SpaceX's Nasdaq debut raised $75 billion, the largest IPO in history, and briefly pushed the company's market value above $2 trillion. Hedge funds had already begun trimming Magnificent 7 exposure ahead of the listing, anticipating that institutional allocations would need funding.
SpaceX raised $75 billion by selling 555.56 million shares at $135 each when it went public on June 12, eclipsing Saudi Aramco's previous record for the largest offering ever. The stock has kept moving markets since.
A debut that broke records
Trading on Nasdaq under the ticker SPCX, shares opened around $150, a premium over the IPO price. Shares then climbed to an intraday high of nearly $176 on day one, briefly pushing the company's market capitalization above $2 trillion. That momentarily put SpaceX ahead of Tesla, Meta, and Amazon in market value, even though the company reported a net loss of roughly $4.94 billion on $18.67 billion in 2025 revenue.
The offering, managed by Goldman Sachs and Morgan Stanley, was oversubscribed by more than four times, with investors seeking over $300 billion worth of shares that didn't exist. A greenshoe option could still push total proceeds to $86 billion if fully exercised. Elon Musk, meanwhile, retained approximately 82-85% voting control after the listing.
Magnificent 7 rotation
Hedge funds began trimming their Magnificent 7 exposure ahead of the IPO, anticipating that institutional allocations would need funding. Meanwhile, the Roundhill Magnificent Seven ETF, tracked under the ticker MAGS, saw notable declines as the rotation picked up speed. Retail investors joined the shift too, with net selling pressure emerging across the previously dominant tech names. Some analysts have already started floating alternative groupings for the sector, calling it MANGOS or the Fab 10.
What SpaceX sells, and who feels the pressure
The $1.77 trillion IPO valuation was anchored primarily by two businesses: rocket launches and Starlink, with Starlink contributing the lion's share of the company's revenue. SpaceX has also integrated xAI into its subsidiary structure. However, the company remains unprofitable, trading at a price-to-revenue ratio north of 90x at IPO pricing. By mid-September 2026, shares had settled into a range between $150 and $160.
Tesla faces the most direct challenge from the rotation, as it competes with SpaceX for the "Musk premium" in investor portfolios.
Source: Crypto Briefing
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