SpaceX stock rally extended on Friday. The shares surged 14% to $131.06.
This followed an analyst upgrade and softer U.S. jobs data. Limited insider selling also eased pressure.
Why SpaceX stock rally matters
Argus Research helped drive the move. The firm upgraded SpaceX from Hold to Buy. It maintained a $160 price target.
SpaceX reported strong Q2 results. Revenue reached $7.8 billion, up 92% from last year. This beat expectations of about $6.8 billion.
Adjusted EBITDA hit $3.5 billion. Wall Street expected only $2.1 billion.
Lockup expiration fails to trigger heavy selling
The first post-IPO lockup expired on Thursday. Up to 911.5 million shares became eligible for sale.
The public float increased from 4.9% to 11.8%. Nevertheless, heavy selling did not materialize. Shares gained on Thursday and extended the move on Friday.
Short covering may have amplified the rally. Short interest had risen ahead of earnings and lockup expiration.
Weak jobs report lifts growth stocks
A softer U.S. labor report provided a tailwind. Nonfarm payrolls fell by 23,000 in July. Economists expected an increase of about 86,000.
Lower rate expectations tend to support growth companies. SpaceX is sensitive to changes in borrowing costs. The company plans major spending on AI and Starlink.
SPCX approaches key resistance at $131
SpaceX reached an important technical area. The 4-hour chart places 61.8% Fibonacci near $130.67.
A sustained move above could test $138.63. SPCX also moved above the upper Bollinger Band near $128.20. This shows strong short-term momentum.
The 4-hour RSI rose to 61.29. This is above the signal average of 43.49. It remains below overbought levels nevertheless.
Immediate support sits near $128. The $119.34 Fibonacci level follows. The moving average around $115.24 is also a support.
Despite the rebound, SpaceX remains below its June peak. The next test will be reclaiming the $135 IPO price.