SpaceX Shares Jump in Second Day of Trading After Record IPO

SpaceX shares jumped in their second day of trading, adding to gains following a blockbuster debut that instantly vaulted it into the ranks of the world’s most valuable public companies.

The stock climbed as much as 8.7%, extending Friday’s 19% rally. The move boosts the company’s market value to more than $2.2 trillion, putting it among the top six largest companies in the world. At its current market capitalization, it’s roughly $400 billion away from overtaking Amazon.com Inc., which boasts a nearly $2.7 trillion value.

SpaceX has exercised the IPO’s over-allotment option, which lets underwriters sell an additional 83.3 million shares, according to a statement Monday. The so-called greenshoe increases the amount raised to $86.2 billion, or $85.7 billion less the $500 million of underwriting expenses listed in the prospectus.

A solid first-day performance for SpaceX assuaged fears about the market’s ability to absorb such a large IPO, helping pave the way for the potential IPOs from Anthropic PBC and OpenAI, large competitors that could go public as soon as this year. It helped bolster confidence in the artificial intelligence rally that’s driven most of the market’s gains this year.

“The positive SpaceX debut and investor reception is a good sign for OpenAI and Anthropic as both companies likely head down the IPO path before year-end,” Wedbush Securities analyst Dan Ives wrote in a note to clients.

Following the steady launch, investors are turning attention back to the broader geopolitical and macro backdrop after the US and Iran said they agreed to a deal to reopen Hormuz this week. In addition, Wednesday’s Federal Reserve meeting, followed by the first press conference for the central bank’s new chairman, Kevin Warsh, is top of mind.