SpaceX IPO Mania, M&A Heats Up, Dollarama Rises While Dynamite and Adobe Drop
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What is the main topic discussed in this episode?
Investing is simple, but don't confuse that with thinking it's easy. A stock is not just a ticker. At the end of the day, you have to remember that it's a business.
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
This has to be one of the biggest quarters I've seen from this company in quite some time.
Welcome to the Canadian Investor Podcast. I'm Simon Beranger. I'm back with my co-host, Dan Kent. We have a fun and jam-packed episode today. So we're going to start with SpaceX and its highly anticipated IPO that happened last Friday and why the valuation, the limited public float, and the upcoming share unlocks are worth paying attention to. We'll also touch on a busy start to the week on the acquisition front with deals involving Fox and Roku, Salesforce and American Express. Then we'll move over to the Canadian side of the earnings, including Dollarama's strong rebound quarter, Group Dynamite big quarter. post earning drop and adobe where the result looks solid on the surface but the market clearly had other concerns if we have time we'll also touch on oracle depending how long it takes and then just a quick note i'm sure some of you are aware of the gildan short report we will be going over that on monday in more details so we won't really touch on it in this episode
Yeah, and we have kind of a segment going over, I think I probably pulled 10 or 15 years worth of kind of high profile Canadian short reports that have been issued, what happened, how they did afterwards, things like that. So the Monday episode will be a good one. But let's get into SpaceX. It was a success, I would say.
I would say it was a success. SpaceX, like I mentioned, made its IPO debut, debuted as an IPO on June 12th. So having trouble with that one there. And the stock is up more than 30 percent based on the IPO price of one hundred and thirty five dollars. It values the company at more than two point six trillion dollars. It's placing SpaceX. in the same company in terms of market cap as a Microsoft, Amazon, TSMC, and Broadcom as well. Actually, it's within that group and then it's above actually fairly decent amount above in terms of market cap over Broadcom, Saudi Aramco, and even Meta. And note how a lot of people might hear these names. Well, all of these companies are very profitable. Unlike SpaceX. So that's one of the big things.
It's trading at a valuation. And of course, it's quite volatile for a company this large right now. But it's trading at around 140, 150 times sales just based on Q1 2026 revenues. And it's not easy to find data if you want to start comparing of what we saw during the dot-com bubble. Because it was back in the 1990s. And for those that weren't born in the 1990s, the internet was definitely more in its infancy. And I did find an interesting article, literally like from back in the day where you would publish an HTML from David Simons in March of 1999. It was from, I can't remember the exact university, but essentially it was an article where... very old school and he just highlighted the valuations and apparently yahoo which i believe was profitable at the time was trading 130 times sales just to give an idea so this is definitely reminiscent of the dot-com bubble in terms of the sheer pricing in terms of sales and obviously the dot-com bubble also saw a lot of companies that barely had any sales and were not profitable just trading at pretty crazy valuation but again it's not that easy to find data
Going that back. So before I continue, any comments here on the IPO?
What are the implications of SpaceX's potential IPO?
Yahoo would have been... That would have been pre-Google, would it not? I think Google was founded maybe late 1990s. But Yahoo was supposed to be like the biggest search engine you could get. They were going to be one of the larger ones. But obviously... Yeah, Yahoo was big.
They were huge. I know it may be weird for younger listeners, but Google was not the...
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