SpaceX Unprecedented Share Rally Briefly Pushes Firm Past Amazon In Market Value

After a blockbuster initial public offering (IPO), SpaceX continues to reward investors, delivering returns of more than 40% in less than a week since its market debut on June 12. Shares of Elon Musk’s rocket and space technology company have surged from $135 at listing to as much as $209, before declining eventually.

On Tuesday, SpaceX shares rose 4.8% to close at $201.82 a piece, valuing the company at roughly $2.66 trillion. This added about $800 billion to its market value since the IPO and helped it overtake Amazon to become the fifth-largest US-listed company by market capitalisation. However, Jeff Bezos’ retail and media empire was able to reclaim its 5th rank after SpaceX shares declined about 5% to close at $192 a piece on Wednesday.

Currently, data from TradingView shows that Amazon remains the world's fifth most valuable company with a market capitalisation of about $2.63 trillion, while SpaceX stood close behind at about $2.44 trillion.

Market Volatility in SpaceX Shares:

SpaceX shares closed at $201.82 on Tuesday after a volatile trading session marked by heavy activity in newly listed options contracts. The fresh rise before Wednesday's decline followed after the company announced its $60 billion deal to acquire AI coding startup Cursor’s parent company, Anysphere.

However, Wednesday’s reversal is being seen as an initial test of whether retail investor demand can sustain the company’s high valuation. Investors appear to be enthusiastic about SpaceX’s long term plans. This includes its vision of AI infrastructure in space and future Mars colonisation goals.

Meanwhile, analysts and market experts remain cautious. The IPO raised $85.7 billion, making Musk the world’s first trillionaire, but concerns over valuation persist. Despite SpaceX briefly overtaking Amazon in market value, the gap in fundamentals differ vastly. Amazon reported $30.3 billion profit in Q1 2026, while SpaceX posted a $4.3 billion loss. In 2025, Amazon generated $716.9 billion in sales compared to SpaceX’s $18.67 billion.

Due to these aspects, analysts largely remain concerned about potential price pressure if institutional investors sell, which could leave smaller shareholders paying a premium.

How SpaceX Raised More Than Initial Target:

Another aspect going viral about the newly listed private tech player is that SpaceX raised a total of $85.7 billion. This is about $10 billion more than initially reported. The additional funds came after banks involved in the listing exercised something known as the "greenshoe" option. This allowed them to sell extra shares due to strong investor demand in the IPO to stabilise the trade and prevent wild swings.

Investor Frenzy Continues Despite Challenges:

Before the listing, SpaceX saw strong demand, with orders reportedly over four times the available shares. The demand has continued even after listing.

According to Vanda Research, individual investors have bought more SpaceX stock than any other name on every trading day since the offering. The firm said that in total, retail investors purchased about $369.8 million worth of shares in three sessions, far higher than buying in QQQ [NASDAQ ETF] and Nvidia over the same period.

The roaring success of SpaceX’s IPO and its debut has not been without hurdles. Even as the company broke many records, including becoming the first US market debut to cross a $1 trillion valuation, it won’t be included on the popular S&P 500 benchmark index anytime soon.

S&P Global, the US financial analytics firm known for the S&P 500 index, has ruled out SpaceX’s fast-track entry. It noted that exceptions should not be made based only on market capitalisation, as profitability is also an important requirement for inclusion.

It remains to be seen how quickly SpaceX can deliver on its long-term plans. In its IPO filing, the company has shared a vision of using solar energy to power AI systems and support a multi-planetary future. However, the filing also flagged losses and lower AI spending compared to its rivals.

Another challenge is that several of SpaceX’s projects depend on unproven technologies. Plus, the company is heavily dependent on Musk’s leadership, which carries enormous influence over its strategy and future direction.