SpaceX Overtakes Amazon Market Cap as Options Trading Shatters Records
SPCX•After its IPO debut, SpaceX became the fourth-largest public company by market cap, briefly overtaking Amazon and sparking record options volume. CFRA set a $115 target implying 46% downside, warning that the $2.75T valuation prices in unproven projects despite $11.4B Starlink revenue and a $14B negative free cash flow.
1. Historic Market Cap Milestones
After its June IPO debut, SpaceX shares surged, elevating the company to the fourth-largest public company by market capitalization and briefly surpassing Amazon. This milestone underscores investors’ appetite for the aerospace giant’s growth narrative.
2. Record Options Trading
First-day options activity for SpaceX shattered existing volume records, with both bullish and bearish contracts flooding the market. The unprecedented trading reflects heightened speculation and divergent views on the company’s near-term valuation trajectory.
3. CFRA Sell Rating Concerns
CFRA analyst Keith Snyder initiated coverage with a Sell rating and a $115 price target, implying 46% downside. He acknowledged SpaceX’s $11.4B Starlink revenue and $6.8B operating cash flow in 2025 but flagged $14B negative free cash flow, massive capital expenditures and Elon Musk’s 85% voting power as key risks to the $2.75T valuation.
