SpaceX Market Cap Surpasses Amazon and Microsoft After IPO
SpaceX, a newly public company, has reportedly exceeded Amazon's market capitalization within three days of its public trading debut, and briefly surpassed Microsoft. The company, which reported $18.7 billion in revenue and a $4.9 billion loss last year, saw its valuation soar amid significant investor interest. This surge in market value occurred despite Amazon recording $717 billion in revenue and $77.7 billion in profit during the same period. Elon Musk's net worth increased significantly, reflecting the company's rapid valuation growth.
SpaceX, which recently became publicly traded, has reportedly surpassed Amazon's market capitalization on its third day of public trading. The company also briefly overtook Microsoft in market cap on Tuesday morning.
This valuation increase occurred despite SpaceX's 2025 revenue being significantly lower than Amazon's. Last year, SpaceX reported $18.7 billion in revenue and a loss of $4.9 billion. In contrast, Amazon recorded $717 billion in revenue and $77.7 billion in profit during the same period. Additionally, SpaceX reported a $4.28 billion loss in the first quarter alone.
Elon Musk's net worth has reportedly reached $1.27 trillion, with an estimated $165 billion increase on Tuesday. This figure is noted to be more than triple the wealth of Larry Page, who is listed as the world's second-richest person at $314 billion.
The company's market surge is partly attributed to its acquisition of Cursor, an AI coding tool, for a sum reportedly greater than what SpaceX has spent on rockets throughout its existence, according to Eric Berger, a Senior Space Editor at Ars Technica. The IPO, priced at $135 per share, saw a significant return for initial investors.
Investor activity has been notable, with retail investors contributing a net $225 million to SpaceX in its first two days, accounting for approximately 75% of all net single-stock buying in the market during that period, according to Vanda Research. Demand for shares is high, with only about 4% of SpaceX shares currently available, while the remainder are locked up. Passive funds are expected to buy between $22 billion and $27 billion worth of SPCX for index inclusion.
Options trading for SpaceX commenced on Tuesday, with approximately 600,000 contracts traded in the first hour. Some traders are reportedly investing millions in $250 call options, anticipating further stock increases. This trading dynamic, where dealers buy SPCX to hedge sold calls as the stock rises, has drawn comparisons to the 2021 GameStop stock surge. Jim Cramer, while expressing his liking for the stock, referred to it as a "memestock" and voiced discomfort, recalling his skepticism during the GameStop frenzy.
SpaceX's corporate structure has expanded beyond rocketry. Elon Musk merged xAI into SpaceX in February, following the integration of X into xAI the previous year. With the Cursor acquisition, the entity now encompasses reusable rockets, Starlink, a frontier AI lab, a social network, and an AI coding startup. Musk has projected that the company could achieve approximately $1 trillion in revenue by 2030.
Analyst opinions vary. Dan Ives of Wedbush described the situation as indicative of a "fourth industrial revolution." Conversely, CFRA initiated coverage with a "sell" rating and a $115 target price, representing a 29% reduction from its day-one closing price.
According to Fortune, (Source: Fortune)
