Latest / Go Big with Gib Podcast / Ep. 128 SpaceX Goes Public

Transcript

Ep. 128 SpaceX Goes Public · Go Big with Gib Podcast

• 0:00
  SPEAKER_00: Welcome to the Go Big With Gibb podcast, where we talk to professionals, business owners, and entrepreneurs about their big wins.
• 0:10
  SPEAKER_00: Welcome back to Go Big With Gibb.
• 0:12
  SPEAKER_00: Today we're talking about one of the biggest events in financial history, the SpaceX IPO.
• 0:17
  SPEAKER_00: On Friday, June 12th, SpaceX officially went public under the ticker symbol SPCX.
• 0:24
  SPEAKER_00: The company priced its shares at$135 and raised approximately$75 billion in what became the largest IPO ever.
• 0:33
  SPEAKER_00: The offering valued SpaceX at roughly$1.77 trillion right out the gate.
• 0:39
  SPEAKER_00: Let that sink in.
• 0:41
  SPEAKER_00: A company that started with a goal of making humanity a multiplanet species is now worth more than most countries' entire stock markets.
• 0:50
  SPEAKER_00: And investors didn't waste any time.
• 0:53
  SPEAKER_00: The stock opened above its IPO price and immediately took off.
• 0:56
  SPEAKER_00: Within days, shares traded as high as$225.
• 1:01
  SPEAKER_00: As of June 17th, the stock sits around$201 per share.
• 1:06
  SPEAKER_00: It's nearly a 50% gain from the IPO price in less than a week.
• 1:10
  SPEAKER_00: So the question everyone is asking is simple.
• 1:13
  SPEAKER_00: Is SpaceX really worth that much money?
• 1:16
  SPEAKER_00: To answer that, we need to talk about the valuation.
• 1:18
  SPEAKER_00: Many investors focus on the price of a stock.
• 1:21
  SPEAKER_00: Professionals focus on what they're paying for the business behind the stock.
• 1:25
  SPEAKER_00: One of the most common measurements is called the price to earnings ratio or PE ratio.
• 1:30
  SPEAKER_00: Here's the simple version.
• 1:32
  SPEAKER_00: Imagine a company earns$1 per share each year.
• 1:35
  SPEAKER_00: If investors are willing to pay$20 for that share, the PE ratio is$20.
• 1:40
  SPEAKER_00: If investors are willing to pay$100 for that same dollar of earnings, the PE ratio is$100.
• 1:47
  SPEAKER_00: The higher the PE ratio, the more future growth investors are expecting.
• 1:51
  SPEAKER_00: And that's exactly what's happening with SpaceX.
• 1:54
  SPEAKER_00: Investors aren't buying SpaceX for what it earns today.
• 1:57
  SPEAKER_00: They're buying what they think it can become tomorrow.
• 1:59
  SPEAKER_00: They're betting on Starlink.
• 2:01
  SPEAKER_00: They're betting on reusable rockets.
• 2:03
  SPEAKER_00: They're betting on lunar missions.
• 2:05
  SPEAKER_00: They're betting on Mars.
• 2:07
  SPEAKER_00: And increasingly they're betting on artificial intelligence and data infrastructure as well.
• 2:12
  SPEAKER_00: In other words, Wall Street isn't valuing SpaceX as a rocket company.
• 2:17
  SPEAKER_00: It's valuing SpaceX as a platform company with multiple trillion dollar opportunities.
• 2:22
  SPEAKER_00: Now, whenever a stock surges this quickly after an IPO, emotions can run high.
• 2:27
  SPEAKER_00: Some investors look at the move and say, I missed it.
• 2:30
  SPEAKER_00: Others look at it and say, this is only the beginning.
• 2:33
  SPEAKER_00: The truth is, nobody knows, but history teaches us something important.
• 2:37
  SPEAKER_00: The biggest winners in the market often look expensive before they become even more expensive.
• 2:42
  SPEAKER_00: Think about Amazon, think about Tesla, think about NVIDIA.
• 2:46
  SPEAKER_00: Each of those companies looked outrageously expensive at various points in their history, yet they continue to create enormous wealth for long-term investors.
• 2:54
  SPEAKER_00: That doesn't mean SpaceX will follow the same path.
• 2:57
  SPEAKER_00: It simply means that valuation alone rarely tells the whole story when a company is changing the world.
• 3:03
  SPEAKER_00: For me, the real lesson isn't about rockets, it's about vision.
• 3:07
  SPEAKER_00: The market rewards businesses that solve massive problems and pursue massive opportunities.
• 3:13
  SPEAKER_00: Elon Musk and SpaceX has spent more than two decades building technology that many people thought was impossible.
• 3:19
  SPEAKER_00: Today, public investors finally have a seat at the table.
• 3:22
  SPEAKER_00: Whether the stock goes to 300 or back to 135, one thing is clear.
• 3:27
  SPEAKER_00: SpaceX has captured the imagination of investors around the world.
• 3:31
  SPEAKER_00: And when innovation, vision, and capital all come together, extraordinary things can happen.
• 3:36
  SPEAKER_00: That's all for today.
• 3:37
  SPEAKER_00: Keep thinking bigger, keep investing in yourself, and as always, go big.
• 3:48
  SPEAKER_00: If you haven't already, go follow us on social media at GibIrs.
• 3:52
  SPEAKER_00: We'll see you next time.