SpaceX Surpasses Amazon in Value After Stock Surge
Quick Look
- SpaceX has become the world's fifth most valuable company, surpassing Amazon with a valuation of $2.78tn after a 50% stock price surge post-IPO.
- The company announced the $60bn acquisition of AI coding startup Cursor.
AI-generated summary
Why It Matters
SpaceX has seen a significant increase in its share price following its public listing, leading to a higher valuation than Amazon. The company also announced the acquisition of AI coding startup Cursor.
Elon Musk's SpaceX has overtaken Amazon to become the world's fifth most valuable company after a surge in its share price.
Days after joining New York's tech-focused Nasdaq stock exchange in the biggest public listing ever, its share price has risen by more than 50%.
It leaves Musk's rocket company worth about $2.78tn (£2.1tn), while Jeff Bezos's sprawling online retail and media empire is currently worth about $2.66tn.
The boom in SpaceX's value came as it announced it was buying AI coding start-up Cursor for $60bn.
SpaceX said it would take over Anysphere, Cursor's parent company, which makes the artificial intelligence coding agent.
SpaceX has garnered huge enthusiasm among investors for its vision of sending AI data centres to space and even helping humans to colonise Mars.
Its listing raised $85.7bn and minted Musk as the world's first trillionaire. Since first selling shares to the public at $135 each on Friday, they have risen to $209.
But analysts have questioned the sustainability of its high share price given the huge amount of uncertainty over its future earnings.
While Amazon is a household name, with its brand difficult to avoid being encountered on an almost daily basis, SpaceX is less embedded in the lives of the general public.
Amazon made $30.3bn of profit in the first quarter of 2026, while Musk's future-focused SpaceX lost $4.3bn.
The company also manufactures and launches Starlink internet satellites, and is ramping up its presence in the AI race.
SpaceX and Cursor have been partners since April, when Musk's firm announced it had the right to either buy it for $60bn, or pay $10bn for the work they have done together.
Like OpenAI and Anthropic, Cursor's technology uses AI to automate the process of writing code, one of the most prominent current uses for artificial intelligence.
The tie-up comes as SpaceX tries to catch up with rivals by growing its AI business, xAI, which is behind the controversial Grok chatbot.
Announcing the partnership in April, SpaceX said: "The combination of Cursor's leading product and distribution to expert software engineers with SpaceX's million H100 equivalent Colossus training supercomputer will allow us to build the world's most useful models."
What to Watch
AI outlook — possibilities, not facts
SpaceX's share price may face volatility due to earnings uncertainty.
Possible · Medium term
Open Questions
- Sustainability of SpaceX's high share price.
- Long-term profitability of SpaceX.
- Impact of Cursor acquisition on SpaceX's AI strategy.
