Musk's SpaceX overtakes Amazon to become world's fifth most valuable firm

Elon Musk’s SpaceX has overtaken Amazon to become the world’s fifth most valuable company, with its market value hitting $2.78 trillion after a 50% share price surge since its Nasdaq debut. The listing raised $85.7 billion, making Musk the first trillionaire, though shares jumped from $135 to $209 in days. Analysts question the sustainability of the valuation, given SpaceX’s $4.3 billion first-quarter loss in 2026, compared to Amazon’s $30.3 billion profit and $716.9 billion in annual sales. The rise reflects investor enthusiasm for SpaceX’s long-term vision, including AI data centers in space and Mars colonization, alongside its rocket and Starlink satellite businesses. The company also announced a $60 billion acquisition of AI coding startup Cursor, part of Anysphere, to strengthen its AI capabilities. Cursor’s technology automates code-writing and is used by firms like Stripe, Adobe, and Nvidia, whose CEO Jensen Huang called it his ‘favorite enterprise AI service.’ SpaceX and Cursor have collaborated since April, with SpaceX holding an option to acquire Cursor for $60 billion or pay $10 billion for joint work. The deal, expected to close by September, will use SpaceX shares to compensate Cursor’s shareholders. The acquisition aligns with SpaceX’s push into AI, competing with its subsidiary xAI, which developed the Grok chatbot. Despite the valuation leap, only 4% of SpaceX’s shares are freely tradable, raising concerns about future dilution if institutional investors sell. Analysts warn smaller shareholders may face higher costs later, while others see the stock as a ‘well-marketed opportunity’ tied to Musk’s vision rather than financial fundamentals.