SpaceX's Nasdaq listing was a significant event, regarded as a successful test for upcoming mega-IPOs such as OpenAI and Anthropic. The debut, which launched on June 12 with an IPO price of $135 and an opening price of $150, raised concerns beforehand due to memories of past chaotic IPO rollouts, but proceeded without major technical problems. Trading began shortly before noon, an earlier start compared to other recent public debuts.
Citadel Securities, the largest U.S. retail market maker, reported that SpaceX's debut generated the highest retail order activity ever recorded for an IPO auction, handling the majority of these orders. The firm noted that retail participation reached unprecedented levels. Vanda Research data showed SpaceX was the most bought stock by retail investors for a second consecutive session, with net buying potentially clearing $100 million again. On Monday, retail investors bought almost as much SpaceX stock over two sessions as they bought across the entire US stock market the prior week, accounting for roughly 73% of all retail single-stock purchases that day, totaling over $93 million during the day alone.
Morgan Stanley served as the deal's stabilization agent, responsible for managing the stock's opening. In this role, the bank would typically buy shares to support prices during declines, a function made vital by the unprecedented investor demand and well over a million orders. The IPO's over-allotment option (greenshoe) was exercised, allowing underwriters to sell an additional 83.3 million shares, lifting total proceeds to $86.2 billion before expenses, or $85.7 billion after underwriting costs. Despite this additional supply, the market absorbed it readily, indicating strong demand in a tight float situation.
SpaceX's stock closed its first day at $160.95, a 19.2% gain from its initial offering price, catapulting it to a $2.1 trillion market capitalization. It rose another 11% to $178 on Monday and was up another 10% in premarket trading on Tuesday, indicating an open above $200. At this premarket price, SpaceX would be worth approximately $2.9 trillion. The massive retail demand, while a sign of success, also prompted warnings from analysts like Charlie Bilello about the potential for SpaceX to become a "meme stock." Keith Snyder of CFRA initiated coverage with a Sell rating and a $115 price target, implying roughly 46% downside from current levels.
On its first day of options trading, SpaceX set another record with 1.8 million contracts changing hands, surpassing Meta's previous record from 2012. This activity generated approximately $2.8 billion in option premiums. At its busiest, SpaceX options traded at nearly 10,000 contracts per minute, with most traders favoring call options, reflecting strong confidence in future stock growth. This high options activity highlights the company's emergence as a significant market structure story, driven by powerful narratives and scarce supply meeting urgent demand.
