SpaceX is already worth more than Amazon

Like the owners of a so-called teacup pig, Wall Street is looking at SpaceX and asking, “Is this thing ever going to stop growing?”On its first full trading day as a public company on Monday, the company’s stock jumped 20%, before rising another 12% yesterday, surpassing Amazon and briefly leapfrogging Microsoft to become the fourth-largest company by valuation at $2.94 trillion. It ended up rising just under 5% Tuesday, ending at $2.65 trillion, slightly ahead of Amazon but behind Microsoft.SpaceX’s heavily hyped stock has grown nearly 49% from its $135 IPO price last week as retail investors pour in despite warnings by some analysts that the company is overvalued. (SpaceX is the only one among the top seven most valuable companies that lost money last year.)On Monday, SpaceX made up almost 75% of all single stock purchases for retail traders, according to Vanda Research.Retail investors have bought more SpaceX stock since its IPO than they’ve bought all other stocks combined.Big betElon Musk, who became the world’s first trillionaire following SpaceX’s IPO, said Sunday on X that he sees the company making $1 trillion in revenue by 2030…which would be a long way from the $18.7 billion it brought in last year. SpaceX makes most of its money from its connectivity unit (aka its Starlink satellite internet provider), which made $1.19 billion in Q1. Its space unit lost $619 million, while its AI unit lost $2.5 billion.Big picture: SpaceX, like everyone else, is trying to win the AI arms race by shoveling more billions into the technology. The company announced yesterday that it officially agreed to acquire AI coding startup Cursor in a $60 billion all stock deal. Cursor, headed by 25-year-old CEO Michael Truell, will be tasked with helping SpaceX’s flailing xAI catch up to Anthropic and OpenAI’s stranglehold on enterprise clients.—MM