SpaceX’s $1.75T IPO & Canadian Banks Keep Rallying

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The Canadian Investor 41 min 3 speakers 3 chapters transcribed 3 months ago
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What is the main topic discussed in this episode?

Simon Belanger 0:01
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.
Dan Kent 0:12
Just my reminder to people who own cyclicals, don't be surprised when there's a cycle.
Simon Belanger 0:17
If there's uncertainty in the markets, there's going to be some great opportunities for investors.
Braden Dennis 0:23
This has to be one of the biggest quarters I've seen from this company in quite some time.
Simon Belanger 0:31
Welcome back to the Canadian Investor Podcast. I'm Simon Beranger. I'm back with Dan Kent. We have the fun episode. It feels like earnings season's never ending. We'll be talking about SpaceX. upcoming IPO. We'll also be talking about Nvidia's recent results, which were blockbuster, but the stock didn't move too much. We'll be talking about Walmart, Lowe's and Home Depot and what they're saying about the consumer and the caution that they're advising in terms of consumer spending, especially because of higher oil prices that we're seeing. And then you'll go over Scotiabank. So the start of Canadian bank earnings and And if we have time, we'll talk about National Bank. I'm not sure if we'll be able to get there.
Simon Belanger 1:16
So it should be a fun episode, a little bit of everything, some Canadian content, possibly the largest IPO in history coming up as well. So some fun stuff to talk about.
Braden Dennis 1:27
Yeah, I think we'll have probably a more in-depth episode on the banks probably next week because we'll get more of them bunched in. But yeah, the Canadian banks look pretty good right now, to be honest. They posted some outstanding quarters from what I've seen this morning. I didn't have a chance to look into BMO, but it should be a pretty interesting episode. A lot of... kind of consumer-sensitive stocks reporting. And I haven't had a chance to look into this SpaceX IPO.
Simon Belanger 1:53
Oh, it's something. It's something. So let's get started. Let's get started with SpaceX. Obviously, the big news, SpaceX released its S1. So an S1 will be released when a company is going to IPO. It gives... essentially an overview of the company, the financials in recent years. So it gives you a much better idea like what's under the hood for a company. Obviously, it's a massive document. So I did not read the whole thing, but I went through the most important section. I'll drill down to what it looks like, what the company makes in terms of its main segments. I'll The S-1 does give you a good view of the business and how profitable it is, like I mentioned, but we still don't know what the valuation and the timing of the IPO will be.
Simon Belanger 2:50
There is speculation that it could be around June 12th or June 12th, but still that hasn't been confirmed. And we are recording this on May 27th, so it's possible by the time that you hear this. There's going to be a specific date announced for the IPO. On the valuation front, the number I've seen most quoted was $1.75 trillion in terms of valuation and that they're looking to raise around $75 to $80 billion in capital. Now, that would be valuation specific. I'm not sure in the amount of capital raised, though, but I'm pretty sure that would be a record as well. So the valuation would be a record for an IPO. It would be the largest IPO ever. The company has three main segments, Starlink slash connectivity, which revolves around satellite internet and related connectivity services.
Simon Belanger 3:41
So the space segments, so the launch, the rockets, which includes rocket launches, cargo mission, NASA work, defense launches, and their Dragon, Falcon, and Starship development. And then finally, last but not least, xai slash ai which includes grog x slash twitter after the reported xai merger with basex so essentially that's the general overview of what it is any comments on that before i drill down a bit more into the numbers here
Braden Dennis 4:13
No, I was just looking at the market caps of like the largest US companies and this would put it at ninth. It would be around the ninth at $1.75 trillion valuation.
Simon Belanger 4:25
Yeah.
Braden Dennis 4:26
So just ahead of, it'd be bigger. It would go right in between Meta and Berkshire Hathaway.

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