SpaceX Bulls Spar With Bears After Seeing Biggest Short Volu…

Trading in borrowed SpaceX shares climbed more than 35% to 46.2 million shares Friday, the highest among stocks with a market capital of more than $5 billion tracked by moomoo. The daily short volume surged as the stock rallied 15.8% that day, strengthening the case for bears to close out their positions and avoid the risk of a squeeze.

Shares swung between gains and losses Monday morning after briefly climbing above its IPO price of 135. The rebound from the stock’s record low continued after CEO Elon Musk highlighted the long–term potential of Starlink, SpaceX’s primary growth engine.

He touted Starlink’s long-term potential, predicting that its satellite constellation could eventually carry more than 90% of all global internet traffic, even in a scenario where terrestrial competitors (fiber, 5G, other satellite systems, etc.) massively increase their capacity by 10×.

These remarks reinforce the narrative that Starlink could capture an overwhelming share of global internet traffic as AI-driven and machine-to-machine data demand explodes far beyond human usage. That underscores the company’s structural advantages in low-Earth-orbit capacity, potential pricing power, and scalability, which could support higher long-term revenue multiples and investor confidence in Starlink’s trajectory as a dominant infrastructure play.

Short volume as a percentage of the day’s activity stood at 19.08 percent, only slightly above the recent average of 18.70 percent according to data displayed on the Moomoo platform. Increasing share price forces short sellers to close out their bearish wagers or accept the risk of larger losses when volume is heavy.

Friday’s move followed the first major lock-up expiration on Thursday. As much as 911.5 million shares became eligible for sale that day. Still, the feared flood of insider selling failed to materialize and buyers stepped in instead.

Argus Research analyst Steve Silver upgraded SpaceX to Buy from Hold with a $160 price target. The firm pointed to faster-than-expected returns on artificial intelligence spending after the company reported a better-than-expected 92% surge in second-quarter revenue of $7.81 billion.

Adjusted earnings before interest, taxes, depreciation and amortization nearly tripled to $3.54 billion even as capital spending remained elevated, according to the company’s earnings release last week.

Buy block orders outstripped sell orders by $5.3 billion last week, pushing the stock price higher. That trend continued this week, with net inflows reaching $113.71 million in the first 16 minutes of trading Monday, with inflows  exceeding outflows across every size category from small to extra-large orders.

The money-flow chart showed a clear shift to positive net buying in recent sessions. That shift coincided with the share price rebounding from levels near $105 earlier in the week.

Amid the rebound in SpaceX’s share price, a snapshot of holder data now shows a 96.74% profit ratio. Average cost for those positions sat at $121, with support around $120 and resistance near $150.20.

For retail investors the rise in absolute short volume on a big up day signals that bearish activity continues but is being absorbed. High volume with only average short percentage and strong net inflows points to buyers in control for the moment.

The risk remains that elevated capital spending or further share unlocks could reverse the recent flow. Support near the $119 to $120 average-cost zone and resistance near $150 remain the nearest levels to watch on the volume-profile data.

Overall the combination of rising absolute short volume, solid net buying, and Musk’s bandwidth projections shows a market still debating the stock’s trajectory after its post-IPO swings.

Share your thoughts on SpaceX in the comments section. Which side of the debate are you on? Do you think the stock could stay on an upward trajectory, or will the rebound soon lose its steam? Let your voice be heard by voting below.