SpaceX shares rise 6% in premarket after record IPO debut
The stock’s surge follows strong early momentum but raises questions over its $2 trillion valuation
SpaceX shares rose around 6% in premarket trading on Monday following its blockbuster Nasdaq debut last week, which marked the largest initial public offering on record.
The stock was trading near $170 in premarket, extending gains after a sharp first-day rally.
Record IPO fuels early momentum
CNBC reported SpaceX surged 19% on Friday, closing at $161 after being priced at $135 per share.
The move pushed the company’s market capitalisation above $2 trillion, making it one of the most valuable listed companies globally.
The IPO debut has drawn significant investor attention due to the scale of demand and valuation expectations.
Analysts question $2 trillion valuation
The company’s valuation has triggered debate among analysts, with some warning it may be stretched.
CFRA initiated coverage with a “sell” rating and a 12-month price target of $115, implying a potential 29% downside.
“Due to the company’s extremely ambitious growth strategy, elevated valuation expectations, and significant capital intensity,” CFRA said.
Morningstar also flagged concerns, valuing the stock at $63 per share and calling it “overvalued”.
However, New Street Research took a more positive view, assigning a $165 price target.
Heavy investment and expansion strategy
SpaceX reported capital expenditure of $10.1 billion in the three months ending March, up sharply from $4.1 billion a year earlier.
A large portion of spending has been directed toward artificial intelligence and infrastructure expansion.
The company operates the Starlink satellite network and reusable rocket systems and recently merged with Elon Musk’s AI firm xAI.
SpaceX also reported a loss of nearly $5 billion in 2025, adding to scrutiny over its long-term profitability.
