SpaceX Stock Rises Again, Market Cap Hits $2.64 Trillion, Briefly Surpassing Microsoft

(Taipei, San Francisco, 16th – international news compilation) Fueled by a record initial public offering (IPO) and a wave of retail investor enthusiasm, SpaceX, the space exploration company led by Elon Musk, saw its stock price soar again today, placing it among the top five most valuable companies globally for most of the trading session and briefly surpassing Microsoft.

According to AFP, SpaceX's stock (officially Space Exploration Technologies Corp.) closed up nearly 5% at $201.80, pushing its market capitalization to $2.64 trillion.

At closing, SpaceX's market cap was just below Amazon's $2.65 trillion, but for most of the trading day, SpaceX's valuation exceeded that of the e-commerce giant. At one point, SpaceX even surpassed Microsoft to become the world's fourth most valuable company.

One key factor behind the surge was SpaceX's announcement of its plan to acquire Cursor, an AI-powered software development startup, for $60 billion. The acquisition aims to solidify SpaceX's position at the heart of the AI boom.

Eric Clark, Portfolio Manager and Chief Investment Officer at Accuvest Global Advisors, said: "At this market valuation, there's simply no fundamental justification. This is entirely driven by retail investor enthusiasm, extremely limited float, and almost no institutional selling."

He added, "This is a momentum trade, propelled by retail excitement and growth-focused fund managers eager to gain exposure." SpaceX's true growth potential, he noted, should be assessed over a 5-to-10-year horizon.

Since last week's record-breaking IPO that raised $85.7 billion, SpaceX's stock has surged over one-third in just three trading days.

Steve Sosnick, Chief Strategist at global automated broker Interactive Brokers, said: "There's a certain level of AI mania in the market right now. Any company perceived as benefiting from AI spending is being bid up."

Founded in 2002 by Musk, SpaceX has evolved from a rocket startup into a major satellite operator and has integrated Musk's AI company xAI and social media platform X.

The acquisition of Cursor represents SpaceX's latest major investment in the AI domain.

Based in San Francisco, Cursor was founded in 2022 and develops AI tools for software development, with a particular focus on the enterprise market.

The acquisition was foreshadowed in April when SpaceX and Cursor announced a partnership, which included a clause allowing SpaceX to acquire the company for $60 billion.

Cursor's rise has paralleled the "Vibe Coding" trend, where users leverage AI to generate code and build applications without deep programming expertise.

During its last funding round in November last year, Cursor was valued at $29 billion, making this $60 billion acquisition more than double its previous valuation. (Translation: Hsu Jui-cheng) 1150617

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