SpaceX (SPCX) Stock Surges 10% in Premarket, Closing In on Amazon's Valuation

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SpaceX shares climbed more than 10% in early trading Tuesday, reaching levels 57% higher than the $135 IPO price
The continued surge positions SpaceX to overtake Amazon’s $2.66 trillion valuation, potentially becoming the fifth-largest company globally
Monday’s session saw SpaceX gain 20%, translating to a $433 billion market cap increase — the second-biggest single-day gain recorded for any U.S. firm
Fast-track entry into the Nasdaq 100 index will trigger substantial purchases from index funds and passive investment vehicles
Total capital raised through the IPO reached $85.7 billion following the exercise of the overallotment option by underwriters

Shares of SpaceX were changing hands at $212.50 during premarket hours Tuesday, representing a gain exceeding 10% following Monday’s impressive 20% rally. Monday’s advance contributed $433 billion to the company’s overall valuation — marking the second-largest single-session market cap expansion for any U.S. corporation in history, according to data from Dow Jones Market Data.

Space Exploration Technologies Corp., SPCX

At current trading levels, SpaceX commands a market capitalization approaching $2.8 trillion, positioning it to surpass Amazon’s present valuation of $2.66 trillion.

This achievement would elevate SpaceX to become the world’s fifth-most-valuable company, trailing only Nvidia, Alphabet, Apple, and Microsoft in market capitalization rankings.

Shares have now appreciated more than 57% beyond the initial public offering price of $135. The company is in only its third session as a publicly traded entity.

Trading activity has been extraordinary. More than $1.76 billion in SpaceX shares were exchanged before 5 a.m. Eastern Time on Tuesday — a figure representing multiple times the combined volume of Nvidia, Microsoft, Tesla, and Apple during the same period.

Skepticism persists regarding whether the rally is grounded in business fundamentals. SpaceX disclosed revenue of $18.67 billion for the previous year alongside a net loss of $4.94 billion following its combination with the unprofitable xAI division.

“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.”

Upcoming Index Additions Expected to Drive Additional Demand

The company is scheduled for expedited inclusion in the Nasdaq 100 index, which will compel passive investment funds and exchange-traded funds that track the benchmark to acquire shares. Additionally, FTSE Russell and MSCI have confirmed they will incorporate the stock into their respective indexes on June 26 and June 29.

This mandatory purchasing activity from index-tracking funds may generate another surge of demand layered on top of existing interest from retail and institutional investors.

Market strategists and investment managers are cautioning investors to prepare for ongoing price swings, especially during the early stages of SpaceX’s journey as a publicly listed enterprise, citing its relatively limited float and elevated valuation metrics.

Underwriters Exercise Overallotment, Boosting Total Capital Raised

SpaceX announced Monday that its underwriting syndicate had executed the greenshoe option, increasing total IPO proceeds to $85.7 billion from the initial $75 billion secured during last week’s offering. This positions it among the largest initial public offerings in financial market history.

Options contracts on SpaceX are anticipated to commence trading as soon as Tuesday, with initial activity projected to be robust and premiums likely elevated.

Other major technology stocks displayed mixed performance Tuesday. Nvidia and Alphabet registered modest declines, while Tesla retreated 1.5%.

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