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SpaceX (SPCX), a record rocket ride? (00:16) Adobe’s (ADBE) reward? A selloff. (02:50) Trump sees a deal. (03:57)
This is an abridged transcript.
Today’s the day.
SpaceX will begin trading on Nasdaq and Nasdaq Texas under the ticker symbol SPCX.
We caught up with an analyst as well Seeking Alpha’s Quant guy Steven Cress to find out what they had to say about what is expected to be the largest IPO in history.
We’ll start with Steve, who praised Elon Musk and all that he’s accomplished…
But at the end of the day, when I look at a company, I look at those five core investment characteristics. I look at growth, I look at value, I look at profitability.
I look at analyst revisions and I look at the stock’s momentum and if a stock doesn’t tick those boxes for me, most likely not going to be in it.
So when it comes to SpaceX…
With SpaceX, I think they’re going to have like 18 billion in revenues, which for large companies is actually pretty small in terms of revenues.
And they have negative earnings. So they’re not even earning money at this point. So probably will come. But this is not the point. If I have to compare it to my portfolio and the criteria and parameters I look for, it probably wouldn’t cut it.
David Keller from Market Misbehavior said this one is a game changer.
The fact that indexes like the Nasdaq are changing their listing requirements just to get it in the index more quickly, I think tells you about the anticipation.
And I think for better or worse is gonna change how Anthropic (ANTHRO) and anyone else wants to go public.
So, a game changer, yes. But, you still need to pay attention.
My contrarian hat, my contrarian alarm is going off that big IPOs like this usually don’t happen at the beginning of a big theme coming out. It’s usually once the theme is mature enough that people want to throw a lot of money at the idea, it’s often more in the later stages.
So that is one potential macro issue.
And ultimately Keller and Steve had the same conclusion.
For now I have to wait for the data to emerge.
That audio is from the Investing Experts podcast. Steve tells you 3 Growth and Income Stocks to Buy and he answers your questions. David Keller was on the show entitled, “Market Shifts from Risk on to Risk Off.”
I’m leaving a link to each of the shows in the show notes section.
SpaceX (SPCX) on Thursday priced its initial public offering at $135 per share, raising roughly $75 billion.
The offering surpasses Saudi Aramco’s 2019 listing by a wide margin and values Elon Musk’s company at about $1.77 trillion, or roughly $1.8 trillion on a fully diluted basis.
Adobe (ADBE) fell 6.25% on Thursday and is down 4.25% in early trading.
This happening even as Adobe reported fiscal second-quarter results and guidance that topped estimates.
For the period ending May 29, Adobe said it earned an adjusted $5.96 per share as revenue rose 13% year-over-year to $6.62B. Analysts had expected the company to earn $5.81 per share on $6.45B in revenue.
For the full-year, Adobe expects to earn between $24.35 and $24.45 per share on an adjusted basis, with the midpoint above the $23.54 per share estimate. Revenue is forecast to be between $26.5B and $26.6B, with the midpoint well above the $26.06B estimate.
In addition, Adobe said CFO and executive vice president Dan Durn is leaving the company. He will be replaced by Steve Day, who had been the company’s SVP of Corporate Finance and CFO of its Customer Experience Orchestration unit on an interim basis.
President Trump on Thursday indicated that a deal that could resolve the conflict with Iran may be finalized this weekend.
He said a “great settlement” had been reached and suggested a formal signing could take place as soon as this weekend in Europe.
When asked by a reporter whether Iran’s Supreme Leader Mojtaba Khamenei had approved the deal, Trump said, “I understand the answer is yes.”
However, Iran swiftly tempered expectations. Foreign Ministry spokesperson Esmaeil Baghaei said no final decision had been taken on any agreement with Washington. He added that large portions of the negotiating text had been completed but said no final conclusion had been reached.
Baghaei said the matter remained under review by Iranian decision-making bodies and accused Washington of repeatedly changing its positions during negotiations.
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Stock index futures in mixed territory.
Crude oil is down 4.6% at $83. Bitcoin is down 0.3% at $63,000. Gold is up 0.2% at $4,221.
The FTSE 100 is up 1.3% and the DAX is up 1.4%.
Economic calendar:
