SpaceX Shares Rise 19% in Record IPO Adding Over $350 Billion

SpaceX shares rose nearly 20% on their first day of trading after the company completed the largest initial public offering in history. The stock closed up 19% after retail investors drove heavy demand. The offering sold about 5% of the company and lifted its market capitalization by more than $350 billion.

Street viewed the debut as a test of the market's ability to absorb large new share sales amid ongoing AI-related fundraising. Lossdog founder and CEO Tom Sosnoff told Yahoo Finance the market's capacity rated a 10 on a 1-to-10 scale. Fortuna Investments CEO Justus Parmar said the offering was heavily oversubscribed and that his firm received only a portion of the shares it requested.

Retail investors rotated out of some prior AI holdings to participate.

Research noted that retail buying has been selective in 2026 and warned that further rotation away from earlier AI leaders could occur if SpaceX maintains its appeal. Yale University professor emeritus Roger Ibbotson cautioned that hot IPOs often cool once insider lock-up periods expire.

Laffer Tengler Investments CEO Nancy Tengler compared the debut to Amazon's 1997 listing, which later produced gains exceeding 200,000%. Goldman Sachs strategist Ben Snider said record equity issuance would not derail the current bull market, though supply pressures could increase in 2027.

The firm maintained its year-end target of 8,000 for the S&P 500.