Retail investors have been exhibiting signs of heightened activity in the run-up to the highly anticipated SpaceX IPO, with some speculative trading tied to the company’s success surging across various platforms. According to recent reports from Vanda Research, there has been a notable shift in retail sentiment towards certain stocks, particularly those in the technology and semiconductor sectors.

One possible explanation for this trend is that investors are building up their “dry powder” ahead of the SpaceX IPO, which is expected to be one of the most highly anticipated and heavily scrutinized initial public offerings (IPOs) in recent years. As a result, some retail investors may be looking to rotate their capital into other areas that are perceived to have strong growth potential, such as SpaceX.

To illustrate this point, Vanda Research has observed a significant swing in retail sentiment towards MicroStrategy (MU), Snap (SNDK), Marvell Technology (MRVL), and SoftBank (SOXL) over the past month. While net buying activity for these stocks was relatively strong just a few weeks ago, recent data suggests that retail investors have been aggressively selling these names, potentially in anticipation of the SpaceX IPO.

For instance, MicroStrategy has seen a dramatic swing from roughly $350 million of net buying to $250 million of net selling on a 1-month rolling basis. This shift in sentiment is particularly noteworthy given MicroStrategy’s historical association with SpaceX and Elon Musk, who serves as the company’s chairman.

It’s worth noting that these trends are not necessarily indicative of a broader market rotation, but rather a specific response to the impending SpaceX IPO. As such, retail investors may be looking to capitalize on what could be a highly lucrative opportunity in the near term.