SpaceX scores big as stock soars and people are starting to bet on it
SpaceX scores big as stock soars and people are starting to bet on it
Mills HayesSat, June 13, 2026 at 4:40 PM UTC
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SpaceX scores big as stock soars and people are starting to bet on it
(NewsNation) — SpaceX made its public market debut as the largest IPO in history, but the rocket company wasn't profitable last year — so why are investors pouring in billions?
Analysts say the answer is simple: they're betting on what comes next.
"The company is burning through cash at a pretty rapid rate, as is Anthropic and especially OpenAI," IPO expert Jay Ritter told NewsNation. "They need some external financing. The stock is going to be volatile, there will be some big ups and some big downs, I don't know when that will be, but it's not going to be steady."
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SpaceX ended its first day of trading with shares up 19%, closing at $160 — well above its $135 offering price. The stock sale raised around $75 billion, shattering the previous IPO record set by Saudi Aramco's $25.6 billion offering in 2019.
The company is now the sixth most valuable publicly traded company in the U.S., with a market value topping $2 trillion.
Investors aren't just betting on trips to Mars. SpaceX generates revenue from satellite internet service Starlink, artificial intelligence company xAI, the social media platform X and national security contracts with the U.S. government — a diversified portfolio that analysts say gives the company multiple paths to profitability.
Wedbush tech analyst Dan Ives told NewsNation he believes there is an 80% chance SpaceX and Tesla will merge in 2027, which would bring founder Elon Musk's sprawling AI and technology empire under one roof.
"It's not just space — it's AI, it's data," Ives said. "It's our view that they ultimately merge with Tesla over the next year."
But Ritter cautioned that early enthusiasm doesn't mean smooth sailing for retail investors.
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"The stock is going to be volatile," he said. "There are going to be some big ups and big downs."
That volatility could matter to millions of Americans who may already own a slice of SpaceX without realizing it. Vanguard, which manages roughly 5 million Americans' 401(k)s, said some of its index funds will begin buying SpaceX shares next week.
Fidelity, which serves more than 24 million Americans, is taking a different approach, allowing customers to decide for themselves whether to purchase the stock.
Analysts estimate SpaceX could make up as little as 0.1% of a diversified index fund, meaning the IPO is unlikely to make or break most retirement accounts.
The IPO also stands to transform thousands of SpaceX employees. More than 4,000 workers, from welders to janitors, are expected to become millionaires as their equity stakes vest.
Musk, meanwhile, is now considered the world's first trillionaire, with a net worth greater than the next four richest people on earth combined.
Anthropic and OpenAI have also reportedly filed paperwork to go public within the next year, setting the stage for a broader AI tech surge on Wall Street.
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Source: “AOL Money”
