Shares of Elon Musk’s SpaceX climbed more than 14 per cent on June 16, lifting its valuation past Amazon.com and briefly above Microsoft to rank it among the top-five most valuable companies within days of a blockbuster debut.
Shares of the rockets-to-AI company were last up 14.3 per cent at US$220 (S$280), jumping more than 62 per cent above the US$135 initial public offering (IPO) price and giving the company a market capitalisation of around US$2.85 trillion if gains hold.
The stock gave the biggest boost to the Nasdaq Composite index.
Amazon’s valuation stands at US$2.64 trillion. SpaceX also briefly topped Microsoft’s valuation of US$2.92 trillion. The world’s top three companies, meanwhile, exceed US$4 trillion in market value.
SpaceX options also began trading, offering investors another avenue to bet on the future of the newly listed shares.
“Today the SPCX options launch, offering standard monthly expiration and strikes ranging from US$25 to US$380. If call demand is heavy, dealers might be forced to buy SPCX into this low-liquidity situation,” said Brent Kochuba, founder of option analytics platform SpotGamma.
“Starting next week we may see index demand increase, with more shares not slated to be made available for one to two months.”
Analysts and portfolio managers said investors should brace for volatility, particularly early on in SpaceX’s life as a public company, due to its relatively small float and high valuation.
“We can say with certainty that this valuation makes absolutely no sense today. People are buying SpaceX in the expectation that others will buy too and push the price higher – that’s speculation,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.
The company reported sales of US$18.67 billion in 2025 and a net loss of US$4.94 billion after merging with money-losing xAI – in contrast to many of Wall Street’s big technology companies that have posted bumper numbers.
The rally could continue as SpaceX is set for fast-track inclusion in the Nasdaq 100, which will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares.
FTSE Russell and MSCI are also set to add the stock to their indexes, effective June 26 and June 29, respectively.
“While index inclusion alone is typically insufficient to drive sustained repricing, we see the combination of passive flows, momentum, and limited float driving upside beyond historical index-addition moves,” brokerage Zephirin Group said, initiating coverage on the stock with a “buy” rating.
SpaceX also said on June 15 that its underwriters had exercised the “greenshoe” option to purchase additional shares, increasing the total proceeds from its initial public offering to US$85.7 billion from US$75 billion that it raised last week.
More than US$23.1 billion worth of SpaceX shares exchanged hands as of 10.07am ET (10.07pm Singapore time), which was several times the trading volumes in Nvidia, Microsoft, Tesla and Apple combined.
Other heavyweight technology stocks, including Nvidia and Microsoft, were trading slightly lower.
Earlier in the day, SpaceX also said it would acquire software company Anysphere for US$60 billion. REUTERS
