SpaceX shares surged more than 14 percent on Tuesday, pushing the rocket and artificial intelligence company's market valuation above Amazon and briefly ahead of Microsoft, as investors continued to pile into the newly listed stock, according to a Reuters report. Shares were last trading around $220, up 14.3 percent on the day and more than 62 percent above the $135 IPO price. The rally lifted SpaceX's market capitalisation to about $2.85 trillion, making it one of the world's most valuable companies. Amazon's market value stands at $2.64 trillion, while SpaceX briefly overtook Microsoft's valuation of $2.92 trillion during trading, the report added. The world's three most valuable companies remain above the $4 trillion mark.
Options Trading Debuts with Heavy Volume
Investor interest intensified after options on SpaceX began trading on Tuesday, providing another way for traders to bet on the stock's future performance. Around 115,000 options contracts changed hands within the first 10 minutes of trading, with call options outnumbering put options by a ratio of 1.7-to-1. According to Bloomberg data cited by Reuters, SpaceX options became the third most actively traded single-stock contracts, behind only Nvidia and Tesla.
"Today the SPCX options launch, offering standard monthly expiration and strikes ranging from $25 to $380. If call demand is heavy, dealers might be forced to buy SPCX into this low-liquidity situation," said Brent Kochuba, founder of options analytics platform SpotGamma, as quoted by Reuters.
Analysts Warn of Speculative Volatility
Despite the sharp rally, several analysts cautioned that investors should be prepared for significant volatility given the company's relatively small public float and lofty valuation. "We can say with certainty that this valuation makes absolutely no sense today. People are buying SpaceX in the expectation that others will buy too and push the price higher — that's speculation," said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, according to Reuters.
The company reported revenue of $18.67 billion last year and a net loss of $4.94 billion following its merger with loss-making AI firm xAI, Reuters reported. The financial results underscore the gap between the company's current earnings and its market capitalisation.
Index Inclusion and IPO Proceeds Lift Further
Market participants expect additional demand for the stock as SpaceX prepares for fast-track inclusion in the Nasdaq 100 index. The company is also set to be added to FTSE Russell and MSCI indices later this month. "While index inclusion alone is typically insufficient to drive sustained repricing, we see the combination of passive flows, momentum, and limited float driving upside beyond historical index-addition moves," brokerage Zephirin Group said while initiating coverage with a "buy" rating.
SpaceX also announced on Monday that underwriters had exercised the greenshoe option to purchase additional shares, increasing total proceeds from its initial public offering to $85.7 billion from the $75 billion raised last week. Trading activity remained exceptionally strong, with more than $23.1 billion worth of SpaceX shares changing hands by mid-morning on Tuesday, exceeding the combined trading volumes of Nvidia, Microsoft, Tesla and Apple. The company also disclosed plans to acquire software firm Anysphere in a deal valued at $60 billion.
| Key Financial Figures | Value |
|---|---|
| SpaceX share price (latest) | $220 |
| Day change | +14.3% |
| IPO price | $135 |
| Market capitalisation | $2.85 trillion |
| Amazon market cap | $2.64 trillion |
| Microsoft market cap | $2.92 trillion |
| 2024 revenue | $18.67 billion |
| Net loss (post-xAI merger) | $4.94 billion |
| IPO proceeds (total) | $85.7 billion |
| Options traded (first 10 min) | 115,000 contracts |
For treasury professionals and finance executives tracking capital market developments, the SpaceX listing illustrates how limited public float combined with index inclusion demand can drive outsized price moves. The heavy options volume and dealer hedging dynamics present both opportunities and risks for institutional investors managing equity exposure in volatile, high-growth names. The absence of trade finance or FX implications in this story reinforces that this is a pure equity capital markets event.
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