SpaceX, the rocket and satellite company led by Elon Musk, made a spectacular debut on the Nasdaq on Friday, with shares surging over 19% in their first day of trading. The stock, trading under the ticker SPCX, closed just above $161 after being priced at $135, giving the company a market capitalization of approximately $2.1 trillion. The IPO raised $75 billion, more than double the amount raised by Saudi Aramco in its 2019 offering, according to Reuters.
The strong debut underscores the immense investor appetite for SpaceX, which has long been one of the most anticipated private companies to go public. The stock opened at $150, touched a high of nearly $168, and closed at $161.12, lifting Musk's estimated net worth past $1 trillion, according to the Associated Press.
Retail Investors Play Key Role
Retail investors played a significant role in the offering, receiving an unusually high 20% of the IPO shares, according to Reuters. This allocation is notable for such a large deal and reflects the strong demand from individual traders who have been closely watching the SpaceX IPO. Business Insider reported that interest from regular traders was high even before trading began.
The first-day surge highlighted the excitement—and the risks—associated with hot IPOs. Dan Coatsworth, head of markets at AJ Bell, told Reuters, "When the starting valuation is already pushing $2 trillion, adding that much value at the click of a finger is impressive."
Valuation and Growth Plans
SpaceX's valuation has been a topic of heated debate. The company reported $18.7 billion in revenue for 2025, but its market cap implies a price-to-revenue multiple well above other mega-cap companies. Morningstar analysts told Reuters that a fairer value would be around $780 billion, while CFRA initiated coverage with a sell rating.
The company plans to use the proceeds from the IPO to fund its growth, including its satellite internet business, launch operations, and other long-term space projects. According to its European prospectus summary, SpaceX expects net proceeds of around $74.4 billion from the base offering, and up to $85.7 billion if underwriters exercise their option for additional shares. The prospectus also noted that the company's dual-class share structure will concentrate most voting power in the hands of Musk and other Class B shareholders.
Market Impact and Trading Details
SpaceX's debut had a notable impact on other space and satellite stocks, with investors shifting money into the new listing, Reuters reported. The stock is listed on the Nasdaq and Nasdaq Texas exchanges.
Retail investors eyeing IPOs should be aware of the risks. Fidelity reminds clients that new issues can drop below their offer price after trading begins, and IPO shares are often limited or unavailable for individual investors. The company advises reviewing the preliminary prospectus and following eligibility requirements.
SpaceX's successful debut could reignite interest in other private companies considering IPOs, but it also serves as a reminder that IPO investing carries unique risks. As Musk stated at the opening of trading, the company's goal is "to make life multiplanetary," according to the Associated Press.
