SpaceX Share Price Surge Elevates Company Past Amazon to Fifth Most Valuable Globally
Elon Musk's SpaceX has overtaken Jeff Bezos's Amazon to become the world's fifth most valuable company, with its valuation reaching approximately $2.78tn. This follows a more than 50% surge in its share price days after its public listing on the New York Nasdaq stock exchange.
Amazon, by contrast, is currently valued at around $2.66tn.
The significant increase in SpaceX's market capitalisation coincided with the announcement of its $60bn acquisition of AI coding start-up Cursor. SpaceX confirmed it would take over Anysphere, Cursor's parent company, which develops an artificial intelligence coding agent.
Investor Speculation vs. Financial Reality
SpaceX has attracted considerable investor interest, driven by its long-term vision for sending AI data centres into space and facilitating human colonisation of Mars. The company's listing raised $85.7bn, reportedly establishing Musk as the world's first trillionaire, with shares climbing from $135 to $209 since Friday's public offering.
However, analysts have raised questions regarding the sustainability of SpaceX's elevated share price, citing considerable uncertainty surrounding its future earnings. While Amazon generated a profit of $30.3bn in the first quarter of 2026 and recorded $716.9bn in sales in 2025, SpaceX reported a loss of $4.3bn and sales of $18.67bn in the same periods, respectively. Investors appear to be prioritising future potential over current financial fundamentals.
Concerns also exist that only approximately 4% of SpaceX shares are freely traded on the public market. This limited availability could lead smaller shareholders to pay a premium that may be diluted if institutional investors eventually liquidate their holdings.
Strategic AI Expansion
The acquisition of Cursor is a strategic move as SpaceX expands its presence in the artificial intelligence sector, particularly through its xAI business, which includes the Grok chatbot. Cursor's technology automates code writing using AI, a prominent application of artificial intelligence. Major companies such as Stripe, Adobe, and Nvidia utilise Cursor, with Nvidia's CEO, Jensen Huang, reportedly endorsing it as his "favourite enterprise AI service."
SpaceX and Cursor have been collaborating since April, when Musk's firm secured the option to either acquire Cursor for $60bn or pay $10bn for their joint work. The deal, which will see Cursor's shareholders compensated with $60bn worth of SpaceX shares, is expected to conclude by the end of September.
