Virgin Galactic Short Interest Soars 86% to 28M Shares After SpaceX IPO
SPCE•Virgin Galactic’s short position has climbed 86% year-to-date to 28 million shares as SpaceX’s $135 IPO debuts redefine sector hedging strategies. With SpaceX’s market cap briefly surpassing Amazon and Microsoft, investors are favoring direct exposure over smaller space stocks like Virgin Galactic.
1. SpaceX IPO Reshapes Sector Dynamics
SpaceX’s blockbuster $135 IPO debut has propelled its stock up 50% since listing and briefly exceeded the market caps of Microsoft and Amazon. This record launch removed the primary public proxy constraint in space investing, prompting reallocations across the sector.
2. Virgin Galactic Bears Ramp Up
As investors shift hedges toward SpaceX, SPCE’s short interest has surged 86% year-to-date, reaching 28 million shares sold short. S3 Partners flags Virgin Galactic as one of the most conviction-heavy bearish trades given its pre-revenue, milestone-dependent profile.
3. Evolving Hedging Strategies
With SpaceX’s estimated borrowing costs at just 1%–3% annually, market participants no longer need smaller space equities for exposure or hedging. This contrasts with shorts retreating in RKLB and VSAT as improving fundamentals dampen bearish bets on those stocks.
