SpaceX overtakes Amazon in value to become 5th largest stock in world
SpaceX’s shares surged 4.8% on their third trading day, briefly making it the world’s fourth-largest company by market cap ($2.65 trillion) before settling as the fifth-largest, surpassing Amazon ($2.64 trillion) and trailing Microsoft. The rally was fueled by limited public float (4.2% of shares), retail investor demand, and expectations of future index inclusion, though revenue ($18.7 billion in 2025) lags behind peers like Amazon ($717 billion).
SpaceX’s stock price jumped 4.8% on Tuesday, pushing its market capitalization to $2.65 trillion and temporarily making it the world’s fourth-largest company by value before closing as the fifth-largest, overtaking Amazon at $2.64 trillion. At its intraday peak, SpaceX’s valuation briefly exceeded Microsoft’s, reflecting strong investor demand despite limited shares available for trading—only about 4.2% of the company’s stock was accessible on its debut. The surge follows SpaceX’s record IPO, with shares up 49% from their $135 debut price, easing concerns about market absorption. Retail traders accounted for a significant portion of the buying activity, purchasing more SpaceX stock in its first two days than the entire U.S. market saw last week, according to Vanda Research. Options trading also spiked, with over 1.6 million lots exchanged as traders bet on further gains. SpaceX announced a $60 billion deal to acquire AI coding startup Cursor, with investors receiving SpaceX stock based on Cursor’s implied equity value. The acquisition underscores SpaceX’s expansion beyond aerospace into AI, a sector poised for high-profile public offerings this year, including Anthropic and OpenAI, both targeting $1 trillion valuations. Despite its massive market cap, SpaceX’s revenue of $18.7 billion in 2025 pales in comparison to peers like Microsoft ($281.7 billion) and Amazon ($717 billion). Nasdaq’s rule changes allowing faster index inclusion for large IPOs could further boost SpaceX’s stock, as passive funds may be forced to buy shares if included in indices. However, S&P Dow Jones Indices has not adjusted its rules, delaying potential S&P 500 inclusion. Analysts cite SpaceX’s limited public float and upcoming index considerations as key drivers of volatility. Dave Mazza of Roundhill Financial noted that passive fund demand meeting minimal supply could amplify price swings. Options trading is also expected to add momentum, as market makers hedge exposure by buying shares, potentially driving further rallies.
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