00:00Turning to SpaceX, investors bracing for a potential hit when $101 billion worth of stock
00:05becomes available today after the first part of the lockup agreement expires. Joining us now is
00:09Bloomberg's Lien Al-Rashtan. This is just the first new offering, Lien. How are investors
00:15anticipating it will be received by the market? Hi, Vani. Even some of SpaceX's veteran backers
00:24are kind of unsure of what to expect. This is somewhat unprecedented. This many shares,
00:30the shares variable are going to be doubling today of a company that's already huge. This
00:35is kind of massive, unprecedented. So we're not sure how the stock market is going to react.
00:41And some of the people most familiar with the company, their oldest investors, are also unsure
00:46of how the stock price will be. We know that the stock is under a lot of pressure. We saw
00:52with the earnings, the expenditure around AI was massive. And that didn't really appeal
00:58to investors. The stock went down 14% yesterday. So really, it's coming. The new shares are
01:05landing at a time where the company is already under pressure and investors are unsure of
01:11what to do. That said, I suppose even this portion of the sell-off might look, might make
01:17the shares look attractive to some new investors if you did believe some of the price targets
01:22that the street has put out there? Yeah. There's relatively been a lack of transparency compared
01:30to other companies in the stock market around SpaceX. So a lot of the predictions and a lot
01:38of the estimates that the company gives have been extremely ambitious. But we also have to
01:44look at this as not being not the only time the shares will be available. The company has this
01:49complex nine stage lockup structure that's going to expire in December. So we'll have 1.55 billion in
01:59shares today. But then that's that number is going to more than triple by December. So there's more
02:06pressure specifically today. But it's probably going to increase until the end of the year. So investors are
02:12kind of holding back wanting to see more on what happens with the company, more of their analyst
02:18calls, get a better sense of structures around these ambitious claims around Starship data centers in
02:24space and the AI business.
Comments