Retail investors drive SpaceX shares up 16% despite concerns over valuation and unresolved technical challenges in its space data center plans.
SpaceX shares surged $25 to $185, a 16% gain, as retail investors piled into the stock following its IPO. The rally lifted the company’s valuation to $2 trillion, despite skepticism over its fundamentals and long-term viability.
The stock’s rapid inclusion in Nasdaq indexes and a limited 5% float amplified the gains. Analysts warn of potential volatility when lockups expire post-Q2 earnings in August, with further releases through year-end.
SpaceX’s revenue growth hinges on leasing unused data center capacity, built with chips originally ordered by Tesla. Technical hurdles, including maintenance and heat dissipation in space, remain unresolved.