SpaceX shares gained 6% in premarket trading Tuesday, extending a record debut that saw the stock climb nearly 20% on its first day, according to CNBC and Motley Fool. The Elon Musk-led company is now valued at more than $2 trillion, cementing its status as one of the most valuable publicly traded companies in the world.
The surge is being fueled by a wave of institutional demand and retail enthusiasm that had been building for months ahead of the highly anticipated listing. The strong first-day pop has revived interest in post-IPO drawdown patterns, with traders weighing whether the rally can sustain momentum or if profit-taking will follow. South Korean regulators have also expanded inspections of broker Mirae Asset over its allocation of SpaceX IPO shares, signaling increased scrutiny of the process.
Jim Cramer weighed in on the ripple effects, noting a sell-off in Apple stock that some attribute to rotation into the SpaceX IPO. The broader market has taken notice, with analysts watching how the debut reshapes investor expectations for high-growth, capital-intensive companies in the aerospace and defense sectors.
While the initial euphoria is unmistakable, skeptics caution that the valuation is stretched for a company still dependent on government contracts and ambitious Mars colonization timelines. Historically, stocks that surge on day one often face pullbacks within three months, a pattern that could test even SpaceX's loyal shareholder base.