SpaceX Rises Another 20% on Second Trading Day, Market Cap Surpasses $2.5 Trillion
SpaceX shares continued their sharp rally on the second trading day, extending the strong performance that made the company one of the world's most valuable listed firms after its Friday debut.
SpaceX rose 20% on Monday, adding $412 billion to its market capitalization. The stock closed at $192.46 per share, over 42% above the IPO price of $135. The gain pushed SpaceX's market cap above $2.5 trillion, ranking it among the six most valuable publicly traded companies globally.
At its current valuation, SpaceX is less than $135 billion away from surpassing Amazon, which has a market cap close to $2.7 trillion.
SpaceX said in a statement Monday that it had exercised the IPO's overallotment option, allowing underwriters to sell an additional 83.3 million shares. This so-called greenshoe mechanism brought total proceeds to $86.2 billion. After deducting $500 million in underwriting fees as stated in the prospectus, net proceeds were $85.7 billion.
The performance helped boost confidence in artificial intelligence (AI), especially after SpaceX acquired xAI earlier this year to embrace AI. It also lifted the IPO prospects for Anthropic PBC and OpenAI, both of which plan to go public.
"For OpenAI and Anthropic, SpaceX's strong debut and positive investor reception are a good omen, as both companies could be on the IPO path before year-end," Wedbush Securities analyst Dan Ives said in a note to clients.
Still, many investors remain skeptical whether SpaceX deserves such a high valuation, given the company has yet to turn a profit.
Monday was the first full trading day for the stock, officially named Space Exploration Technologies Corp. The stock began trading in New York on Friday just minutes before noon, meaning it traded for only a little over four hours before the close.
"Overall, we view the SpaceX IPO as a watershed moment for the broader tech sector, as the AI revolution and data take the next step forward," Ives said.
