Weekly Wisdom: SpaceX IPO Takes Flight

SpaceX IPO Ignites Investor Demand

The largest IPO in history has quickly become one of the market’s biggest success stories. Just weeks after filing to raise $75 billion at a valuation above $2 trillion, SpaceX has exceeded even the most optimistic expectations. Shares surged more than 40% during the company’s first two trading sessions and continued climbing throughout the week, pushing its market capitalization to nearly $2.9 trillion and allowing it to surpass Amazon as one of the largest publicly traded companies in the world.¹ The strength of the move is particularly notable because many investors questioned whether markets could absorb an offering of this size. Instead, demand has remained exceptionally strong, demonstrating that investors continue to aggressively allocate capital toward transformational technology platforms.

Much of the enthusiasm reflects the unique nature of the SpaceX business model. As we discussed in our previous Weekly Wisdom on SpaceX, the company sits at the intersection of several of the most important secular growth themes in the global economy, including artificial intelligence, satellite communications, launch infrastructure, global internet connectivity and advanced computing. The company generated $18.7 billion in revenue during 2025 while continuing to invest heavily across Starlink, xAI, and Starship development.² Investors increasingly appear willing to look through the current investment cycle and focus on the long-term opportunity. Similar to how investors embraced Amazon during the buildout of cloud computing infrastructure, markets are rewarding SpaceX for aggressively investing in technologies that could define the next decade of economic growth.

Perhaps most impressive has been the breadth of participation. Retail investors purchased as much as $94 million in SpaceX stock accounting for 70% of all retail net buying during its first two trading days.³ Strong institutional demand has also helped alleviate concerns that the record-breaking offering would drain liquidity from other areas of the market. Instead, SpaceX has quickly become the centerpiece of investor attention, reinforcing the growing view that the commercialization of space is evolving from a niche industry into a major investment theme.

Largest Market Cap Companies Chart:⁴

AI Expansion Accelerates with Cursor Acquisition

Just days after completing its historic public debut, SpaceX announced a transformative acquisition that further strengthens its artificial intelligence ambitions. The company formally agreed to acquire Cursor in a transaction valuing the AI coding startup at approximately $60 billion. Cursor has become one of the fastest-growing software companies in history, generating roughly $3 billion of annualized revenue and serving more than 3,000 enterprise customers that each spend at least $100,000 annually on its platform.⁵ The acquisition provides SpaceX with a powerful foothold in one of the fastest-growing segments of artificial intelligence while expanding the capabilities of its xAI division.

The strategic rationale extends well beyond acquiring revenue. Cursor’s software helps programmers write, edit, and debug code using artificial intelligence, making it a critical tool within the rapidly expanding market for AI-assisted software development. SpaceX disclosed that the companies had already been working together before the acquisition announcement and were actively collaborating on training new AI models. The transaction should accelerate xAI’s efforts to compete more effectively with industry leaders while providing Cursor access to the computing resources necessary to continue scaling its platform.

What makes the acquisition particularly interesting is how it highlights the growing synergy across the broader SpaceX ecosystem. Through Starlink, SpaceX controls a rapidly expanding global communications network. Through Starship, it continues lowering the cost of accessing space. Through xAI, the company is building artificial intelligence infrastructure and applications. Cursor adds another layer by providing direct exposure to enterprise software and AI productivity tools. Rather than operating as separate businesses, each division increasingly reinforces the others, creating a vertically integrated technology platform that few competitors can replicate.

Continued Trading Activity Signals Strong Conviction

The trading activity surrounding SpaceX has been extraordinary and may be one of the clearest indicators that investors believe the story remains in its early stages. Options trading began this week and immediately became one of the most active areas of the market. More than 1.1 million option contracts traded during the first day of activity, with investors overwhelmingly positioning for additional upside.⁶ Market participants noted that implied volatility was heavily skewed toward bullish positioning, suggesting traders are paying premiums for exposure to further gains rather than focusing on downside protection.

Importantly, this activity may create additional demand for shares. When investors purchase call options, market makers often hedge their exposure by purchasing stock. As the share price rises, those market makers may be forced to buy even more stock to maintain balanced positions. Combined with the relatively small public float currently available for trading and the potential for future index inclusion, this dynamic could continue supporting strong momentum in the stock over the near term. While volatility should be expected following such a significant public offering, the options market is currently signaling optimism rather than caution.

Investor enthusiasm has also expanded beyond the common stock. Leverage Shares launched two leveraged SpaceX ETFs, SPCH, and SSPC, which generated more than $500 million in trading volume during their first day. SPCH’s first day influx of $283, even marked the largest first-day trading volume for a newly launched ETF since the launch of iShares Bitcoin ETF in 2024, highlighting the extraordinary level of investor demand surrounding the company.⁷ Options trading has already begun on both funds, further expanding investor access and participation. When investors begin creating specialized ETFs and derivative products within days of a company going public, it often reflects the emergence of a powerful new investment theme rather than a short-lived market event.

While near-term volatility is inevitable, we continue to view the broader investment thesis positively. SpaceX is no longer simply a launch company. It is increasingly becoming a diversified technology platform with exposure to artificial intelligence, communications infrastructure, software, data centers, and the rapidly growing commercial space economy. The market’s response to the IPO suggests investors recognize this opportunity, and the combination of strong demand, expanding AI capabilities and multiple future catalysts leaves us constructive on the company’s long-term prospects.

---

¹ Bloomberg, as of June 16, 2026

² Wolfe Research Analyst Note, as of June 12, 2026

³ Bloomberg Intelligence, as of June 15, 2026

⁴ Bloomberg, as of June 16, 2026

⁵ Wallstreet Journal, as of June 16, 2026

⁶ Bloomberg, as of June 16, 2026

⁷Bloomberg Intelligence, as of June 16, 2026