Episode summary
Instant Reaction: SpaceX Jumps in First Trades Following Record $75 Billion IPO | Bloomberg...
Bloomberg Daybreak: US Edition
· · 16 min · Hosts: Kailey Leinz, Ed Ludlow · Guests: Yahaira Anand, Craig Trudell
Summary
SpaceX’s public debut set records immediately, with the $75 billion IPO priced at $135 a share and trading opening above that level before climbing further. The host and Bloomberg reporters framed the first-day move as a sign of intense demand, with the company valued at roughly $1.8 trillion in the offering and over $2 trillion once trading took off. They also noted that the IPO was unusual because Elon Musk, Brett Johnson and Gwynne Shotwell effectively controlled the process, rather than letting bankers run a traditional price-discovery road show.
The discussion focused on whether the valuation can be justified. Craig Trudell argued that the stock may see volatility and that skeptics are right to question a company trading at a huge multiple of sales while still not profitable in the conventional sense. Ed Ludlow said the bull case rests on a far larger future business: Starship working reliably, satellite data centers, and AI software that SpaceX says could tap a $28.5 trillion addressable market.
The panel also emphasized the circularity of SpaceX’s new AI strategy. Ludlow said recent deals with Google and Anthropic support sentiment now, but the long-term story depends on SpaceX actually delivering compute at scale. He also suggested Musk could eventually combine more of his businesses, including Tesla, into a larger structure that gives him more control.
Key takeaways
- The IPO priced at $135 a share and quickly traded well above it, signaling very strong demand for SpaceX stock.
- Craig Trudell said the debut looked strong but warned that SpaceX could be a volatile public stock, especially given valuation concerns.
- Ed Ludlow said the key long-term thesis is not rockets alone but Starship, satellite data centers and AI software tied to a $28.5 trillion addressable market.
- Ludlow said the IPO process was highly controlled by Elon Musk, Brett Johnson and Gwynne Shotwell, which reduced bankers’ influence on pricing.
- The reporters said recent compute deals with Google and Anthropic help near-term sentiment, but SpaceX still has to prove it can deliver the promised capacity.
Notable quotes
“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”
“I think it's fascinating to to see, you know, yes, a strong debut for SpaceX, a rotation maybe a little bit out of of Tesla”
“The stock opens on the Nasdaq 11% higher than that at 150 and as we speak down at the Nasdaq”
“They say there's a 28.5 trillion-dollar addressable market, and 26.5 of that is what they are calling in an umbrella or a of enterprise AI”
“It's so important to talk about how they've done this." They have data center capacity that was available”
How the episode opens
Bloomberg Audio Studios. Podcasts, radio, news. — This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world.
I'm Kailey Lines 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 Anit who will check in with in just a moment as we consider it raised $75 billion in that initial offering valuing the company at just about $1.8 trillion. That valuation, that market cap obviously significantly higher with the gain we are seeing today north of $2 trillion.
So, let's go to Yahaira now at the Nasdaq for more. So, Yahaira, 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.
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 hit 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.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- spacex ipo
- ipo market debut
- valuation jump
- trillionaire update
- space industry
Companies and tickers mentioned
- SpaceX
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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