SpaceX Valuation Surpasses Amazon as IPO Frenzy Ignites Market Rally

Elon Musk’s SpaceX has achieved a historic milestone, with its market valuation soaring past Amazon and briefly overtaking Microsoft following its highly anticipated IPO. Driven by massive investor interest and the commencement of options trading, the aerospace and AI giant is rapidly reshaping the global market landscape.

A Trillion-Dollar Surge: SpaceX Overtakes Tech Giants

SpaceX shares witnessed a dramatic surge of over 14% on Tuesday, trading at approximately $220 per share. This rally represents a staggering 62% increase from its initial IPO price of $135. This momentum propelled the company’s market capitalization to roughly $2.85 trillion, allowing it to surpass Amazon’s $2.64 trillion valuation and briefly challenge Microsoft’s $2.92 trillion mark.

The scale of trading activity has been unprecedented. By mid-morning on Tuesday, over $23.1 billion worth of SpaceX shares had changed hands, a volume that exceeded the combined trading totals of Nvidia, Microsoft, Tesla, and Apple. Furthermore, the total proceeds from the IPO rose to $85.7 billion after underwriters exercised the greenshoe option, up from the initial $75 billion.

Options Trading Launch Triggers Massive Demand

The introduction of options trading on Tuesday acted as a significant catalyst for the stock's performance. In just the first 10 minutes of trading, approximately 115,000 options contracts were exchanged. Notably, call options—which bet on the stock price rising—outnumbered put options by a ratio of 1.7-to-1.

This surge in demand has positioned SpaceX as the third most actively traded single-stock contract in the market, trailing only Nvidia and Tesla. Market experts suggest that heavy demand for call options could force dealers to buy more SpaceX shares to manage their positions, potentially fueling further upward momentum.

Analyst Warnings: High Valuation vs. Future Growth

Despite the euphoria, seasoned analysts are urging caution. SpaceX reported revenue of $18.67 billion last year, but also posted a net loss of $4.94 billion following its merger with the AI firm xAI. Some analysts, including those from Swissquote Bank, suggest the current valuation is driven more by speculation and the expectation of continuous buying rather than fundamental metrics.

However, there are significant tailwinds on the horizon. SpaceX is preparing for fast-track inclusion in the Nasdaq 100, as well as the FTSE Russell and MSCI indices later this month. Brokerages like Zephirin Group anticipate that the combination of passive fund inflows and a limited public float could drive the stock even higher.

Strategic Expansion via Acquisitions

Beyond its core rocket and satellite business, SpaceX is aggressively expanding its footprint in the technology sector. The company recently disclosed plans to acquire the software firm Anysphere in a deal valued at $60 billion, signaling a massive strategic pivot toward integrated software and artificial intelligence capabilities.

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