SpaceX’s Historic IPO Propels Market Value Toward Amazon

SpaceX continued its blistering start as a public company, with shares jumping more than 10% in premarket trading Tuesday and pushing the newly listed rocket maker toward a market capitalization above Amazon’s. The move comes just four trading days after SpaceX’s debut on the Nasdaq and highlights how a tiny supply of shares and intense demand can rapidly reshape market rankings.

A historic IPO and explosive early trading

SpaceX priced its initial public offering at $135 per share on June 11, raising about $75 billion, the largest IPO on record, and later boosted proceeds to roughly $85.7 billion after underwriters exercised their greenshoe option. The stock has seen extraordinary turnover: premarket trades alone exceeded $1.76 billion on Tuesday, dwarfing the usual volumes of several major tech names combined.

Only a sliver of SpaceX’s stock was made available to public investors. The company floated about 4.2% of its shares in the IPO, rising to roughly 4.9% with the greenshoe purchase. That thin free float, paired with robust retail appetite, including about $2.2 billion in purchases from Japanese investors, has amplified price moves and created a speculative dynamic in which buyers chase momentum.

Market implications and index inclusion

If gains hold, SpaceX would leap into the ranks of the world’s largest listed companies, potentially overtaking Amazon’s roughly $2.66 trillion valuation. The stock’s rapid ascent is likely to be reinforced by fast-track inclusions. SpaceX is expected to join the Nasdaq 100 and be added to major benchmarks like FTSE Russell and MSCI later this month, which would force many passive funds and ETFs to buy shares.

Despite the froth, some analysts warn the share price is disconnected from fundamentals. SpaceX reported about $18.7 billion in revenue last year but posted a net loss of $4.94 billion following its merger with xAI. Research outfits differ sharply on fair value. Morningstar has pegged intrinsic worth near $63 per share, while CFRA began coverage with a sell rating and a $115 target. Critics say the current rally resembles speculative buying driven by expectations of further buyers, not by near-term profit growth.