SpaceX shares surged in premarket trading Monday, poised to extend gains following a record-breaking initial public offering that vaulted the company into the ranks of the world's most valuable public entities.
The stock climbed as much as 7.7% to US$173.30, building on Friday's 19% gain. That debut gave the company a market value of approximately US$2.1 trillion at the close last week, after its record US$75 billion IPO.
AI Rally Boosted
The strong performance helped bolster confidence in the artificial intelligence rally, following SpaceX's embrace of AI earlier this year with the acquisition of Elon Musk's xAI. It also boosted the IPO prospects of Anthropic PBC and OpenAI, both of which plan to go public themselves.
"The positive SpaceX debut and investor reception is a good sign for OpenAI and Anthropic as both companies likely head down the IPO path before year-end," Wedbush Securities analyst Dan Ives wrote in a note to clients.
Valuation Concerns Persist
Still, many investors remain skeptical that SpaceX, which has yet to turn a profit, deserves such a hefty valuation. Monday will mark the first full trading session for the stock formally known as Space Exploration Technologies Corp. Shares opened a few minutes before noon on Friday in New York, meaning it traded for just over four hours before the market close.
"Overall, SpaceX going public is an important watershed moment for the broader tech sector in our view as this AI revolution and data takes this next step forward," Ives added.
