Shares of SpaceX climbed sharply on Tuesday, pushing the company’s market capitalisation to around $2.75 trillion and surpassing Amazon in value. The stock was last trading 8.7 per cent higher at $209.30, more than 54 per cent above its initial public offering price of $135.

The rally places the rockets-to-artificial intelligence company among the world’s most valuable firms. Amazon’s market capitalisation currently stands at $2.65 trillion, while Microsoft is valued at approximately $2.92 trillion.

SpaceX Becomes One of World’s Most Valuable Companies

The surge in SpaceX shares has propelled the company into the ranks of the world’s biggest corporations, with only a handful of firms exceeding the $4 trillion valuation mark.

The company, however, remains far from matching the financial performance of several technology giants, having reported revenue of $18.67 billion last year and a net loss of $4.94 billion.

The losses largely reflect the impact of its merger with artificial intelligence company xAI, which was also operating at a loss.

Analysts Question Valuation

Market experts cautioned that the current valuation may not be supported by fundamentals.

Ipek Ozkardeskaya, senior market analyst at Swissquote Bank, said investors appeared to be buying shares in anticipation of further price increases rather than based on current earnings.

She argued that the rally reflected speculative sentiment, with expectations that additional investors would continue driving the stock higher.

Options Trading Begins

Options linked to SpaceX shares also began trading on Tuesday, introducing another source of volatility for the stock.

According to Brent Kochuba, founder of options analytics platform SpotGamma, heavy demand for call options could force market makers to purchase additional shares in a relatively illiquid market.

He said this dynamic could further amplify price movements, particularly in the near term.

Index Inclusion May Create Fresh Demand

Analysts and fund managers said SpaceX could receive additional support from upcoming index inclusions.

The company is expected to join the Nasdaq 100 through a fast-track process, making it a significant holding for exchange-traded funds and passive investment vehicles that track the index.

FTSE Russell and MSCI are also set to include the stock in their indices later this month, potentially generating another wave of institutional demand.

Limited Float Could Add to Volatility

Brokerage firm Zephirin Group said the combination of passive fund inflows, momentum-driven buying and a limited number of shares available for trading could support further gains.

However, analysts warned that the relatively small public float could also result in sharp swings in the stock price, particularly during the early months following the listing.

Investors have been advised to brace for heightened volatility as trading volumes remain elevated.

IPO Proceeds Rise After Greenshoe Exercise

SpaceX announced on Monday that its underwriters had exercised the greenshoe option to purchase additional shares, increasing the proceeds from its initial public offering to $85.7 billion from the $75 billion raised last week.

More than $9.1 billion worth of SpaceX shares had changed hands by mid-morning on Tuesday, exceeding the combined trading volumes of Nvidia, Microsoft, Tesla and Apple.

Despite the strong performance, SpaceX shares pared some of their premarket gains after the company announced plans to acquire software company Anysphere in a deal valued at $60 billion.

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