00:00This story, I want to talk a bit more about those and SpaceX earnings.
00:03So let's bring in Matt Maley, who's chief market strategist at Miller Tabak & Co.
00:06Great to see you again, Matt.
00:08So the stock dropped despite revenue beating expectations.
00:12Doesn't Wall Street believe the growth story yet?
00:16Well, they're certainly nervous about it.
00:18But we also have another issue that's involved here with this,
00:22you know, the unlocking of the ability to sell for some of these insiders
00:27who've been holding on to stock and have large gains.
00:31But, you know, there are this whole story that you guys were just talking about
00:35when it comes to CapEx.
00:37I mean, their CapEx spend for the first half of this year of over $28 billion.
00:42I mean, that's almost as much as they raise in the IPO.
00:46So this has really ramped up a lot more than people were thinking.
00:49And, you know, it raises the concerns about what kind of free cash flow will they have,
00:53not just over the rest of this year or the next year or so,
00:56for a couple of years.
00:58So, you know, it does, you know, as you were just talking about,
01:02the long-term, very long-term prospects still remain very good.
01:07And, of course, people betting against Elon Musk has not been a profitable venture
01:10over the years.
01:11But with this situation where some of these lockups will be coming offline,
01:17literally tomorrow, people are a little bit scared,
01:21or investors are a little bit scared to step to the plate and purchase stock right now.
01:24I mean, there is, as you say, this big chunk of insider shares becoming sellable this week
01:29right after the earnings report.
01:31You know, are investors really about to cash out before the market's even worked out
01:36what SpaceX is really worth?
01:39Well, one of the things, I mean, like I said, there's like over $100 billion worth of stock
01:45that will be available for sale.
01:46Now, like you say, I can't imagine these insiders who have worked for the company
01:51for all these years are going to sell all of their shares.
01:54But at the same time, you can't blame them for selling some of their shares.
01:57And it may be well into the billions here.
02:00I mean, they literally have 20 times, they've made 20 times their money, not 20%,
02:0520 times their money.
02:06So to take a little bit off the table makes sense.
02:09So I can understand with this concerns over the cap of spending that the buyers are holding off.
02:15So in other words, what's happening today isn't so much that people are dumping the stock.
02:19I think that the buyers are taking, you know, pulling back,
02:22and they want to see how things really react after this, you know,
02:25this source of supply hits the market before they step to the plate and buy some more.
02:31Oh, Matt Maley, we have to leave it there.
02:32I had so much to ask.
02:33You would have to save it for next time.
02:34Matt Maley, thanks very much.
02:35No problem.
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