Key Highlights
- SpaceX shares climbed more than 10% during premarket hours Tuesday, representing a 57%+ increase from its debut price of $135
- The continued surge positions SpaceX to potentially surpass Amazon’s $2.66 trillion valuation, ranking it as the fifth-most valuable company globally
- Monday’s session saw SpaceX climb 20%, generating a $433 billion market cap expansion — the second-biggest single-day gain in U.S. corporate history
- The company faces expedited entry into the Nasdaq 100 index, triggering mandatory purchases from index-tracking funds and ETFs
- Total capital raised through the IPO reached $85.7 billion following underwriters’ activation of the greenshoe provision
Shares of SpaceX reached $212.50 during premarket activity Tuesday, representing an increase exceeding 10% following Monday’s remarkable 20% advance. The previous session’s performance delivered a $433 billion expansion to the company’s overall valuation — marking the second-highest single-session market cap growth for any U.S. corporation in recorded history, according to Dow Jones Market Data.
Space Exploration Technologies Corp., SPCX
With shares at these elevated levels, SpaceX’s total market valuation approaches $2.8 trillion, positioning it to eclipse Amazon’s present $2.66 trillion capitalization.
Reaching this milestone would establish SpaceX as the planet’s fifth-most valuable enterprise, trailing only Nvidia, Alphabet, Apple, and Microsoft in market capitalization rankings.
The equity has now appreciated beyond 57% compared to its initial public offering price of $135 per share. This remarkable performance comes during only its third trading session.
Trading activity has reached extraordinary proportions. Before 5 a.m. ET Tuesday, more than $1.76 billion in SpaceX shares exchanged ownership — a figure representing multiple times the aggregate trading volume of Nvidia, Microsoft, Tesla, and Apple combined.
Skepticism persists regarding whether the rally accurately reflects underlying business fundamentals. Financial disclosures reveal SpaceX generated $18.67 billion in revenue during the previous year while posting a $4.94 billion net deficit following its combination with unprofitable xAI.
“We can say with certainty that this valuation makes absolutely no sense today,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank. “People are buying SpaceX in the expectation that others will buy too and push the price higher — that’s speculation.”
Accelerated Index Entry Set to Drive Additional Demand
The equity is positioned for expedited acceptance into the Nasdaq 100 benchmark, compelling passive investment vehicles and exchange-traded funds that mirror the index to acquire shares. Additionally, FTSE Russell and MSCI have scheduled the stock’s incorporation into their respective indexes for June 26 and June 29.
This mandatory purchasing from index-following vehicles threatens to generate another surge of demand atop current retail and institutional buying interest.
Financial analysts and investment professionals are cautioning market participants to prepare for ongoing price swings, especially during the early phases of SpaceX’s existence as a publicly traded entity, considering its comparatively limited available float and stretched valuation metrics.
Total Capital Raised Increases Following Over-Allotment Exercise
SpaceX disclosed Monday that its underwriting syndicate activated the over-allotment provision, boosting aggregate IPO proceeds to $85.7 billion from the initial $75 billion secured during last week’s offering. This positions it among the most substantial initial public offerings in market history.
Derivatives trading for SpaceX is anticipated to commence as soon as Tuesday, with initial activity projected to be substantial and potentially costly.
Other major technology stocks displayed mixed performance Tuesday. Nvidia and Alphabet edged slightly into negative territory, while Tesla declined 1.5%.
