Instant Reaction: SpaceX Jumps in First Trades Following Record $75 Billion IPO

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Bloomberg Tech 17 min 6 speakers 8 chapters transcribed 8 days ago
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What’s the immediate market reaction to SpaceX’s record‑breaking $75 billion IPO?

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Unknown 1:11
This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world.
Kayleigh Lyons 1:21
I'm Kayleigh Lyons in Washington, but clearly all eyes are on New York today as SpaceX launches into public markets. A record-setting IPO of $75 billion priced at $135 a share. The stock opens on the Nasdaq 11% higher than that at $150. And as we speak, down at the Nasdaq where this trading got underway, we find Bloomberg's Yahaira Anand who will check in shortly. within just a moment as we consider it raised 75 billion dollars in that initial offering valuing the company at just about 1.8 trillion dollars that valuation that market cap obviously significantly higher with the gain we are seeing today north of two trillion dollars so let's go to yahira now at the nasdaq for more so yahira obviously we're setting uh records here what is the vibe like at the nasdaq right now it seems everything in this process has gone pretty smoothly

How did the Nasdaq floor feel as SpaceX shares opened above the IPO price?

Yahaira Anand 2:08
Yeah, pretty smoothly for the biggest IPO we've ever seen. And I will say the excitement, especially in the last hour as we were getting closer to trading, was palpable. You felt it here at the Nasdaq. They are all scrambling, making sure it all went off without a hitch. And then outside you have all the Musk fans gathering, hoping to get a glimpse of him. But as you and I know, he was over in Texas. But as you said, SpaceX has officially begun trading and with the stock opening at $150 a share above its $135 IPO price. And that gave investors an immediate gain of roughly 11%. But now you said it is trading above that. But this values a company at approximately just under $2 trillion, as you said, Kayleigh.
Yahaira Anand 2:58
But it instantly put SpaceX among the most valuable companies in the world. More valuable than Tesla itself, of course, another Elon Musk-owned company, Meta, and even Saudi Aramco.
Kayleigh Lyons 3:12
All right, Bloomberg's Yahair Anand, live at the NASDAQ as SpaceX debuts. Thank you so much. So let's get more on this as we turn to Craig Trudell, our managing editor of Global Business Americas here. at Bloomberg. And Craig, obviously, while you hold that title now, you also led for a long time Bloomberg's autos coverage. You are very familiar with Elon Musk as the CEO of Tesla, which obviously, while being an auto company first and foremost, also in financial markets and public markets, was the way to bet on Elon Musk.

Why was SpaceX’s IPO price set at $135 per share without a traditional price‑discovery process?

Kayleigh Lyons 3:43
We now have a second channel. for those bets in SpaceX. Whether or not these two get rolled together at some point, I'm not sure. But your reaction, please, to the appetite we are seeing for SpaceX as it debuts today.
Craig Trudell 3:54
Yeah, I think it's fascinating to see, yes, a strong debut for SpaceX, a rotation maybe a little bit out of Tesla, which is something that we were really braced for, but not anything disastrous. I mean, we've seen on an intraday basis the stock fall about 3%, but as of this moment, it's a little less than that, about 2.8%. This is a company that has been quite volatile over the years in its own right, And if sort of that track record applies to SpaceX, then we should be sort of in for a bumpy ride here.

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