SpaceX, founded by CEO Elon Musk, has quickly become one of the most traded stocks on Wall Street, with its initial public offering (IPO) shattering trading volume records. The company’s ambitious plans, including data centers in space and perfecting its rocket launch capabilities, have ignited outsized interest from investors.

Investor Interest

Investors who bought and held SpaceX stock are experiencing volatility, with shares soaring 15% in their first week of trading before falling 17% in their second week. Despite this, people are still eager to get involved, with SpaceX consistently being in the top two most traded stocks every day since its IPO on trading platform Interactive Brokers.

According to Steve Sosnick, chief strategist at Interactive Brokers, “I don’t recall seeing one stock dominate our customers’ activity in this manner.” The stock’s initial post-IPO surge briefly lifted SpaceX’s market value above Amazon and Microsoft, with a market value of over $150 a share.

Market Performance

SpaceX has enormous business ambitions, including data centers in space and perfecting its rocket launch capabilities. However, the company is burning cash on its AI businesses, and investors are making a bet that the company will be able to reach profitability in the future. Jay Ritters, professor emeritus at the University of Florida, notes that IPOs with the most volatility tend to be highly valued growth companies, and SpaceX certainly fits into this category.

SpaceX has officially joined the Russell 1000 and will join the Nasdaq 100 in July, meaning millions of Americans might own the stock indirectly through index funds in personal portfolios or their retirement accounts. Wall Street is also building an entire ecosystem around the stock, with investment firms launching new exchange-traded funds to give investors more ways to interact with the stock.

Original reporting: KRDO (Colorado Springs metro) — read the source article.