SpaceX valuation balloons to $2.6T, briefly passes Amazon

In a remarkable turn of events, SpaceX briefly surpassed Amazon to become the fifth-most valuable company globally, almost overtaking Microsoft, before experiencing a market correction on Tuesday. The newly public company saw its stock soar by 20% on its first full trading day, which set the stage for an exciting week. The announcement that SpaceX would acquire AI coding firm Cursor, coupled with the initiation of options trading for its shares, propelled its valuation to an astonishing $2.9 trillion. However, the stock price retracted before the market closed, reflecting volatility in investor sentiment. Despite posting a staggering $4.9 billion loss against $18.7 billion in revenue last year, SpaceX's potential to diversify its income through new partnerships is a beacon of hope. The company has secured compute leasing agreements with Anthropic and Google, which, while non-binding, have garnered investor interest. The acquisition of Cursor is expected to further enhance its revenue picture once finalized in the third quarter. Since going public, SpaceX has added approximately $1 trillion to its valuation, drawing nearly $86 billion in new capital. This influx is largely tied to ambitious projections that the company can cultivate a trillion-dollar AI business, a bold assertion for a firm that recently reconstructed its AI division. The IPO launched SpaceX with an initial valuation of around $1.7 trillion, with only about 4% of its shares made available for trading. Analysts warned that this limited float would likely lead to significant price fluctuations, a prediction that played out as more than 300 million shares changed hands during the trading day—over half of the total 555 million shares available post-IPO. The trading frenzy continued into after-hours, with SpaceX’s valuation once again eclipsing Amazon's market cap before settling down.