SpaceX's $60 Billion Cursor Acquisition Propels Stock Past $225, Extending IPO Rally to 50% in a Week

SpaceX's all-stock acquisition of AI startup Cursor for $60B drove shares up 17%, briefly pushing market cap past Microsoft. IPO raised $85.7B, but Q1 loss hit $4.3B.

Just four days after its historic Nasdaq debut, SpaceX has delivered another seismic event: a $60 billion all-stock acquisition of AI startup Cursor that briefly vaulted its market capitalization past Microsoft. The deal, which emerged from an option secured back in April, sent shares of SPCX soaring more than 17% on Tuesday to an intraday high of $225.64, lifting the company's valuation to approximately $2.78 trillion.

Cursor, operating under the corporate name Anysphere, develops an AI-powered programming assistant and was generating annualized B2B revenue of roughly $2.6 billion. The original agreement gave SpaceX the choice to buy Cursor for $60 billion or pay a $10 billion break fee — a penalty that effectively forced the deal forward. The transaction is expected to close by the end of September 2026, with Cursor continuing as a standalone subsidiary. SpaceX management pegs the addressable AI market at $26 trillion.

Tuesday's rally pushed SpaceX's market cap above Amazon's $2.66 trillion, claiming the fifth spot among the world's most valuable companies. At the session's zenith near $220, the valuation briefly touched $2.94 trillion, overtaking Microsoft. Trading volume in SPCX exceeded $9.1 billion, and the options market opened on the same day, adding a new layer of speculative firepower.

The surge extends a staggering run from the initial public offering. SpaceX launched 638.9 million Class A shares at $135 each on June 15, 2026, with underwriters fully exercising the greenshoe to place an additional 83.3 million shares. That brought total proceeds to $85.7 billion. By the second trading day, June 16, the stock had already climbed 42% to $192.50, with an intraday range of $167.16 to $202 and volume of 256 million shares. JPMorgan Asset Management estimates the tradable float at just 5% of total shares — roughly half the typical 10-20% range for an IPO — amplifying each price move.

The capital raised carries specific deployment targets. SEC filings detail four areas: AI computing infrastructure, launch infrastructure, rocket development, and expansion of the Starlink satellite constellation. Alongside the capital raise, around 103 million outstanding preferred shares converted into Class A or Class B common stock. The board adopted an updated stock option plan covering nearly 301 million Class A shares and an employee stock purchase plan for roughly 24 million shares.

All that ambition sits atop a loss-making business. SpaceX reported a first-quarter 2026 net loss of $4.3 billion. Full-year 2025 revenue hit $18.7 billion — $11.4 billion of it from Starlink — against a net loss of nearly $5 billion. Elon Musk nonetheless holds to a target of $1 trillion in annual revenue by 2030.

Wall Street remains deeply split. Oppenheimer initiated coverage with an Outperform rating and a $190 price target. CFRA rates the stock a Sell, assigning fair value of $115, citing risks around the Starship program. Morningstar goes further, pegging intrinsic value at just $63 per share.

Index inclusion is fast approaching. SpaceX is slated to join the FTSE Russell and MSCI indices by the end of June, which will force additional institutional buying. The company is also charting an unconventional communications path: it plans to disseminate news primarily through its investor relations website and Elon Musk's X account, explicitly forgoing traditional press release services like Business Wire. Quarterly results will follow the same strategy.

For now, the combination of a record-breaking IPO, a transformative AI acquisition, and an exceptionally tight float has created a market anomaly — one that has already made SpaceX the world's fifth-largest company less than a week after its public debut.