Space Exploration Technologies Corp.'s market capitalization crossed above $3 trillion in after-hours trading on Monday, surpassing the valuations of Microsoft Corp. and Amazon.com Inc. This surge has increased CEO Elon Musk's net worth by approximately $165 billion, bringing his total fortune to over $1.3 trillion. The rally follows the company's recent initial public offering (IPO), which raised $85.9 billion via an overallotment option, and has solidified Musk's status as a centi-trillionaire.

Market Valuation and Comparisons

SpaceX's valuation now exceeds the market capitalizations of major technology giants. Microsoft reported a market cap of $2.97 trillion with revenue of $318 billion and net income of $125 billion. Amazon reported a market cap of $2.65 trillion with revenue of $743 billion and net income of $91 billion. In contrast, SpaceX reported revenue of $19 billion and a net loss of $9 billion, including a loss of approximately $4.3 billion in the first quarter of 2026.

Elon Musk's Wealth and Stake

The increase in SpaceX's stock price has significantly boosted Musk's wealth. His net worth now exceeds the market capitalization of all but 12 public companies globally. The combined market capitalization of SpaceX and Tesla Inc. has also surpassed that of Apple Inc. Musk's 38% stake in SpaceX remains a primary driver of his wealth accumulation.

Sector Impact and Commentary

The stock's performance has drawn mixed reactions. While investors like Charlie Bilello highlighted the historical nature of the valuation, economist Robert Reich criticized the IPO as the "universe's largest Ponzi scheme." SpaceX shares were up 3.49% to $199.21 during the after-hours trading session.

Space Exploration Technologies Corp. may have executed the largest IPO in history, but the lofty valuation is currently supported by market sentiment rather than fundamental economics, according to Direxion CEO Douglas Yones. The executive warned that the biggest risk to the stock arises if investor sentiment shifts and they begin demanding cash flows that justify the high price tag.

Yones stated that the company's valuation is likely sentiment-driven in the near-term. He noted that the economics of the company alone could not warrant the current valuation levels. Instead, the enthusiasm is fueled by a combination of external factors and strategic positioning.

Drivers of Valuation

The surge in investor interest is attributed to several key elements. Yones pointed to the company's status as the largest IPO ever as a primary driver. Additionally, the proximity to Elon Musk and the potential position of the company within the broader artificial intelligence investment theme contribute significantly to the fervor surrounding the listing.

Key Risks

While the focus remains on growth opportunities, Yones advises investors to monitor shifts in market sentiment closely. He cautioned that if sentiment changes and investors start demanding cash flows commensurate with the valuation, SpaceX could experience weakness. This creates a balancing act for investors weighing ambition and innovation against traditional financial metrics.