TLDR
- SpaceX stock jumped more than 10% in premarket Tuesday, rising more than 57% above its IPO price of $135.
- This rise could push SpaceX past Amazon’s market cap of $2.66 trillion, making it the fifth-largest company in the world.
- On Monday, SpaceX shares rose 20%, adding $433 billion in value — the second-largest single-day market cap increase for a U.S. company ever.
- SpaceX is set for an accelerated listing on the Nasdaq 100, which will spur buying from passive funds and ETFs.
- IPO proceeds rose to $85.7 billion after underwriters exercised their Greenshoe option
SpaceX stock was trading at $212.50 premarket on Tuesday, up more than 10%, after rising 20% on Monday. Monday’s gains added $433 billion to its valuation — the second-largest single-day market cap increase for a U.S. company ever, according to Dow Jones market data.
Space Exploration Technologies Corporation, SPCX
At these levels, SpaceX’s market cap is about $2.8 trillion, putting it ahead of Amazon’s current value of $2.66 trillion.
This would make SpaceX the fifth-largest company in the world by market capitalization, after Nvidia, Alphabet, Apple and Microsoft.
The stock is now up more than 57% above its IPO price of $135. This is only the third day of trading.
The scale was enormous. More than $1.76 billion worth of SpaceX shares changed hands before 5 a.m. EST on Tuesday — several times SpaceX’s combined trading volumes. NvidiaMicrosoft, Tesla, and Apple.
Not everyone is convinced that the rise reflects fundamentals. SpaceX reported sales of $18.67 billion last year and a net loss of $4.94 billion after its merger with loss-making company xAI.
“We can say with certainty that this assessment has absolutely no meaning today,” said Ipek Ozkardskaya, chief market analyst at Swissquote Bank. “People are buying SpaceX in the hope that others will buy it too and push the price up – that’s speculation.”
Including a fast track indicator may increase purchases
The stock is set for a quick inclusion in the Nasdaq 100, which will force passive funds and ETFs tracking the index to buy. FTSE Russell and MSCI are also scheduled to add it to their indices on June 26 and June 29, respectively.
This type of forced buying from index trackers could add a new wave of demand on top of existing retail and institutional interest.
Analysts and portfolio managers warn investors to prepare for continued volatility, especially early on SpaceX Life as a public company, given its relatively small size and high valuation.
IPO proceeds rise after exercise of Greenshoe option
SpaceX also confirmed on Monday that its underwriters exercised their greenshoe option, bringing the total IPO proceeds to $85.7 billion from the original $75 billion raised last week. This makes it one of the largest IPOs on record.
Options trading on SpaceX is expected to begin early Tuesday, and early activity is expected to be heavy and likely expensive.
Other big tech names were mixed on Tuesday. Nvidia and Alphabet shares traded slightly lower, while Tesla shares fell 1.5%.
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