Quick overview

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SpaceX surged for the third day in a row, surpassing Amazon. com in value to rank as the world’s fifth-largest stock. Its market capitalization reached $2.65 trillion, about $8 billion more than that of Amazon, after shares closed 4.8% higher.

Elon Musk’s rocket and artificial intelligence company’s market value surpassed Microsoft Corp.’s at the stock’s intraday high. to momentarily rise to the fourth-largest stock in the world.

Only about 4.2% of SpaceX shares were available for trading on day one, which has contributed to at least some of the price movement since the company’s launch. This may increase trading volatility and make the stock more vulnerable to significant fluctuations that could swiftly alter its market value.

Fears that the record IPO would be too big for the market to handle have been allayed by the gains in SpaceX shares, which are up 49% from their $135 IPO price. The results set the stage for rival artificial intelligence companies Anthropic PBC and OpenAI, both anticipated to be valued at $1 trillion, to make possible IPOs this year.

SpaceX formally agreed to acquire Cursor, the AI coding startup. According to a company filing, investors in Cursor will be entitled to SpaceX stock based on the implied equity value of Cursor. What started as a rocket startup is now a major wager on Mars, AI, and satellites.

The IPO of SpaceX, which is expected to be valued at least $1.8 trillion, has the potential to change markets. But is Wall Street moving too quickly? During SpaceX’s first two days of trading, retail traders bought as much of the company’s stock as they bought across the board.