Key Takeaways
- SpaceX shares climbed more than 10% during premarket hours Tuesday, representing a gain exceeding 57% from the $135 initial public offering price
- The continued surge positions SpaceX to potentially overtake Amazon’s $2.66 trillion valuation, which would establish it as the fifth-most valuable company globally
- Monday’s trading session saw SpaceX shares skyrocket 20%, contributing $433 billion to its market value — marking the second-biggest single-day market cap expansion for any U.S. corporation in history
- The company faces accelerated inclusion in the Nasdaq 100 index, triggering mandatory purchases by index-tracking funds and exchange-traded products
- Total capital raised through the IPO reached $85.7 billion following the underwriters’ exercise of their over-allotment provision
Shares of SpaceX were changing hands at $212.50 during premarket activity Tuesday, representing a gain exceeding 10%, following Monday’s remarkable 20% surge. The previous session’s advance contributed $433 billion to the company’s overall valuation — representing the second-largest single-session market capitalization expansion for any U.S. corporation on record, according to data from Dow Jones Market Data.
Space Exploration Technologies Corp., SPCX
With these valuations, SpaceX’s market capitalization approaches $2.8 trillion, positioning it to surpass Amazon’s present $2.66 trillion valuation.
Such a move would establish SpaceX as the globe’s fifth-largest corporation by market capitalization, trailing only Nvidia, Alphabet, Apple, and Microsoft.
Shares have now advanced more than 57% beyond the $135 initial offering price. The company has been publicly traded for merely three sessions.
Trading activity has been extraordinary. More than $1.76 billion in SpaceX shares exchanged ownership before 5 a.m. Eastern Time on Tuesday — representing multiple times the aggregate trading volumes of Nvidia, Microsoft, Tesla, and Apple combined.
Skepticism persists regarding whether the rally aligns with underlying business fundamentals. SpaceX disclosed revenue of $18.67 billion for the previous year alongside a net deficit of $4.94 billion following its combination with unprofitable xAI.
“We can state definitively that this valuation is completely disconnected from reality at present,” commented Ipek Ozkardeskaya, senior market analyst at Swissquote Bank. “Investors are acquiring SpaceX shares anticipating that additional buyers will emerge and drive prices even higher — this represents pure speculation.”
Accelerated Index Addition May Intensify Buying Pressure
The shares are positioned for expedited addition to the Nasdaq 100 index, compelling passive investment vehicles and exchange-traded funds that replicate the index to acquire positions. Both FTSE Russell and MSCI have scheduled additions to their respective indexes on June 26 and June 29.
This mandatory purchasing by index-tracking products could generate another surge of demand layered onto the existing retail and institutional appetite.
Market strategists and investment professionals are cautioning investors to prepare for ongoing price swings, especially during the initial phase of SpaceX’s existence as a publicly traded entity, considering its comparatively limited free float and elevated valuation metrics.
IPO Capital Raised Increases Following Over-Allotment Exercise
SpaceX disclosed Monday that its underwriting syndicate exercised the over-allotment provision, elevating aggregate IPO capital to $85.7 billion from the initial $75 billion secured during the prior week. This positions it among the most substantial initial public offerings in market history.
Options contracts on SpaceX shares are anticipated to commence trading as soon as Tuesday, with initial activity projected to be substantial and likely carrying elevated premiums.
Other large-capitalization technology stocks displayed mixed performance on Tuesday. Nvidia and Alphabet registered modest declines, while Tesla shares retreated 1.5%.
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