SpaceX briefly overtook Amazon to become the world’s fifth most valuable company and nearly eclipsed Microsoft, before the company’s shares reversed those gains before the market closed on Tuesday.
The newly public company’s stock was already up 20% on Monday – its first full day of trading. Tuesday’s news that SpaceX has acquired artificial intelligence coding company Cursor, along with the start of options trading on SpaceX stock, sent the stock price even higher, pushing its valuation to $2.9 trillion before eventually retreating.
All this despite SpaceX posting a $4.9 billion loss on $18.7 billion in revenue last year, compared to Amazon, which posted $78 billion in 2025 profits on $717 billion in 2025 sales. SpaceX has recently added new revenue streams in the form of computing deals lease with Anthropic and Cursor which will absorb the third quarter revenue from the third quarter.
Anthropic and Google’s deals aren’t binding, but investors don’t seem to care. Elon Musk’s space and artificial intelligence company had added about $1 trillion to its valuation since going public on Friday.
That transaction netted SpaceX nearly $86 billion in new capital, mostly on promises that it can build a trillion-dollar AI business — a crazy claim for a company that recently gutted its AI division.
SpaceX first revealed a partnership with Cursor in April, at a time when Musk said his artificial intelligence company xAI — now part of SpaceX — “wasn’t built right [the] first time” and that he was rebuilding it “from the ground up”. SpaceX is making the acquisition with $60 billion in company stock.
SpaceX’s historic IPO debuted at a valuation of about $1.7 trillion, and the transaction raised nearly $86 billion for Musk’s company. SpaceX only made about 4% of its total shares available for trading, which experts predicted would make the stock more prone to wild swings.
That appeared to be the case Tuesday, as traders exchanged more than 300 million shares of SpaceX during the trading day — more than half of the 555 million available on the public market after the IPO, according to data from the Nasdaq stock market.
Volatility continued in after-hours trading, where SpaceX’s valuation briefly eclipsed Amazon’s market cap for a second time before retreating again.
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