{"id":49842,"date":"2026-06-17T11:35:08","date_gmt":"2026-06-17T11:35:08","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/17\/spacex-rally-sparks-tech-stock-bubble-concerns-fuels-meme-stock-comparisons\/"},"modified":"2026-06-17T11:35:08","modified_gmt":"2026-06-17T11:35:08","slug":"spacex-rally-sparks-tech-stock-bubble-concerns-fuels-meme-stock-comparisons","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2026\/06\/17\/spacex-rally-sparks-tech-stock-bubble-concerns-fuels-meme-stock-comparisons\/","title":{"rendered":"SpaceX rally sparks tech-stock bubble concerns, fuels meme-stock comparisons"},"content":{"rendered":"
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SpaceX’s blistering rally since its stock market debut is reigniting concerns that investor enthusiasm for artificial intelligence and technology stocks may be pushing valuations into bubble territory, with some market observers also drawing comparisons to the meme-stock frenzy that gripped Wall Street in recent years.<\/p>\n

The Elon Musk-led company has surged nearly 50% from its initial public offering price<\/a> of $135 in less than a week, vaulting into the ranks of the world’s most valuable companies despite reporting losses and offering no clear timetable for profitability from several of its ambitious long-term projects.<\/p>\n

Analysts say the stock’s rapid ascent highlights a growing disconnect between valuations and fundamentals across parts of the technology sector.<\/p>\n

Swissquote’s Ipek Ozkardeskaya said SpaceX’s surging share price after its IPO last week is a signal that rising technology stocks could be in bubble territory.<\/p>\n

“SpaceX is perhaps the biggest red flag that today’s technology rally is reaching a point where valuations no longer make sense,” Ozkardeskaya, said.<\/p>\n

The stock was up by about 3% during premarket trading on Wednesday.<\/p>\n

Valuation climbs despite unanswered questions<\/h2>\n

SpaceX shares rose 4.8% on Tuesday to close at $201.80, giving the company a market capitalization of roughly $2.7 trillion.<\/p>\n

The gain allowed SpaceX to surpass Amazon<\/a> in market value and briefly overtake Microsoft during intraday trading before retreating later in the session.<\/p>\n

The company’s valuation has increased by roughly $800 billion since its IPO last week.<\/p>\n

The rally has come despite lingering questions about the profitability of several key initiatives, including its AI investments and broader space infrastructure ambitions.<\/p>\n

SpaceX generated $18.7 billion in revenue last year but reported a net loss of $4.9 billion after incorporating the results of xAI, which remains heavily loss-making.<\/p>\n

Unlike many of Wall Street’s largest technology companies, SpaceX has yet to demonstrate the sustained profitability that typically supports multi-trillion-dollar valuations.<\/p>\n

Volatility fuels meme-stock comparisons<\/h2>\n

Tuesday’s trading session further underscored investor concerns about speculative activity surrounding the stock.<\/p>\n

SpaceX shares surged as high as $225.64 during the day before surrendering most of those gains by the close.<\/p>\n

“It’s a $2.5 trillion company, but it certainly feels like one of those meme stocks, the way it’s trading,” said Joe Saluzzi, co-head of equity trading at Themis Trading in a Reuters report.<\/p>\n

“We’ve seen momentum in the past; they just tend to run and you have to be very, very careful with these types of names.”<\/p>\n

Saluzzi is not the only one. CNBC host and market expert Jim Cramer also compared SpaceX to a meme stock.<\/p>\n

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Maybe it's okay to you, but I would hate to see a meme stock–what SpaceX stock has become–walked to the size of Nvidia over a series overnight moves with no sellers. But that seems to be the goal. Maybe early release of those who want to go?? I am uncomfortable watching a stock go up ten points in a couple of hours of trading. And i LIKE the stock!! <\/p>\n