SpaceX, the aerospace manufacturer and space transportation services company, experienced an extraordinary $US122 billion ($173 billion AUD) surge in market valuation in a single day on Wall Street. The firm, also developing significant satellite communications and an emerging artificial intelligence division, saw shares briefly rise 17 per cent, pushing its market capitalisation to a peak of $US2.97 trillion. This momentarily eclipsed tech giants Amazon ($US2.64 trillion) and Microsoft ($US2.93 trillion). Closing up 4.8 per cent at $US2.65 trillion, SpaceX shares have climbed an impressive 49.4 per cent in three sessions since its listing last Friday, debuting at $US1.75 trillion.
This burgeoning valuation draws attention, particularly when contrasted with current financials. SpaceX reported revenue of $US19 billion last year, alongside a $US9 billion loss. In stark contrast, Amazon saw sales of $US743 billion and net income of $US98 billion; Microsoft achieved $US318 billion in sales and $US125 billion in net income. Trading at 140 times sales—a significant premium to Google’s 24 times at its 2004 IPO—analysts suggest a substantial portion of SpaceX’s value, estimated near $US2 trillion, is tied to its largely unproven AI business, recently bolstered by the $US60 billion all-stock acquisition of vibe coding firm Cursor.
Market observers attribute the rapid surge to momentum and market mechanics, with limited share float intensifying buying frenzy. Of 555 million shares issued in its IPO, a staggering 320 million changed hands in a single Tuesday session. This reflects a ‘risk-on’ investor mood, eager to participate. While SpaceX’s initial three days as a public company have been historically spectacular, the chequered record of high-profile IPOs on Wall Street, often seeing median floats down significantly after a year, suggests the coming months will be keenly watched.
