SpaceX IPO Caps Historic Week on Wall Street

0:00 Speaker 1 John Trot always gives us a financial report, Well, give us a small financial report. What the heck happened last week? SpaceX to the Moon.

0:11 Speaker 2 To the Moon and bag Yes, good morning, John. Well, it was very volatile week for the markets last week. You saw on Wednesday the chips had a big sell off. We thought, oh, is this beginning of the end. Then on Thursday all the microchips bounced back again after President Trump said that was a piece deal ready to be

0:25 signed with Iran, even though Iran said, oh, we’re not even close to that. Wall Street decided to overlook that bit from Tehran and partied like it was nineteen ninety nine. A very strong rally on Thursday, and of course they were up on Friday because of the SpaceX situation. And indeed, on Friday morning, Iran said that they were nearer to

0:43 a deal with the US than ever before. But to be fair, there was really only one story last week, and that was the SpaceX IPO. A lot of excitement, I think because it’s Elon Musk, I mean, he drives this.

0:54 He’s such a well known personality. Whether you love him or loathe him, you cannot ignore him. And so this is the biggest ever ipo we’ve ever seen, bigger than Saudi Aramco, the Saudi Oil Company back in twenty nineteen.

1:06 Let me laid out for it, and.

1:08 Speaker 1 May have a few more and may have a few more assets than Elon Musker’s.

1:12 Speaker 2 Well, it’s finally she mations that, because when these IPOs come along, it turns out and only a fraction of these companies that ever floated on the public market. So the Saudis still own eighty percent of Saudi Aramco. It’s only twenty percent of those of us who might be lucky enough to own stock. And it’s the same with

1:28 SpaceX as well. But anyway, it came out at one hundred and thirty five dollars. It actually came on the market at about ten to mid day on Friday at one hundred and fifty dollars. Within seconds, it was up one hundred and fifty six that’s two one hundred and fifty six dollars per yare, And throughout Friday afternoon it

1:42 maintained a steady increase of somewhere between twenty and thirty percent. Now this is a bet on the future, Okay, seventy five percent of this new company is Stylink, which is the satellite launching service that is profitable. The rest of it is XII, which they only bought fairly recently. That’s going to be expensive for them going forward as they

2:00 develop aiproducts. And the other bit is SpaceX itself, which is the rocket launching business. Now that’s only ever operated at a loss so far. And everything hinges on Starship, which is their huge, fully reusable rocket. But it’s only yet not got as far as Earth’s orbit. So it’s been successful. They’ve had some crashes with it and it

2:22 hasn’t actually got into orbit, so that’s something to bear in mind. Nonetheless, this was an historic moment. Elong Must becomes the first trillionaire on paper. Always remember when we talk about these numbers and these things, it’s always on paper.

2:35 You never get the money until you cash in the chips. The other big story of the week was in cryptocurrency. Sam Bankman Free, the now jailed co founder of FTX, one of the big US cryptocurrency exchanges. He’s appealed to the Trump administration for a petition to have his pardon.

2:51 We wait to hear what they say. Meanwhile, a court on Friday, the second Circuit rejected his claim that he should be let out of jail because the clients who lost money have either been repaid or soon will be repaid.

3:03 And so we come to the week ahead Wednesday. Retail sales part of the inflation story, and of course also part of the inflation story. On Wednesday, the Fed will make a rate decision at two pm Eastern for the first time under the auspices of Kevin Walsh. No change is expected and as you know, John, and I hate

3:19 saying this to you, really, but as you know, Wall Street is fully factored in now interest rate hike before the year’s end.

3:27 Speaker 1 John, Thank you so much, John Trek, and you know how I feel. So we won’t discuss it right now and have a great weekend.

3:35 Speaker 2 Thank you, my friend, and you see you next Sunday five and a half