SPCX market cap surge surpassing MSFT

What happened: SpaceX (SPCX) stock surged in its first trading days, making it the largest IPO ever. On Tuesday, it opened at over $200, giving it a market cap of $2.9 trillion, surpassing Microsoft (MSFT) and nearing Apple's. SpaceX options are the third most traded, behind Tesla and Nvidia, with millions of contracts traded. SpaceX raised more cash than initially reported, planning to fund various growth initiatives.

Market impact: The space industry and related tech stocks are in focus. SpaceX's valuation, now among the world's highest, is driving investor interest in the sector. However, its high valuation is not backed by strong fundamentals, raising questions about sustainability. Microsoft and other tech giants may face increased competition and valuation scrutiny.

What to watch next: SpaceX's market cap will be closely watched, with the $3 trillion level next in sight. Upcoming earnings from SpaceX's competitors, such as Tesla and Nvidia, will provide context for SpaceX's valuation. Additionally, any updates on SpaceX's growth initiatives and their progress will be crucial to monitor.