SpaceX Overtakes Amazon as World's Fifth Most Valuable Company

AI Summary

SpaceX has overtaken Amazon to become the world's fifth most valuable company, with a valuation of $2.97tn, after its stock market debut. The company agreed to buy AI-powered coding app Cursor for $60bn.

The Rise of SpaceX

SpaceX has overtaken Amazon to become the world’s fifth most valuable company days after its stock market debut.

The Acquisition of Cursor

The milestone came as Elon Musk’s company agreed to buy the startup behind the AI-powered coding app Cursor for $60bn (£44bn), in an attempt to capitalise on the technology’s success as a coding tool.

The Data Analysis

SpaceX shares rose by 13% on opening on the Nasdaq index on Tuesday. At one point, its valuation rose as high as $2.97tn, leaping over Amazon’s $2.65tn to become the world’s fifth most valuable company by market value.

The Impact Analysis

The group also includes the SpaceX rocket company, social media platform X and the satellite maker and internet service provider Starlink, which is the only profitable part of the business. SpaceX lost $4.9bn in 2025 on revenues of $18.7bn, while Amazon posted revenues of $717bn and net income – a US measure of profit – of $78bn.

The Prediction

The deal will not use proceeds from SpaceX’s IPO. The transaction is expected to close in the third quarter of 2026. The hedge fund billionaire Bill Ackman said the strong value of SpaceX’s stock was another boon for the company because it would require fewer of the company’s shares to pull off large acquisitions.