SpaceX surges 20% in second day to add $412 billion in value

SpaceX’s stock price climbed 20% on its second day of trading, extending Friday’s 19% rally and adding $412 billion in market value. Shares closed at $192.46, up more than 42% from the $135 IPO price, lifting the company’s total valuation to over $2.5 trillion. This places SpaceX among the world’s top six largest companies, just $135 billion behind Amazon’s $2.7 trillion valuation. The company sold 555 million shares at $135 each, raising $75 billion, with an additional 83.3 million shares sold via the over-allotment option. This increased the total proceeds to $86.2 billion, or $85.7 billion after underwriting expenses. The IPO’s strong performance eased concerns about market absorption for large offerings, potentially paving the way for future AI-related IPOs like Anthropic and OpenAI. Retail investors drove much of the demand, purchasing more SpaceX stock in its first two days than they did across the entire U.S. stock market the previous week. The IPO also cemented Elon Musk’s status as the world’s first trillionaire, with his net worth exceeding three times that of the second-richest person, Google co-founder Larry Page. Market analysts noted the positive reception but warned of potential volatility as shares currently locked up for insiders become tradable. They also highlighted broader market trends, including a geopolitical agreement between the U.S. and Iran to reopen the Strait of Hormuz and an upcoming Federal Reserve meeting, which could influence investor sentiment. Options trading for SpaceX stock will begin soon, adding another layer of market activity. Analysts suggested that while retail demand has been strong, the stock may face downward pressure once institutional investors and employees begin selling post-lockup.