SpaceX stock (SPCX) jumped nearly 8% in early trading, showing very strong buying interest right after the market opened. In just two days since its stock market debut on Friday, SpaceX shares have gone up more than 25% in total, which is a very fast rise for a newly listed company.
SpaceX IPO growth
The company originally sold 555.6 million shares to investors and raised about $75 billion in its IPO, which was already one of the biggest public offerings ever. On Monday, SpaceX confirmed it actually raised $85.7 billion in total because underwriters used the “green shoe option,” adding another 83,333,333 shares to meet high demand.
Experts say demand for SpaceX stock is very strong, and it looks like a “momentum stock,” meaning people are buying it mainly because the price is rising quickly, as reported by Yahoo Finance. Some market watchers also warned that even though the stock is rising fast, it could also become very volatile, meaning the price may move up and down sharply.
Momentum buying, risk & market volatility warning
Wedbush analyst Dan Ives said via Yahoo Finance, SpaceX going public is a major turning point for the tech industry and shows how the AI and data revolution is moving into a new phase. He also said this IPO could lead to more money flowing into tech companies and may even help future IPOs from companies like Anthropic and OpenAI.
{{/usCountry}}Wedbush analyst Dan Ives said via Yahoo Finance, SpaceX going public is a major turning point for the tech industry and shows how the AI and data revolution is moving into a new phase. He also said this IPO could lead to more money flowing into tech companies and may even help future IPOs from companies like Anthropic and OpenAI.
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SpaceX’s early market value is so large that it is already about $700 billion bigger than Tesla and more than twice the size of Berkshire Hathaway, according to Bespoke Investment cited by Yahoo Finance.
Retail and big investors drive rally
A big reason for the stock’s strong rise is everyday traders, who have been actively buying SpaceX shares since listing. Some reports suggest retail investors may be selling other stocks to raise money to buy SpaceX shares instead.
Along with retail investors, big institutional investors and family offices also played a major role in pushing SpaceX stock higher on its debut. Investor Ron Baron, a long-time supporter of Elon Musk, said he added $1 billion worth of SpaceX shares during the IPO process, taking his total stake to $25 billion, as noted by Yahoo Finance.
The Wall Street Journal reported that Australian mining billionaire Gina Rinehart also bought more than $1 billion worth of SpaceX stock through her company Hancock Prospecting, marking a major outside investment.