SpaceX stock jumps after record IPO, making Musk the first trillionaire
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SpaceX soared in its Nasdaq debut on Friday, sending its value past $2 trillion US, as investors jumped at the chance to get a piece of Elon Musk’s sprawling empire spanning rockets, internet service and AI after a record-setting IPO.
Trade kicked off late Friday morning, swinging for most of the session between gains of 15 per cent and 30 per cent above Thursday’s pricing with little in the way of volatility. Shares ended the day at about $161 a share, up 19 per cent, making SpaceX the sixth-largest U.S. company, though the final settlement price had yet to be determined.
The trading, which surpassed 500 million shares, or about $80 billion US in volume, capped off a lead-up fraught with anxiety over the exchange’s ability to handle the launch, particularly after a recent swoon in technology shares that raised concerns about the massive gains in AI-linked names.
With mega-listings from AI heavyweights Anthropic and OpenAI waiting in the wings, market watchers worried that a flood of new IPOs could hurt market performance following a long period with a relative dearth of offerings. But investors across the spectrum, from large institutions to retail fans of Musk, ended the day euphoric.
“SpaceX is not only a record breaker in terms of money raised at a stock market debut, but it has also left other big names for dust. When the starting valuation is already pushing $2 trillion, adding that much value at the click of a finger is impressive,” said Dan Coatsworth, head of markets at AJ Bell.
CBC’s Peter Armstrong breaks down what to expect with Elon Musk’s SpaceX initial public offering (IPO) — valued at $1.77 trillion US — and how an insatiable investor appetite for anything AI at the moment is fuelling stock markets despite a struggling global economy.
The landmark listing cemented Musk’s status as the first trillionaire ever — despite coming under pressure during Musk’s active role in U.S. President Donald Trump’s administration.
SpaceX executives, including President Gwynne Shotwell and Chief Financial Officer Bret Johnsen, celebrated at the Nasdaq market site in New York’s Times Square after ringing the opening bell on Friday. Musk held a separate event for employees in Texas.
World’s largest IPO
The record IPO is a culmination of Musk’s long-held ambitions in space and technology, and has stood out for rewriting Wall Street’s IPO playbook and drawing legions of retail investors into the market.
At $75 billion US, the deal’s proceeds were more than double those of Saudi Aramco’s record-setting 2019 IPO.
The valuation could rise further should underwriters exercise their right to sell additional shares,…
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