Why Intuitive Machines Stock Popped Then Dropped

SpaceX IPO excitement is reaching a fever pitch, driving abstraction stocks sharply higher Monday greeting -- temporarily.

Intuitive Machines (NASDAQ: LUNR) stock, the institution that returned America to the satellite successful 2024 and that reported soaring income past week, jumped astir 14% retired of the gross this greeting earlier reversing and giving backmost each its gains. As of 10:40 a.m. ET, Intuitive shares are really down 2%.

SpaceX picks an IPO day

That's rather a turnaround erstwhile you see that, arsenic precocious arsenic Friday, 4 Wall Street banks lined up to raise price targets connected Intuitive Machines. Absent atrocious quality today, wherefore is sentiment abruptly reversing?

I've really got immoderate thoughts connected that.

Start with the IPO news: Over the weekend, Reuters reported SpaceX has moved up its IPO date. SpaceX volition statesman selling its "roadshow" connected June 4, past terms the IPO connected June 11, and statesman trading the adjacent day.

So that's the SpaceX IPO date: June 12.

Is the SpaceX IPO bully quality oregon atrocious quality for Intuitive Machines?

This means abstraction investors person little than a period remaining earlier the SpaceX IPO. Less than a period to commercialized abstraction stocks amid the IPO excitement. Less than a period for Intuitive Machines stock, which is up 32% successful the past 2 weeks, to support rocketing.

In different words, this momentum banal whitethorn soon tally retired of gas.

The worst quality for Intuitive Machines is that erstwhile SpaceX does IPO, it'll suck each the oxygen retired of the airlock. Investors who are excited astir SpaceX volition beryllium capable to bargain SpaceX, not conscionable put successful a second-string substitute for the biggest abstraction institution connected Earth.

When that happens, I expect different abstraction stocks to fall. In fact, this whitethorn adjacent beryllium happening today.

Should you bargain banal successful Intuitive Machines close now?

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