Broader aerospace and satellite stocks move sharply after the listing
SpaceX shares surged in their Nasdaq debut on Friday, climbing 19% after a record-setting initial public offering that valued the company at more than US$2 trillion and briefly positioned it among the largest listed firms in the US.
The stock opened at US$150 per share and traded higher throughout the session, ending at US$160.95. The move lifted SpaceX’s market capitalization to roughly US$2.1 trillion, placing it ahead of Broadcom and moving it closer to Amazon, which stands at about US$2.6 trillion in market value. More than 510 million shares changed hands during the session, with total trading value estimated at about US$84 billion, Reuters reported.
The listing followed a $75 billion IPO, described by market participants as the largest in US history, surpassing Saudi Aramco’s 2019 debut. Investor demand was broad-based, spanning large institutional funds and retail investors, who were allocated roughly 20% of shares—an unusually high share for a major listing. Reuters reported that some retail participants received only a single share amid heavy demand.
“Seeing the company that I joined when it was just some sketches on paper become this valuable is almost surreal,” said Tom Mueller, a founding SpaceX employee and current CEO of Impulse Space.
Elon Musk, SpaceX’s chief executive, became the world’s first trillionaire on paper after the debut, Reuters noted. The company’s early performance was celebrated at the Nasdaq MarketSite in New York, where senior executives including president Gwynne Shotwell participated in the opening ceremony, while Musk joined virtually from Texas.
Early trading and valuation concerns
Despite strong debut trading, analysts pointed to structural risks tied to valuation and profitability. SpaceX generated about $18.7 billion in revenue but remains unprofitable, implying a price-to-revenue ratio near 112—significantly above many megacap technology peers. Analysts at firms including CFRA initiated coverage with cautious or negative views, while Morningstar analysts suggested a more conservative valuation closer to $780 billion.
Market observers also pointed to potential volatility driven by a relatively small float and early-stage price discovery. Some analysts warned that near-term trading could be influenced more by momentum and sentiment than fundamentals.
Index inclusion and passive fund flows
Attention has shifted to the stock’s expected addition to the Nasdaq-100 under accelerated fast-entry rules, which could occur within about a month. Analysts say inclusion could trigger automatic buying from index funds and exchange-traded funds tracking the benchmark, creating a new source of demand beyond initial IPO enthusiasm.
“The question remains is, what happens in a couple of weeks from now. Right now, people want to bid the stock higher because it’s a winner at this point,” said Todd Schoenberger, chief investment officer at Crosscheck Management
Some analysts warned that expectations around index-linked buying may already be reflected in the stock’s initial surge, raising uncertainty about follow-through demand once technical flows stabilize.
Broader market and sector impact
Broader markets reflected mixed reactions. Shares of other space and satellite firms fell on the debut day, including double-digit declines among smaller peers, as investors reassessed valuations across the sector, Reuters reported.
Market strategists have also pointed to wider implications for equity markets, noting that large-scale listings may be drawing liquidity toward mega-cap growth names at a time when interest rate expectations and inflation trends remain uncertain. Some analysts warn that this concentration effect could increase volatility in technology-heavy indices.
