In a stunning display of investor enthusiasm, Elon Musk's SpaceX has rocketed past Amazon in market capitalization, briefly overtaking Microsoft as well, just days after completing the largest initial public offering in history . The space exploration and artificial intelligence company's shares surged more than 14 per cent on Tuesday, pushing its market valuation to approximately $2.85 trillion and making it one of the world's most valuable companies .
The rally came as options trading on SpaceX stock began for the first time, attracting record-breaking demand that surpassed Meta Platforms' options debut in 2012. With more than 1.3 million contracts changing hands on the first day, SpaceX options became the third most actively traded single-stock contracts, trailing only Nvidia and Tesla . The company's meteoric rise has transformed Elon Musk into the world's first trillionaire and cemented SpaceX's position as a dominant force in both aerospace and artificial intelligence .
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What Happened?
SpaceX shares were trading at approximately $220 on Tuesday, up 14.3 per cent on the day and more than 62 per cent above their IPO price of $135 . The rally lifted the company's market capitalisation to about $2.85 trillion, surpassing Amazon's $2.64 trillion valuation and briefly topping Microsoft's $2.93 trillion market value during intraday trading .
The Key Milestones:
| Event | Details |
|---|---|
| IPO Date | June 12, 2026 |
| IPO Price | $135 per share |
| IPO Proceeds | $75 billion (later increased to $85.7 billion with greenshoe option) |
| Current Stock Price | ~$220 (62% above IPO price) |
| Market Cap | ~$2.85 trillion |
| Ranking | Briefly 4th largest U.S. company by market cap |
Trading activity remained exceptionally strong, with more than $23.1 billion worth of SpaceX shares changing hands by mid-morning on Tuesday, exceeding the combined trading volumes of Nvidia, Microsoft, Tesla, and Apple . This unprecedented volume reflects the intense investor demand for the newly public company.
Options Trading Debut Sets Records
Investor interest intensified significantly after options on SpaceX began trading on Tuesday, providing another way for traders to bet on the stock's future performance .
Options Trading Highlights:
- Volume: 1.3 million contracts traded by 2 p.m. ET, more than triple Meta's previous first-day record of about 365,000 contracts
- Premium: Over $2 billion worth of options premium traded
- Call-Put Ratio: Calls outpaced puts 1.4-to-1, indicating bullish sentiment
- Ranking: Third most actively traded single-stock options, behind only Tesla and Nvidia
"Early option volume indicates another SpaceX success," said Seth Hickle, chief investment officer at Mindset Wealth Management . Options give holders the right, but not the obligation, to buy and sell shares at a predetermined price within a set time period, offering a low-cost way to gain exposure to the company's stock .
The robust showing in SpaceX options followed the company's strong IPO debut on Friday, when shares surged more than 25 per cent, pushing its valuation above $2 trillion . Analysts noted the options flow appeared primarily retail-driven, highlighting the widespread Main Street interest in the stock .
The $60 Billion Cursor Acquisition
SpaceX's rally was further boosted by the announcement that it would acquire Anysphere, the parent company of Cursor, in an all-stock transaction valued at $60 billion . Cursor is a popular AI-powered coding assistant that has become widely used by developers for "vibe coding" .
Why the Acquisition Matters:
- AI Integration: Cursor's access to developers' data, such as coding requests and design decisions, could help improve SpaceX's AI models like Grok
- Strategic Alignment: SpaceX and Cursor had previously announced a partnership in April that paired Cursor's product expertise with SpaceX's supercomputers
- Vertical Integration: The acquisition is part of Musk's vision to form "the most ambitious, vertically-integrated innovation engine on (and off) Earth"
"SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world's most useful AI models," SpaceX posted on X .
Breaking Down SpaceX's Valuation
SpaceX's enormous valuation is built on three distinct business segments, with artificial intelligence being the primary driver :
The Three Segments
| Segment | Description | Total Addressable Market (TAM) |
|---|---|---|
| Space | Rocket launches, commercial payloads, astronaut missions | $370 billion |
| Connectivity (Starlink) | Satellite internet with 10.3 million users | $1.6 trillion |
| Artificial Intelligence | xAI, Grok, data centers, orbital data centers, enterprise applications | $26.5 trillion |
Starlink, which has established a low-Earth-orbit satellite internet service with over 10,400 satellites, generated nearly $11.4 billion in revenue and roughly $4.4 billion in operating profit in 2025 . The division is already profitable and continues to expand its user base.
However, the AI division represents the vast majority of the company's total addressable market. SpaceX believes the TAM of this business is $26.5 trillion, with enterprise applications accounting for $22.7 trillion of that figure . The company is working with Tesla to develop an agentic AI platform called Macrohard, which would be "capable of fully emulating digital workflows and augmenting human operation of computers" .
Analyst Reactions: Bulls vs. Bears
The rally has sparked intense debate among analysts about whether SpaceX's valuation is justified or represents a speculative bubble .
Bearish Views
"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 .
CFRA initiated coverage with a "sell" rating and a 12-month price target of $115, a nearly 29% drop from Friday's closing price, citing "the company's extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity" .
Morningstar analyst Nicolas Owens values SpaceX at $63 per share and called the stock "overvalued" .
Bullish Views
New Street Research initiated coverage with a $165 price target, arguing investors may need to look much further out than they typically would for a public company .
"Can you look [at] this business, let's say, over a longer time frame than you would over most equities to justify to get to the current valuation? We think you can," said James Ratzer, partner and senior analyst at New Street Research. "But we think you have to be looking out over a kind of 20- to 25-year time frame" .
Zephirin Group initiated coverage with a "buy" rating, noting that index inclusion could drive further gains .
What This Means for Investors
Speculative Frenzy
The sheer velocity of SpaceX's rise underscores a speculative element in the stock's surge . Some market watchers caution that the company's relatively small public float could make the stock volatile, amplifying price swings in either direction .
Index Inclusion Tailwind
Market participants expect additional demand for the stock as SpaceX prepares for fast-track inclusion in the Nasdaq 100 index . The company is also set to be added to FTSE Russell and MSCI indices later this month .
Long-Term Story
For investors willing to take a multi-decade view, SpaceX offers exposure to Musk's ambitious vision of orbital data centers and AI agents that can essentially work like humans . However, these promises remain largely unproven, and the company will need to deliver meaningful results to sustain its current valuation .
What's Next for SpaceX?
- Index Inclusion: Fast-track inclusion in Nasdaq 100, FTSE Russell, and MSCI indices is expected to drive passive demand
- Integration of Cursor: The $60 billion acquisition of Cursor will enhance SpaceX's AI capabilities
- Orbital Data Centers: SpaceX plans to deploy space-based AI data centers, which the company believes are essential due to the electricity demands of the global AI boom
- Grok and Macrohard: Development of Grok and the enterprise AI platform Macrohard in partnership with Tesla
Conclusion
SpaceX's historic rise from IPO to a $2.85 trillion market cap in just a few days represents one of the most remarkable stock debuts in history. The company has not only surpassed Amazon in valuation but has briefly overtaken Microsoft, placing it among the most valuable companies in the world .
The record-breaking options trading debut, with more than 1.3 million contracts changing hands, underscores the intense investor appetite for exposure to Elon Musk's rockets-to-AI empire . However, analysts remain divided on whether the valuation is justified, with some calling it speculation and others pointing to a 20-to-25-year investment horizon .
As SpaceX prepares for index inclusion and integrates its $60 billion acquisition of Cursor, investors and analysts alike will be watching closely to see if the company can deliver on its ambitious promises of orbital data centers and AI agents . For now, the stock continues to soar, and the debate over its valuation is far from over.
FAQ Section
Q1: How much did SpaceX's IPO raise?
A1: SpaceX raised $75 billion in its IPO, which was later increased to $85.7 billion after underwriters exercised the greenshoe option to purchase additional shares .
Q2: What is SpaceX's current market capitalization?
A2: SpaceX's market capitalization reached approximately $2.85 trillion, surpassing Amazon and briefly overtaking Microsoft during intraday trading .
Q3: What is SpaceX's 2025 revenue and net income?
A3: SpaceX reported revenue of $18.67 billion in 2025 and a net loss of $4.94 billion following its merger with loss-making AI firm xAI .
Q4: What is SpaceX acquiring Cursor for?
A4: SpaceX is acquiring Anysphere, the parent company of Cursor, in an all-stock transaction valued at $60 billion to enhance its AI capabilities .
Q5: What are analysts saying about SpaceX's valuation?
A5: Analysts are divided. Some, like CFRA, have issued "sell" ratings with $115 price targets, while others like New Street Research are bullish with $165 targets, citing a 20-to-25-year investment horizon .
Image Alt Text
Hero Image:
"Elon Musk's SpaceX rocket launching during sunset, representing the company's meteoric rise in market value."
Secondary Image:
"SpaceX stock chart showing the 62% surge from IPO price, with the Nasdaq listing symbol SPCX."
Tertiary Image:
"SpaceX Starlink satellite internet infrastructure in low-Earth orbit, representing the connectivity division's $1.6 trillion TAM."
Social Media Caption
🚀 SPACEX SOARS PAST AMAZON!
Elon Musk's SpaceX just achieved the impossible. In just days after the largest IPO in history, SpaceX has surpassed Amazon in market value and briefly overtaken Microsoft.
📊 Key numbers:
✅ $2.85 trillion market cap
✅ 62% above IPO price
✅ $2B options traded on debut
✅ $60B Cursor acquisition
Is this speculation or the future of AI and space? 👇
SpaceX #ElonMusk #IPO #StockMarket #AI #Starlink #Investing #SPCX #SpaceNews #TechNews #NexusNewsAlert
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