SpaceX (SPCX) shares plunged 5.01% intraday, erasing gains from a recent three-day rally that had briefly pushed the stock back above its $135 IPO price. The sharp decline came amid a confluence of negative catalysts, including disappointing earnings from a key competitor and mounting profit-taking pressure ahead of the next lockup expiration.

First, AST SpaceMobile, a major rival to SpaceX’s Starlink in the Direct-to-Cell space broadband market, reported quarterly results that missed consensus estimates. The company posted revenue of $31.5 million, below the expected $35.18 million, and an adjusted loss per share of $0.77, wider than the anticipated $0.26 loss. Despite maintaining its full-year 2026 revenue guidance, the miss highlighted the competitive landscape and cast a shadow over the satellite communications sector. Analysts at Cantor, while raising their price target on AST SpaceMobile, noted that the company could continue to attract demand from global telecom operators fearing disruption by Starlink, adding to the competitive pressures on SpaceX.

Second, short-term traders moved to lock in profits after the stock’s recent recovery above the IPO price, and positioning ahead of the next scheduled lockup expiration on August 20 further dampened sentiment. That upcoming unlock will release an additional 7% tranche of restricted shares, or approximately 320 million shares, into the market, prompting some investors to reduce risk. Additionally, data showed that retail investors turned net sellers of SpaceX stock for the first time since the June IPO, a shift in sentiment that added to the selling pressure. Combined with ongoing concerns about the company’s heavy capital expenditures on AI infrastructure, the stock faced a sharp pullback during the session.