SpaceX IPO: Company Surpasses Amazon in Market Value Following IPO Surge; Options Trading Commences
Shares of Elon Musk’s SpaceX surged over 14% on Tuesday, elevating the company’s market valuation to approximately $2.85 trillion. This increase briefly placed SpaceX ahead of Microsoft and above Amazon’s market value of $2.64 trillion. The stock was trading at around $220, reflecting a rise of more than 62% from its initial public offering price of $135.
Investor enthusiasm for SpaceX was fueled by the commencement of options trading on Tuesday. Approximately 115,000 options contracts were traded within the first ten minutes, with call options outpacing put options by a ratio of 1.7-to-1. SpaceX options quickly became the third most actively traded single-stock contracts, following Nvidia and Tesla. Brent Kochuba, founder of options analytics platform SpotGamma, noted that heavy call demand could compel dealers to buy SpaceX shares in a low-liquidity environment.
Despite the impressive rally, analysts warned of potential volatility due to the company’s limited public float and high valuation. Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank, expressed skepticism about the current valuation, suggesting it is driven by speculation rather than fundamentals. SpaceX reported $18.67 billion in revenue last year, alongside a net loss of $4.94 billion following its merger with AI firm xAI.
Market participants anticipate further demand for SpaceX shares as the company prepares for fast-track inclusion in the Nasdaq 100 index, along with additions to FTSE Russell and MSCI indices later this month. Brokerage Zephirin Group initiated coverage with a “buy” rating, suggesting that the combination of passive flows, momentum, and limited float could drive prices higher.
In a related development, SpaceX announced that underwriters had exercised the greenshoe option, raising total proceeds from its IPO to $85.7 billion, up from $75 billion. Trading activity remained robust, with over $23.1 billion worth of SpaceX shares exchanged by mid-morning on Tuesday, surpassing the combined trading volumes of Nvidia, Microsoft, Tesla, and Apple. The company also revealed plans to acquire software firm Anysphere in a deal valued at $60 billion.
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