SpaceX IPO rally stokes bubble fears, meme-stock ties

SpaceX’s stock climbed sharply in the days after its IPO, closing at $201.80 after reaching an intraday high of $225.64. The rise pushed the company’s market capitalization to about $2.7 trillion, roughly $800 billion higher than its value at the IPO price of $135, with the increase occurring within the first week of trading.

A relatively small public float has been cited by market participants as a factor amplifying price swings. The shares briefly surpassed Microsoft in intraday trading before retreating, and they have overtaken other large technology names in market capitalization.

SpaceX reported $18.7 billion in revenue last year and a net loss of $4.9 billion after including results from xAI. Several long-term initiatives, including artificial intelligence and space infrastructure projects, remain unprofitable and do not have set timelines for sustained profitability.

Options trading around the stock surged after options listings began. Nearly one million call options changed hands on Tuesday, with call purchases dominating activity and large packages of far out-of-the-money July calls among trades. Weekly options were expected to begin trading later in the week.

Chris Murphy, co-head of derivatives strategy at Susquehanna Investment Group, highlighted the volume and said weekly options could increase short-dated activity and retail participation. At the same time, some large investors used collars-buying puts while selling calls-to protect positions ahead of future lock-up expirations.

Analysts warned the rapid rise may reflect speculative demand rather than company fundamentals. Swissquote analyst Ipek Ozkardeskaya described the rally as “perhaps the biggest red flag that today’s technology rally is reaching a point where valuations no longer make sense.” Joe Saluzzi, co-head of equity trading at Themis Trading, compared the trading pattern to meme stocks. Market commentator Jim Cramer said he was uncomfortable watching the stock climb rapidly in short periods and likened it to meme-stock behavior while adding he likes the company.

The listing’s expected inclusion in major indexes is likely to prompt purchases by passive funds and exchange-traded funds, which could add buying pressure as those changes are implemented. Investors remain divided: some have taken defensive positions while others have placed bullish bets expecting further gains.