Anyone else feel like you’re at an auction with SpaceX (SPCX)? The stock came public at $1.8 trillion, and now some guy with a gavel is saying: “That’s $2 trillion to you sir. Do I hear $3? $3 trillion going once? You got it. How about $4?”
Yesterday, shares of the rocket launch and AI company rose as much as 17% before closing up 4.8%. That followed a 19.6% jump on Monday and a 19.3% rise from its IPO price on Friday.
The follow-on gains pushed SPCX’s market capitalization to almost $3 trillion – making SpaceX the fifth-most valuable company traded in the world behind Microsoft Corp. (MSFT) and ahead of Amazon.com Inc. (AMZN), as you can see in the MoneyShow Chart of the Day.
Source: Bloomberg
It’s worth noting that only 4.2% of the company’s total shares are now publicly traded. By selling only a small slice of the company, SpaceX virtually ensured the stock would see solid aftermarket demand. Lockup expirations in the coming weeks and months will result in more shares hitting the market, easing some of the quasi-artificial shortage.
But retail buying has been particularly strong for the marquee name. SpaceX added to the market buzz by announcing a $60 billion takeover of AI coding company Cursor on Tuesday. Plus, billions of dollars in passive ETF money will be flowing into SPCX stock before long because the company will get added to indices like the Nasdaq-100.
Bottom line? The initial buying interest was strong. Now, the follow-on buying has been strong. But as always, the longer-term outlook is what’ll really matter to most investors once the FOMO factor and momentum chasing dies down.
