SpaceX surpasses Amazon as the 5th largest stock
SpaceX experienced a notable increase for the third consecutive day on Tuesday, surpassing Amazon.com Inc. in market value to secure its position as the fifth-largest stock globally. Shares concluded the trading session with a 4.8 percent increase, elevating its market capitalisation to $2.65 trillion, approximately $8 billion above that of Amazon. At the stock’s intraday high, the market value of Elon Musk’s rocket and AI company surpassed that of Microsoft Corp., momentarily positioning it as the world’s fourth-largest stock. At least a portion of the price movement since its introduction can be attributed to the limited supply of SpaceX shares available for trading, with merely around 4.2 percent accessible on the first day. Such conditions can lead to increased volatility in trading, rendering the stock susceptible to significant fluctuations that can rapidly alter its market valuation. That is a consideration. “We’re discussing a firm with a notably restricted number of shares accessible to the public in contrast to its headline market capitalization,” stated Angelo Kourkafas. The gains in SpaceX shares, up 49 per cent from their $135 IPO price, indicate a robust and sustained investor appetite, alleviating concerns that the record IPO would overwhelm the market’s capacity to absorb it. The performance sets the stage for possible public offerings this year from artificial intelligence contenders Anthropic PBC and OpenAI, both anticipated to reach valuations around $1 trillion.
SpaceX announced on Tuesday that it has officially agreed to acquire Cursor in a transaction that values the AI coding startup at $60 billion. Cursor investors will have the right to receive SpaceX stock based on the implied equity value of Cursor, as stated in a company filing. Retail traders have emerged as a significant force behind the robust beginning, acquiring as much SpaceX stock in its initial two days of trading as they did throughout the entire US stock market in the previous week, based on data from Vanda Research. Despite its status as one of the leading companies globally, SpaceX generates significantly lower revenue compared to its megacap counterparts. The company generated $18.7 billion in 2025, whereas Microsoft reported revenue of $281.7 billion and Amazon approached nearly $717 billion. Tuesday also marked the commencement of trading for SpaceX options contracts on exchanges such as Cboe Global Markets Inc. and Nasdaq Inc., an event that may further amplify volatility in the stock. Other options exchanges, including those owned by Intercontinental Exchange Inc.’s NYSE and Miami International Holdings Inc., are anticipated to list early next week.
When traders buy calls, market makers on the opposite side of the trade mitigate their risk by acquiring shares that correspond to their derivatives exposure. As the shares experience a rally, the exposure increases, which may compel market makers to acquire additional shares in order to maintain balanced positions, thereby contributing to the momentum. More than 1.6 million lots of options exchanged as traders engaged in speculation regarding potential further gains in SpaceX. “The float is undeniably a component of this.” Dave Mazza said “Index inclusion is coming too, which turns passive funds into forced buyers against a tradable supply of less than 5 per cent and that mechanical demand meeting almost no supply amplifies every move.” Nasdaq Inc. has amended its regulations to facilitate quicker inclusion of shares from large corporations such as SpaceX, which may be added to the index in the near future. Such a development would bolster the stock price, as index-tracking funds would be compelled to acquire shares of SpaceX.
S&P, Dow Jones Indices has opted against modifying its regulations to facilitate quicker inclusion of new IPOs, which indicates that SpaceX will not be promptly added to the S&P 500. Market observers expect that shares will encounter heightened downside pressure as insiders gain the opportunity to sell additional stock with the impending expiration of lock-up agreements. The initial batch of shares will become available for sale following SpaceX’s first earnings release, with certain conditions dependent on the share price at that moment. Musk’s entire stake, meanwhile, remains restricted for the initial year of trading. “We will not know the real clearing price until the lockups start rolling off after Q2 earnings and actual supply meets this demand,” Mazza stated.
