SpaceX surpasses Amazon’s market cap

Shares of Elon Musk’s SpaceX rose more than 11% today, sending its market valuation above Amazon.com and making it the world’s fifth-most valuable company.

Shares of the rockets-to-AI company were last up 11.7% at $215, jumping almost 60% above the $135 IPO price and giving the company a market capitalisation of around $2.82 trillion if gains hold.

Amazon’s valuation stands at $2.66 trillion, Microsoft’s at $2.91 trillion, and the world’s top three companies exceed $4 trillion in market value.

“We can say with certainty that this valuation makes absolutely no sense today. People are buying SpaceX in the expectation that others will buy too and push the price higher – that’s speculation,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

The company reported sales of $18.67 billion last year and a net loss of $4.94 billion after merging with money-losing xAI – in contrast to many of Wall Street’s big technology companies that have posted bumper numbers.

SpaceX options activity also began trading today.

“Today the SPCX options launch, offering standard monthly expiration and strikes ranging from $25 to $380. If call demand is heavy, dealers might be forced to buy SPCX into this low-liquidity situation,” said Brent Kochuba, founder of option analytics platform SpotGamma.

“Starting next week we may see index demand increase, with more shares not slated to be made available for 1-2 months.”

Analysts and portfolio managers said investors should brace for volatility, particularly early on in SpaceX’s life as a public company, due to its relatively small float and high valuation.

The rally could continue as SpaceX is set for fast-track inclusion in the Nasdaq 100, which will soon make it a major holding for passive funds and ETFs that track the index, creating a fresh source of demand for its shares.

FTSE Russell and MSCI are also set to add the stock to their indexes, effective June 26 and June 29, respectively.

“While index inclusion alone is typically insufficient to drive sustained repricing, we see the combination of passive flows, momentum, and limited float driving upside beyond historical index-addition moves,” brokerage Zephirin Group said, initiating coverage on the stock with a “buy” rating.

SpaceX also said yesterday that its underwriters had exercised the “greenshoe” option to purchase additional shares, increasing the total proceeds from its initial public offering to $85.7 billion from $75 billion that it raised last week.

More than $9.1 billion worth of SpaceX shares exchanged hands today, which was several times the trading volumes in Nvidia, Microsoft, Tesla and Apple combined.

Other heavyweight technology stocks, including Nvidia and Microsoft, were trading slightly lower.

SpaceX to buy Cursor AI coding agent operator Anysphere for $60 billion

Elon Musk’s SpaceX said today it would acquire Anysphere, the software firm behind the popular AI coding agent Cursor, for $60 billion, in a bid to ramp up its foothold in the enterprise AI market.

The announcement comes just days after Musk took his rockets-to-AI company public in a blockbuster Nasdaq debut that valued the firm at more than $2 trillion and immediately made it one of the world’s most valuable companies.

SpaceX said it expects the merger to close during the third quarter of 2026.

Along with OpenAI and Anthropic, Cursor is one of several Silicon Valley startups that have drawn waves of developers by using artificial intelligence to automate coding, a business where AI companies have found early commercial traction.

The deal could give xAI, the Grok chatbot maker that SpaceX merged with in February, a stronger foothold in the AI coding market where it has so far lagged rivals. It also provides Cursor with more computing capacity to develop AI models.