SpaceX has surpassed Amazon to become the fifth-most valuable company globally, following a sharp rise in its stock price that pushed its valuation past $2.7 trillion. This surge occurred after the company announced an all-stock acquisition of the AI coding startup Cursor for $60 billion, driving investor confidence despite the firm reporting a $4.9 billion loss against $18.7 billion in revenue for the previous year. In contrast, Amazon reported a $78 billion profit on $717 billion in sales during the same period. The valuation jump followed SpaceX’s recent initial public offering, which debuted at around $1.7 trillion and raised nearly $86 billion while limiting shares available for trading to just 4%. This restricted float has contributed to significant volatility in the stock price, allowing the company to add $1 trillion to its market value since going public. Recent revenue streams from compute leasing deals with Anthropic and Google have also bolstered the financial outlook, even as the company continues to rebuild its artificial intelligence division under the leadership of Elon Musk.
The event matters because it highlights a dramatic shift in how investors value companies that prioritise rapid expansion and strategic acquisitions over immediate profitability. SpaceX’s ability to command such a high valuation while operating at a loss suggests that the market is betting heavily on future dominance in artificial intelligence and space infrastructure. The acquisition of Cursor underscores a broader trend where technology giants are aggressively pursuing control over foundational software tools to maintain a competitive edge. With the stock remaining highly volatile due to the limited number of shares in public hands, the company’s financial stability will depend on whether these new revenue streams can sustain growth without a corresponding increase in earnings. This development also reflects the changing dynamics of the tech sector, where potential for long-term disruption often outweighs short-term financial metrics.
* SpaceX’s valuation now exceeds $2.7 trillion, surpassing Amazon despite reporting a significant annual loss.
* The company acquired Cursor in a $60 billion all-stock deal to strengthen its artificial intelligence capabilities.
* Market volatility remains high due to a restricted float of only 4% of total shares available for trading.
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