The stock of SpaceX (SPCX) has gained more than 20% since holding its record-setting initial public offering (IPO) on June 12.
Shares of SpaceX rose 19% on their first day of trading and are up another 6% in premarket trading on June 15.
The stock began trading last Friday at $150 U.S. per share and closed at $160.95 U.S. SpaceX had priced is IPO at $135 U.S. a share.
The company led by Elon Musk raised $75 billion U.S. from the share sale at a valuation of $1.77 trillion U.S., making it the biggest IPO ever.
While some analysts have expressed skepticism at the valuation and said the stock is grossly overvalued, investors have looked past those concerns and are buying the shares.
With a market capitalization of $2.10 trillion U.S., SpaceX is the sixth largest publicly traded company and larger than Elon Musk’s other publicly traded venture Tesla (TSLA).
SpaceX’s market debut succeeded in making Musk the world’s first trillionaire, pushing his net worth to $1.05 trillion U.S.
The commercial space company operates the Starlink satellite internet service and reusable rockets. In February, Musk merged the company with his artificial intelligence startup xAI.
SpaceX also owns social media platform X, formerly known as Twitter. There are rumors that Musk might eventually bring electric vehicle maker Tesla under the SpaceX umbrella.
Analysts say the key now will be to see what happens to SpaceX stock once the 180-day post-IPO lock-up period expires, allowing insiders and early investors to sell their stock.
Many analysts have already rated SpaceX stock, with research firm CFRA initiating coverage with a “sell” rating and a price target of $115 U.S., which is 29% below Friday’s closing price.
Like any analysts, CFRA says that it is concerned with SpaceX’s “elevated valuation.”
Morningstar (MORN) released a note before the IPO saying that SpaceX is actually worth about $63 U.S. a share and described the stock as “overvalued.”
SPCX stock is trading near $170 U.S. a share in premarket trading on June 15.
