SpaceX (SPCX) shares reached a market capitalization of about $3 trillion, surpassing Amazon and Microsoft on this metric. The company crossed this threshold less than a week after its initial offering with a valuation of $1.75 trillion. This was noted by representatives of the analytical project The Assembly.
Thus, in just a few days of trading, SpaceX burst into the ranks of the most valuable public companies in the US, leaving two tech giants behind. Analysts call the very fact of such a surge unprecedented.
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Why the price rose so sharply
According to researchers, the reason for the rapid growth is the mechanics of an extremely low volume of shares in free float. During the IPO, only about 4% of all shares entered the market, while the remaining 96% are locked up with insiders, employees, early investors, and large institutional holders under a phased unlock schedule.
When buyers come to the market, they run into a glaringly small volume of shares available for trading. As The Assembly notes, there are far more buy orders in the order book than offers, so the price is forced to rise in jumps to draw at least some sellers into the market.
This is how The Assembly explains the sharp jumps in quotes amid seemingly ordinary trading volumes. The spread widens into a supply deficit, and each new large buy order pushes the price noticeably higher.
The main nuance is in how the capitalization is calculated. It is computed across all issued shares, including the locked-up 96%. That is why the resulting figure reaches $3 trillion, even though only a small portion of the shares trades in circulation. The Assembly calls this the mechanics of an extremely low free float (the share of stock in free circulation) of a scale not seen before.
Source: BeInCrypto
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