Day 3 of trading. Day 3 of mega gains for SpaceX.
Shares in Elon Musk's rocket company jumped in early trading on Tuesday, adding to the near 20% gains seen in both its first and second days of trading.
With a price of $214 by early afternoon — up 11% from its $192.50 closing price on Monday — SpaceX's market capitalization jumped to just shy of $2.8 trillion, rocketing it ahead of Amazon, and making it the 5th-most valuable company in the world.
In the first hour of trading, SpaceX's market cap briefly overtook Microsoft's, making it the 4th-most valuable company, but it soon pared those gains.
SpaceX, which trades under the ticker SPCX, went public in the largest IPO in history on Friday, raising an initial $75 billion at a valuation of around $1.8 trillion. On Monday, it revealed that the banks underwriting the IPO had exercised a so-called greenshoe option, adding another $10 billion to the total raised.
At the close on Monday, SpaceX's market capitalization had climbed to just over $2.5 trillion, making it the 6th-most-valuable company in the world, ahead of corporate titans like Broadcom, Meta, and Berkshire Hathaway. Its valuation is now more than $1 trillion higher than that of Musk's other listed company, Tesla.
More on the SpaceX IPO
SpaceX's monumental rally in its first 3 days of trading has split opinions in the market. As Business Insider's Joe Ciolli wrote in his "First Trade" newsletter on Monday, some point to Musk's leadership and SpaceX's technological advantage as reasons the rally is justified. Others argue it is overblown.
One analyst dubbed it "the biggest meme stock in town."
"It is a probably speculative bubble (though in theory, it is not a bubble until it bursts)," Ipek Ozkardeskaya, senior analyst at Swissquote, wrote in a Tuesday morning email.
"People are buying SpaceX in the expectation that others will buy too and push the price higher — that's speculation. The risk is that one day, someone will say, 'Hey, the Emperor is naked,' and on that day, the company's fundamentals won't be there to stop the sell-off," she added.
That view was shared by CNBC's Jim Cramer, who also said SpaceX was trading like a meme stock.
Also on Tuesday, SpaceX announced that it would buy AI coding startup Cursor for $60 billion.
This week, Business Insider profiled Michael Truell, the 25-year-old Cursor cofounder and CEO, who told employees the potential merger with SpaceX was "a big risk, or a big bet, that we're making."
