SpaceX’s stock has extended its explosive post-IPO rally, climbing another 4% in early trading on Friday, building on a blockbuster 19% jump in the previous session. The continued surge reflects outsized investor demand for the aerospace giant, which has now more than doubled from its initial offering price within its first week of trading.
Shares opened at $184.20, up from Thursday’s close, pushing the company’s market capitalization above $1.7 trillion. The frenzied buying comes after SpaceX priced its IPO at $85 per share on Monday, raising over $15 billion in the largest public offering in history. The stock’s meteoric rise has stunned Wall Street, with analysts scrambling to revise price targets.
"The market is clearly pricing in a premium for SpaceX’s dominant position in space launch and its Starlink internet business," said an analyst at a major investment bank, who asked not to be named because the firm is not authorized to comment. "But the speed of the move is extraordinary, even by tech IPO standards."
Trading volumes have been elevated, with more than 50 million shares changing hands by midday Friday, according to data from Bloomberg. Retail investors have been a major force, fueled by social media chatter and the inability to buy SpaceX shares on the private market before the IPO.
The rally has also lifted shares of space-related peers. Virgin Galactic (SPCE) rose 3% on Friday, while AST SpaceMobile (ASTS) gained 5%. The broader market was little changed, with the S&P 500 flat.
SpaceX, which has been profitable for the past year, reported $12 billion in revenue and $2.5 billion in net income in 2024, according to the prospectus. The company’s Starlink division now has over 4 million subscribers and is expected to be a key growth driver. However, some fund managers caution that the valuation is stretched.
"SpaceX is a great company, but at $1.7 trillion? That’s more than Tesla or Meta," said a portfolio manager at a hedge fund that declined to be identified. "We’re taking some profits here."
The IPO’s underwriters have not yet exercised their greenshoe option to issue additional shares, which could help stabilize the stock. A spokesperson for SpaceX declined to comment on the stock move.
Correction: An earlier version of this article misstated the IPO price. It is $85, not $90.