SpaceX, founded by CEO Elon Musk, has quickly become one of the most traded stocks on Wall Street, with its initial public offering (IPO) day ranking in the top five most active trading days in Charles Schwab’s history.

Investor Interest

The company’s IPO has ignited outsized interest from investors, with many eager to buy into the company’s ambitious plans, including data centers in space and perfecting its rocket launch capabilities.

According to Steve Sosnick, chief strategist at Interactive Brokers, ‘I don’t recall seeing one stock dominate our customers’ activity in this manner.’ SpaceX’s IPO was the largest single day of net buying from retail investors in Citadel Securities’ history, outpacing the previous record by 50%.

Market Performance

SpaceX’s stock has experienced volatility, soaring 15% in its first week of trading before falling 17% in its second week. However, this has not dissuaded investors, with the stock consistently being in the top two most traded stocks every day since its IPO on trading platform Interactive Brokers.

Investors are not just buying into the company’s business plans, but also into Elon Musk’s track record of success. As the richest man in the world, with a net worth eclipsing $1 trillion after the SpaceX IPO, many believe that Musk’s involvement is a guarantee of success.

However, some analysts have cautioned that the company’s valuation is not based on fundamentals, but rather on sentiment. As Howard Chan, founder and CEO at Kurv Investment Management, noted, ‘Most of the companies Elon runs are really not particularly valued on fundamentals, but rather on sentiment.’

Despite this, SpaceX has officially joined the Russell 1000 and will join the Nasdaq 100 in July, making it an attractive option for investors looking to diversify their portfolios.

Original reporting: KTVZ (Central Oregon) — read the source article.