SpaceX hits $2.9T valuation, briefly passes Amazon

Key Takeaways

• SpaceX briefly became the fifth-most valuable company globally, surpassing Amazon's market cap before shares pulled back
• The company announced a $60 billion stock acquisition of AI coding startup Cursor, signaling aggressive AI expansion
• SpaceX added roughly $1 trillion to its valuation in just four trading days despite posting a $4.9 billion loss last year

SpaceX briefly surpassed Amazon to become the fifth-most valuable company in the world on Tuesday, with its valuation spiking to $2.9 trillion before settling back down by market close. The newly public company has now added roughly $1 trillion to its market cap since debuting on Friday at a $1.7 trillion valuation.

Two factors drove Tuesday's surge: the announcement that SpaceX is acquiring AI coding company Cursor for $60 billion in stock, and the start of options trading on SpaceX shares. The combination sent traders into a frenzy. More than 300 million shares changed hands throughout the day, over half of the 555 million shares available on the public market, according to Nasdaq data.

The volatility continued after hours. SpaceX's valuation eclipsed Amazon's market cap a second time before falling again. At its peak, the company nearly caught Microsoft.

How does SpaceX compare to Amazon financially?

The valuation gap between SpaceX's market cap and its fundamentals is striking. SpaceX posted a $4.9 billion loss on $18.7 billion in revenue last year. Amazon, by comparison, turned a $78 billion profit on $717 billion in sales in 2025.

Investors are not buying SpaceX for what it earns today. They are betting on what it might become. The company has recently signed non-binding compute leasing deals with Anthropic and Google, adding new revenue streams beyond rocket launches and Starlink subscriptions. When the Cursor acquisition closes in Q3, that revenue will fold into SpaceX's books as well.

The market is pricing in a future where SpaceX dominates space logistics, satellite internet, and AI-driven engineering. Whether that future arrives is another question.

Why is SpaceX buying Cursor?

SpaceX first revealed a collaboration with Cursor in April. At the time, Elon Musk acknowledged that his AI company xAI, now folded into SpaceX, "was not built right the first time around" and that he was rebuilding it "from the foundations up."

The $60 billion acquisition, paid entirely in SpaceX stock, represents a major pivot. Rather than building AI capabilities internally from scratch, SpaceX is absorbing one of the most popular AI coding tools on the market. Cursor has built a loyal following among developers for its code completion and generation features.

The logic tracks with SpaceX's history. The company has always prioritized vertical integration and cost reduction. If AI can accelerate the design and testing of Starship components, the acquisition could pay for itself in engineering velocity.

Why is the stock so volatile?

SpaceX only made about 4% of its total shares available for trading in the IPO. Experts predicted this thin float would make the stock susceptible to wild swings, and Tuesday proved them right.

When demand outstrips supply by this margin, small shifts in sentiment move prices dramatically. The start of options trading amplified the effect. Options allow traders to make leveraged bets on price movements, which can create feedback loops that push the underlying stock higher or lower.

The IPO itself raised nearly $86 billion for SpaceX, giving Musk a massive war chest for acquisitions, R&D, and Starship production. But the cash came at the cost of inviting public market dynamics, and all the volatility that entails.

What are investors actually betting on?

The bull case for SpaceX rests on several pillars. Starlink is already the dominant satellite internet provider, with limited competition. Starship, if fully operational, could enable point-to-point Earth delivery, Mars colonization, and a near-monopoly on heavy launch capacity. The AI pivot, including the Cursor deal and compute partnerships, adds a software revenue stream that could scale independently of hardware.

The bear case is simpler: SpaceX loses money, and no amount of future promise justifies a $2.9 trillion valuation for a company that generates $18.7 billion in annual revenue. That works out to a price-to-sales ratio north of 150. Amazon trades at roughly 3.

The market has made its bet. Whether it holds depends on SpaceX delivering on the promises that got it here.

Frequently Asked Questions

What is SpaceX's current valuation?

SpaceX's valuation peaked at $2.9 trillion on June 16, 2026, before settling back below Amazon's market cap by market close. The company debuted at roughly $1.7 trillion when it went public on June 13.

Why did SpaceX stock rise so quickly after the IPO?

Only 4% of SpaceX's total shares were available for trading, creating a thin float that amplifies price swings. The announcement of the Cursor acquisition and the start of options trading added further fuel.

How much is SpaceX paying for Cursor?

SpaceX is acquiring Cursor for $60 billion in company stock. The deal is expected to close in Q3 2026.

Is SpaceX profitable?

No. SpaceX reported a $4.9 billion loss on $18.7 billion in revenue last year. The company is investing heavily in Starship development and AI infrastructure.

How does SpaceX's valuation compare to Amazon?

SpaceX briefly surpassed Amazon's market cap on Tuesday, but Amazon remains far more profitable, with $78 billion in profit on $717 billion in sales in 2025.

Source: TechCrunch / Sean O'Kane