SpaceX set to surpass Amazon’s market cap as IPO hype continues to surge

The shares of the Elon-Musk owned company SpaceX significantly rose more than 10 percent in premarket trading on Tuesday. 

While this major surge puts the company on track to surpass Amazon in market value to become the world’s fifth-largest company, extending its post-IPO rally.

The stock, which soared more than 19 percent on Monday, was up 10.1 per cent at $211.8, giving the company’s outstanding market capitalization of nearly $2.8 trillion if gains hold.

Notably, more than $1.16 billion worth of SpaceX shares reportedly exchanged changes as of 04:14 a.m. ET, which was several times the trading volumes of Nvidia, Microsoft, Tesla and Apple.

Earlier, SpaceX was all set for its unprecedented $75 billion market debut with great fanfare, signaling a vital push for traders and brokers to make sure their trading systems can seamlessly handle the historic IPO while avoiding the chaos and technical hurdles.

A common IPO primarily means that the exchange collects incoming buy and sell orders before trading begins, which allows investors to cancel orders repeatedly and place new ones at different prices.

Finance professionals closely monitor those orders and delay the launch until reaching the optimal price where supply meets demand. 

SpaceX presents a myriad of risks to those who buy its public stock; meanwhile weak corporate governance is entirely in Musk's control, as well as hard to evaluate goals such as colonizing Mars, and putting data centers in space. 

The upcoming IPO looks like it will bring a massive windfall for SpaceX’s early investors and employees.

On social platform X, the current announcement sparked a wave of intriguing comments with one user writing, “SpaceX keeps the promises it made to investors. Meeting the enormous growth expectations built into this valuation will be their biggest test yet.”

The second user said: “They’re so afraid of what we did to this planet, responsible people want to try to fix it.”

All eyes on SpaceX to see if it will keep the promises it made to investors. The economic growth expectations built into this valuation will be one of its biggest tests yet.