Key Highlights
- SpaceX shares climbed more than 10% during premarket hours Tuesday, now trading 57% above the $135 IPO launch price
- Continued momentum could propel SpaceX beyond Amazon’s $2.66 trillion valuation, positioning it as the fifth-most valuable company globally
- Monday’s session saw SpaceX climb 20%, creating $433 billion in market value — marking the second-biggest single-day gain in U.S. corporate history
- The company faces accelerated addition to the Nasdaq 100 index, triggering automatic purchases from index-tracking funds
- Total IPO capital raised reached $85.7 billion following underwriter exercise of the overallotment provision
Shares of SpaceX reached $212.50 in premarket activity Tuesday, marking a gain exceeding 10% after Monday’s impressive 20% advance. The previous session’s rally created $433 billion in additional market capitalization — representing the second-largest single-session valuation increase for any U.S.-based corporation in recorded history, according to Dow Jones Market Data.
Space Exploration Technologies Corp., SPCX
Trading at current prices, SpaceX commands a market capitalization approaching $2.8 trillion, positioning it to surpass Amazon’s present $2.66 trillion valuation.
Reaching this milestone would establish SpaceX as the planet’s fifth-most valuable enterprise, trailing only Nvidia, Alphabet, Apple, and Microsoft.
Shares have now appreciated over 57% from the initial public offering price of $135. The company entered its third day of public market trading.
Trading activity has reached extraordinary levels. Before 5 a.m. ET Tuesday, more than $1.76 billion in SpaceX equity changed ownership — representing multiples of the aggregate trading volumes for Nvidia, Microsoft, Tesla, and Apple combined.
Skepticism remains about whether the surge reflects underlying business fundamentals. Financial disclosures show 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.”
Expedited Index Addition May Drive Additional Demand
SpaceX faces rapid incorporation into the Nasdaq 100 benchmark, compelling passive investment vehicles and exchange-traded funds that replicate the index to acquire shares. Additionally, FTSE Russell and MSCI plan to incorporate the stock into their respective benchmarks on June 26 and June 29.
This mandatory purchasing from index-replicating funds may generate another surge of demand layered atop existing enthusiasm from retail traders and institutional investors.
Market professionals and fund managers caution investors to prepare for ongoing price swings, especially during the early chapters of SpaceX’s existence as a publicly-traded entity, considering its comparatively limited free float and elevated valuation metrics.
IPO Capital Increases Following Overallotment Exercise
SpaceX disclosed Monday that underwriting banks activated the overallotment mechanism, elevating 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 ever recorded.
Derivatives trading for SpaceX options may commence as soon as Tuesday, with initial activity anticipated to be substantial and potentially costly.
Other major technology stocks showed mixed performance Tuesday. Nvidia and Alphabet experienced modest declines, while Tesla dropped 1.5%.
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