SpaceX Overtakes Amazon, Then Microsoft

SpaceX's hot run continues. Shares climbed about 6% on Tuesday, pushing the newly public rocket and satellite firm past Amazon—and, for a short time, Microsoft—in market value, reports CNBC. The stock's surge took SpaceX's market cap to roughly $2.94 trillion in morning trading, above Microsoft's $2.93 trillion, before slipping back. Elon Musk's firm now sits as the fifth most valuable US company, behind Microsoft, Apple ($4.3 trillion), Alphabet ($4.5 trillion), and Nvidia ($5.1 trillion). The move follows a blockbuster IPO and a roughly 20% jump in SpaceX's first full day of trading.

The rally continued Tuesday as SpaceX said it will buy AI coding startup Cursor for $60 billion. The Wall Street Journal explains the strategy there: "The Cursor deal could help SpaceX win over lucrative enterprise clients, who have largely shied away from using its in-house chat assistant Grok, which competes with Claude and ChatGPT." Grok is widely seen as lagging the top AI models.