- Amazon’s market cap surpassed $3 trillion for the first time, while SpaceX has lost 32% of its value over the past month.
- The two companies, valued equally at $2.65 trillion in June, have now swapped $560 billion in market capitalization.
- SpaceX reports its first quarterly earnings on Tuesday, followed by a massive share unlock that could add further sell pressure.
In less than six weeks, Amazon gained nearly as much market capitalization as SpaceX lost, with both companies swapping precisely $560 billion in value since June 26. Astonishingly, as recently as June 16, both were each valued at $2.65 trillion.
However, their valuations have since trended in opposite directions. Shares of Amazon climbed above $284 today, carrying the online retailer’s market value past $3 trillion for the first time.
SpaceX had a stellar start after its IPO, briefly surpassing Amazon’s value, but its stock then crashed repeatedly. Today, Amazon’s $3.06 trillion market cap is more than twice as valuable as SpaceX’s $1.44 trillion.
Amazon’s surge followed a strong earnings report, posting second-quarter net sales of $200 billion and operating income up 43%. Its AWS division grew at its fastest rate in 18 quarters, according to reports.
The company posted adjusted earnings of $1.97 per share, beating Wall Street estimates, on revenue of $200 billion versus an expected $196 billion. Accelerating cloud-computing growth eased investors’ concerns about Amazon’s heavy AI spending, data shows.
CEO Andy Jassy said, “There’s a lot to be excited about, and we have much more coming for customers in the second half of the year and beyond.” Roughly $53 billion of the quarter’s net income arrived as non-operating gains, largely on Amazon’s stake in Anthropic.
Meanwhile, SpaceX has suffered a terrible few weeks, pricing the largest IPO in history at $135 per share in June. Within three trading sessions, it touched an intraday peak near $2.95 trillion, a level it would never regain.
By this morning, SpaceX traded down to a fresh all-time low near $105, well below the price its own underwriters set. The calendar offers no relief, as SpaceX posts its first quarterly results after the close of trading tomorrow.
Consequently, investors are obviously not optimistic given the poor stock performance. Two days after earnings, a share unlock will free 911 million additional shares for sale, more than doubling the tradable float and adding sell pressure.
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