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SpaceX Starts Trading as the AI Price War Heats Up · The Financial Exchange Show

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Speaker 1: a donation today. This is the Financial Exchange with Chuck
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Speaker 1: Zada and Mike Armstrong.
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Speaker 2: Chuck, Mike, and Tucker with you here on the SpaceX
1:15
Speaker 2: ipo day. We are still waiting for SpaceX to begin trading. Actually,
1:22
Speaker 2: indications that we are getting are that again, we've seen
1:27
Speaker 2: all kinds of different pricing potential throughout the morning, but
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Speaker 2: it looks like it's going to likely open somewhere between
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Speaker 2: one hundred and sixtye one hundred and seventy five dollars
1:37
Speaker 2: a share after ipoing at one thirty five. Again, we'll
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Speaker 2: see where things go once it finally does ipo, but
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Speaker 2: we are anticipating trading beginning in the near future, hopefully
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Speaker 2: during this hour so we can talk about, you know,
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Speaker 2: some of the action that we've seen there. Markets remained
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Speaker 2: very choppy from minute to minute and day to day.
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Speaker 2: Yesterday a big upward move on optimism regarding a deal
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Speaker 2: getting done between the United States and Iran. Then in
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Speaker 2: pre market today some cold water thrown on that after
2:12
Speaker 2: a post from President Trump on truth Social where he
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Speaker 2: effectively I'll use his quote just to make sure I
2:21
Speaker 2: get it right here, effectively said quote. The terms that
2:26
Speaker 2: are on linked out to the fake news have nothing
2:27
Speaker 2: to do with the terms that were agreed to in writing.
2:29
Speaker 2: What they said, including their weak and pathetic statement on
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Speaker 2: having a deal, bears no relation to the truth. He
2:34
Speaker 2: went on a little bit further, but some markets ended
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Speaker 2: up falling on that net. We saw the S and
2:40
Speaker 2: P fall about seventy points from being up forty points
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Speaker 2: pre market to down thirty during early trading.
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Speaker 3: The Iranian Foreign Minister.
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Speaker 2: Say it Abbas Ragatchi then came out fifteen minutes ago
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Speaker 2: and said, quote, the Islamabad Memorandum of Understanding has never
2:57
Speaker 2: been closer pending its finalization, the media should be frame
3:00
Speaker 2: from entering speculation about its content in line with our
3:03
Speaker 2: responsible and transparent approach. All details will be shared with
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Speaker 2: the publican in due course. And so that has caused
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Speaker 2: a rebound in the S and P now back up
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Speaker 2: forty points. So there's just a lot of you know,
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Speaker 2: movement back and forth that is, you know, causing some
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Speaker 2: volatility in markets, and I'm sure the SpaceX ipo is
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Speaker 2: exacerbating that as well as people try to potentially you know,
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Speaker 2: clear funding in order to be able to buy shares.
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Speaker 4: I haven't found a way of tracking this out, but
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Speaker 4: somebody on social media that I follow occasionally was able
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Speaker 4: to count thirty eight separate occasions that the President has
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Speaker 4: claimed we're close to a deal with Iran since the
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Speaker 4: war broke out.
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Speaker 2: And here's the thing, Eventually one of these is going
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Speaker 2: to be the breakthrough. I don't expect this to end
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Speaker 2: like the Korean War did, so eventually you're going to
3:54
Speaker 2: end up with hey, like this is the time. I
3:57
Speaker 2: don't know if this is the time or not. It
4:00
Speaker 2: feels like we're getting closer. Maybe I'm just kind of
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Speaker 2: wishing that we're getting closer because I want to see,
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Speaker 2: you know, minimal damage to world e world energy markets.
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Speaker 2: But we'll see if this weekend, you know, actually bears fruit.
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Speaker 2: I think I think, quite honestly, we can all kind
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Speaker 2: of like just put this to bed and like come
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Speaker 2: back on Monday, and we'll see what's happened over the weekend.
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Speaker 2: I think there's no harm in being like, let's give
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Speaker 2: this thing seventy two hours to see if we get
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Speaker 2: across the finish.
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Speaker 3: Line, Chuck.
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Speaker 4: As we are awaiting the first trades on SpaceX, we
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Speaker 4: during a segment yesterday, spoke about the normal course for
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Speaker 4: initial public offerings and companies that are in their first
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Speaker 4: year of trading. And unlick markets. Today they tend to
4:42
Speaker 4: be a bit shoppy. I think it's worth revisiting some
4:45
Speaker 4: of those statistics that we had that we had pulled
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Speaker 4: together here in terms of big IPO names and their
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Speaker 4: historical performance in the first year of trading, as we
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Speaker 4: set off with the single biggest IPO ever and and
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Speaker 4: arguably the most recognizable name to IPO since Facebook.
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Speaker 2: Yeah, and the big thing. Look it was. It was
5:08
Speaker 2: a list that I found. This is originally via Josh Schaeffer.
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Speaker 2: I don't know, you know, actually you know, it's from
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Speaker 2: Truest from Keith Lerner, Sorry who put this together. It
5:19
Speaker 2: was a little game of telephone there and basically look
5:22
Speaker 2: looked at thirty big IPOs over the last you know,
5:24
Speaker 2: fifteen twenty years. Again, some of the names in the
5:27
Speaker 2: list Facebook, Snap, Uber, Zoom, Lift, Spotify, Rivian, Core, Weave, Pallanteer, Snowflake, Door, Dash, Airbnb,
5:38
Speaker 2: like big names, like household names, and looked at the
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Speaker 2: thirty and said, okay, here's the deal. If you look
5:45
Speaker 2: at the median IPO of these and how it performed
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Speaker 2: over the next year, the median IPO lost nine percent,
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Speaker 2: the average one made fourteen. Again there's a skewed distribution,
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Speaker 2: but the maximum draw down during the first year averaged
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Speaker 2: fifty five percent. Now doesn't mean they lost fifty five
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Speaker 2: percent from start to finish during the year, sure, but
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Speaker 2: it means at some point during that year the average
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Speaker 2: one of these IPOs, you would be you know, taking it,
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Speaker 2: you'd be cutting half on what you're holding was worth.
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Speaker 2: Now it might subsequently recover. Case in point, Armholdings had
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Speaker 2: a forty three percent draw down at some point during
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Speaker 2: its first year, finished the year up one hundred and
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Speaker 2: thirty two percent.
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Speaker 3: Pretty good, So you did great on.
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Speaker 5: The other hand, if you stomached it and stomach did
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Speaker 5: On the.
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Speaker 2: Other hand, uh, if you look at robin Hood and
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Speaker 2: big like you know, people were excited about that one.
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Speaker 2: Robinhood suffered through a ninety percent draw down in year one,
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Speaker 2: still finished the year down seventy four percent. Subsequently has
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Speaker 2: done very nicely after year one. But the point is
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Speaker 2: volatility with IPOs is a feature, not a bug.
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Speaker 3: Yeah, you have to expect it.
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Speaker 2: And if if you would personally be uncomfortable seeing a
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Speaker 2: position down fifty percent, ipeels probably aren't for you because
7:12
Speaker 2: they don't just move in a straight line. Up at
7:15
Speaker 2: least not since like the ones in like nineteen ninety
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Speaker 2: nine that mostly did that during their first week or
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Speaker 2: two a trading this stuff. I wish I had been
7:23
Speaker 2: in this, in this industry then. I was, you know,
7:25
Speaker 2: a little too young, you know, a little lot too young. Yeah,
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Speaker 2: But like the stories that I've I've heard from people
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Speaker 2: who were where it's like, hey, like you basically would
7:34
Speaker 2: buy an IPO and it would go up like nine
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Speaker 2: hundred percent that week, and like that was the norm
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Speaker 2: for like a year. Now subsequently like everything went down,
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Speaker 2: you know significantly. Most of those companies you know, are
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Speaker 2: no longer in business that IPO done, uh because there
7:51
Speaker 2: was nothing real supporting them. But it must have been
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Speaker 2: just a wild time, uh to be you know, functioning
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Speaker 2: in this in this business.
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Speaker 3: Yeah, but uh yeah, we're still.
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Speaker 2: Waiting for the first SpaceX trades and we will let
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Speaker 2: you know what it does once we see it moving here.
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Speaker 3: Just sorry, good Jenna, what do you got?
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Speaker 4: Bloomberg reporting that according to Fidelity Investments, who is one
8:13
Speaker 4: of the five brokerages involved in the retail roll out,
8:16
Speaker 4: they are claiming that although there was significant demand, they
8:20
Speaker 4: were able to allocate shares to all customers who attempted
8:23
Speaker 4: to participate in the initial public offering through their platforms.
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Speaker 4: So we will see if we get any other announcements here,
8:28
Speaker 4: still awaiting the first trade on SpaceX. But yeah again
8:33
Speaker 4: historic IPO here coming today.
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Speaker 2: In markets, Yeah, I've seen various anecdotes online, you know,
8:39
Speaker 2: like you go through you know different you know, Reddit
8:41
Speaker 2: forms and this and that, and like you just see
8:43
Speaker 2: like what people are putting out there and the things
8:46
Speaker 2: I've seen. Some people did get like their full allocation
8:50
Speaker 2: for what they put in for. Others I've seen only
8:52
Speaker 2: got like two to three percent of what they put
8:54
Speaker 2: in for. So I don't know what the rhyme and
8:56
Speaker 2: reason is if certain brokerages had you know, better success
9:00
Speaker 2: or not, Like I don't.
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Speaker 5: Know alphabetical by your middle name and height.
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Speaker 2: Yeah, so that's kind of where we are right now.
9:09
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Speaker 3: Mike, what do we want to get to next year?
10:51
Speaker 3: The AI price war? I think, chuck.
10:53
Speaker 2: Ooh yeah, we touched on this a little bit yesterday,
10:57
Speaker 2: and so now we got a piece of the Wall
10:59
Speaker 2: Street Journal. It's titled the AI price wars here piling
11:02
Speaker 2: pressure on open AI and Anthropic. And the big thing
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Speaker 2: that we are seeing is that open ai reportedly talking
11:12
Speaker 2: about making big price cuts because they're expecting Anthropic to
11:15
Speaker 2: make big price cuts as well. And this gets to
11:18
Speaker 2: the question that's at the heart of the matter, which is, Hey,
11:21
Speaker 2: if the cost for building out data centers is going up,
11:25
Speaker 2: and you're not really sure how profitable you are at
11:29
Speaker 2: the moment and how much you're gonna be able to
11:32
Speaker 2: grow beyond here, Because it's again like I don't think
11:34
Speaker 2: anyone knows exactly how AI is going to you know, grow,
11:38
Speaker 2: like over the next year or two. We don't know
11:41
Speaker 2: exactly if it's gonna be like a linear path or
11:42
Speaker 2: have some fits and starts. Hey, if you're talking about
11:45
Speaker 2: price cuts at the same time the cost of your
11:47
Speaker 2: you know, product is going up to the cost of
11:50
Speaker 2: you know, building your product is going up, that's not
11:53
Speaker 2: really great for your bottom line.
11:56
Speaker 4: Yeah, and that is how it reverberates through the entire
12:00
Speaker 4: supply chain. I just don't know if we are there yet,
12:03
Speaker 4: but I think one thing's there's something pretty clear, which
12:07
Speaker 4: is I'm not sure what the right analogy is to
12:10
Speaker 4: all of this, but we are using very expensive technology
12:16
Speaker 4: to do very basic and unprofitable stuff. And you made
12:20
Speaker 4: this point yesterday check. But you know, like I was
12:23
Speaker 4: just using Gemini to help me figure out the cook
12:28
Speaker 4: time for my brisket, and you know, talking to it
12:31
Speaker 4: about the smoking that I'm doing on.
12:35
Speaker 5: We said it all on too.
12:36
Speaker 4: Ten's going right now, it's going right now. I've got
12:39
Speaker 4: my camera set up on but we're good. But yeah,
12:42
Speaker 4: that's a fairly low value usage of AI, and they're
12:48
Speaker 4: probably routing that to the same systems that somebody using
12:53
Speaker 4: a query to begin, you know, coding for a new
12:57
Speaker 4: website is And so we are using pretty much the
13:01
Speaker 4: same technology across the board and not differentiating much in
13:04
Speaker 4: terms of traffic. And so we're going to have to
13:08
Speaker 4: reach a point where and I think some customers already
13:11
Speaker 4: are where they're saying, hey, I don't need the latest
13:14
Speaker 4: anthropic model to do this type of work.
13:16
Speaker 3: I'm gonna route that traffic.
13:18
Speaker 4: To a tool from deep Seek or Ali Baba, some
13:21
Speaker 4: of these Chinese companies that are a lot cheaper, which
13:26
Speaker 4: means competition, which again I just keep going through the
13:30
Speaker 4: math and leads you down a path where you can't
13:34
Speaker 4: have the growth rates and profitability forecasts that everybody's talking about.
13:40
Speaker 2: Now, Yeah, I mean commoditization is not great for any business.
13:46
Speaker 2: It means that you are losing margin in trying to
13:49
Speaker 2: maintain your market share. It's not good for your business.
13:54
Speaker 3: I think the other.
13:55
Speaker 2: Problem, like on this particular topic is okay, like as
14:01
Speaker 2: either an individual or even even talk about this like
14:05
Speaker 2: as a company. Think about how most companies make their
14:08
Speaker 2: tech decisions. Right now, Mike, it is okay, we need
14:12
Speaker 2: a piece of software that does X great. Go find
14:15
Speaker 2: the three competitors, price them out, scope them out. Hey,
14:19
Speaker 2: we picked this one and this is what we're gonna
14:21
Speaker 2: go with. Yeah, if we're talking about hey, this model
14:27
Speaker 2: is cheapest and best for this and this one's cheap,
14:30
Speaker 2: you need like a rolodex to keep track of which
14:32
Speaker 2: one you're supposed to use in which case, and I don't.
14:38
Speaker 3: It also seems, based.
14:39
Speaker 2: On how quickly these are all evolving, how do you
14:41
Speaker 2: even know that you're still like using the right one
14:45
Speaker 2: for this specific use case going forward, Because it's not Hey,
14:49
Speaker 2: open your accounting software, it's doue. This it's well, maybe
14:52
Speaker 2: this accounting feature is best on this one and this one.
14:56
Speaker 3: It takes time.
14:57
Speaker 5: I think that's actually a surmountable.
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Speaker 2: I don't it's too confusing, Mic, It's like which, it's
15:04
Speaker 2: like trying to figure out how to stream an NFL game?
15:08
Speaker 2: How many different platforms do I need to open up
15:11
Speaker 2: before I get to the right one? Right, And I'm
15:13
Speaker 2: just gonna get frustrated.
15:15
Speaker 4: But Chuck, this is the exact reason why AI is
15:19
Speaker 4: not going to lead to massive job destruction.
15:22
Speaker 3: There's going to.
15:22
Speaker 2: Be I know, But then it doesn't have a viable
15:24
Speaker 2: use case, right for the numbers they need to get to.
15:27
Speaker 5: Yeah, for the numbers they need to get to. I'm
15:30
Speaker 5: all with you.
15:31
Speaker 4: I don't know how this stock market makes any sense.
15:34
Speaker 4: But like the argument is these types of jobs, right,
15:39
Speaker 4: someone's job is going to be to constantly assess which
15:45
Speaker 4: AI model is best to use for different tasks within
15:48
Speaker 4: a corporation.
15:49
Speaker 3: That's a useless job. That's a horrible job. I don't know.
15:55
Speaker 5: I bet it pays pretty good money.
15:56
Speaker 2: I'm sure it does. But like, what a use this
16:00
Speaker 2: job we're now going to have? Like, oh, I got
16:03
Speaker 2: to figure out like which model? Like again, I'm I'm
16:08
Speaker 2: I know this is where we're going, but like that that.
16:12
Speaker 3: Kind of sucks.
16:14
Speaker 4: I don't know, Chuck, I'm not going to judge the
16:17
Speaker 4: the quality of one job versus another, Like I don't know.
16:21
Speaker 3: We could do that. Like some jobs suck, like we
16:24
Speaker 3: can say that.
16:25
Speaker 4: Yeah, I mean, okay, there are people that you know,
16:29
Speaker 4: count pennies at utility organizations, not anymore do all sorts
16:34
Speaker 4: of different tasks that I find rather boring and silly
16:37
Speaker 4: and useless, and we pay them good money to do so.
16:40
Speaker 3: No, I'm saying the fact that this job has to
16:42
Speaker 3: exist sucks.
16:44
Speaker 2: Yeah, you know, like that's the Oh, Like, if you
16:48
Speaker 2: want to use AI at this company, you need to
16:52
Speaker 2: like go and talk to Bill and he'll tell you
16:54
Speaker 2: which one.
16:54
Speaker 3: To use for which tasks. Yeah.
16:57
Speaker 2: Like that's like being told, like, here's your computer and
17:01
Speaker 2: this is like the key that you need to hit
17:03
Speaker 2: if you want to do like this, as opposed to, hey,
17:07
Speaker 2: open up Excel and figure it out.
17:09
Speaker 3: Yeah, we have experts for all that stuff.
17:11
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17:14
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18:15
Speaker 2: I'm talking about this piece from the Wall Street Journal.
18:16
Speaker 2: AI is turbo charging the spamosphere, amping up prolific text
18:21
Speaker 2: message scams.
18:22
Speaker 5: I haven't been flooded with them.
18:23
Speaker 3: I haven't either.
18:24
Speaker 2: I feel like it was worse. I mean again, personally,
18:27
Speaker 2: I think it was worse a couple of years ago.
18:29
Speaker 2: But at this point I'm not seeing anything that's that's.
18:34
Speaker 3: Unique on that front.
18:36
Speaker 2: But it does make sense that, yeah, you know, if
18:38
Speaker 2: you have AI, that can go and do you know
18:41
Speaker 2: a bunch of these things, you know, using large language
18:44
Speaker 2: models for writing in theory, it can be easy, you know,
18:48
Speaker 2: make some of these scams easier. But we've already had
18:51
Speaker 2: you know, like a lot of the big scams that
18:53
Speaker 2: are out there automated using bots. Anyways, I don't know
18:55
Speaker 2: that AI is some kind of game changer for text
18:58
Speaker 2: message scams. Yeah, I'm more nervous about what it means
19:01
Speaker 2: for like video based or audio based ones in terms
19:04
Speaker 2: of hey, like you've got to you know, you know,
19:08
Speaker 2: call in order to do X, Y and Z with
19:10
Speaker 2: your financial institution. Are they going to be able to
19:13
Speaker 2: successfully identify that it's you versus an aiclone of you.
19:17
Speaker 4: Well, that Chuck and just what we are already seeing
19:19
Speaker 4: from this mythos thing give me a lot of concerns
19:21
Speaker 4: about cybersecurity generally.
19:23
Speaker 3: Yeah, yeah, that's true.
19:25
Speaker 2: Just take a quick break when we return, We've got
19:28
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19:31
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Speaker 3: All space x iPod here.
20:00
Speaker 6: We're all kind of just waiting around for it to
20:02
Speaker 6: actually IPO. According to Bloomberg, SpaceX indications continue to trend
20:09
Speaker 6: lower now at one hundred and fifty five dollars per share,
20:13
Speaker 6: fifteen percent above the IPO price. As for markets, the
20:18
Speaker 6: Dow is up nine tenths of a percent, SMP five
20:21
Speaker 6: hundred up two thirds of a percent, NASDAC up over
20:23
Speaker 6: half a percent, Russell two thousand is up one and
20:27
Speaker 6: a half percent, Tenure treas reeled is up one basis
20:30
Speaker 6: point at four point four to seven percent, and Oil
20:33
Speaker 6: down about four percent, trading at eighty four dollars a barrel.
20:39
Speaker 6: Several space stocks continuing to see attention leading up to
20:44
Speaker 6: this IPO. Echo Star down by seven percent after rallying
20:47
Speaker 6: eleven percent yesterday, Ast Space Mobile climb twelve percent yesterday,
20:52
Speaker 6: down eleven percent today. In rocket Lab shares down by
20:55
Speaker 6: six percent, Airline stocks including United American and Delta gaining
20:59
Speaker 6: about one percent with the retreat in oil prices today
21:04
Speaker 6: with increased sentiment around a potential piece deal with Iran,
21:08
Speaker 6: and Adobe down by seven percent after the software giant
21:11
Speaker 6: beat on the top and bottom lines in the previous quarter. However,
21:15
Speaker 6: Adobe announced that its CFO would leave the company on Monday.
21:20
Speaker 6: I'm Tucker Silva and that is Wall Street Watch.
21:23
Speaker 3: Did it? Did it? IPO? Is it? Mike? Did we?
21:27
Speaker 5: No, we haven't started training, but you mentioned one fifty five.
21:30
Speaker 4: I now see Bloomberg going in at one.
21:34
Speaker 6: Okay, okay, so we'll keep you posted on that. Trivia
21:37
Speaker 6: question of the previous segment was how many US cities
21:40
Speaker 6: are hosting World Cup Games this year? That would be
21:44
Speaker 6: eleven and Bill and Stone of mass is our winner
21:47
Speaker 6: today taking on a Financial Exchange Show t shirt. Congrats
21:50
Speaker 6: to Bill. We play trivia every day here on the
21:53
Speaker 6: Financial Exchange. See complete contest rules at Financial Exchange Show
21:57
Speaker 6: dot com.
21:58
Speaker 3: Here's the never fails. It makes me what the wag bytail?
22:03
Speaker 3: Where that comes?
22:04
Speaker 1: I want a Well, you've got questions, We've got answers.
22:09
Speaker 1: It's time for the Money Matters Mailback. We are tackling
22:13
Speaker 1: your calls and emails on everything from economic policy to
22:16
Speaker 1: global markets and everything in between. Leave us a voicemail
22:19
Speaker 1: at three three nine three nine nine four three three
22:22
Speaker 1: three and you might hear it on the show. You
22:24
Speaker 1: can also email your question to TFE Show at gmail
22:27
Speaker 1: dot com. Now it's time for the Money Matters mail bag.
22:33
Speaker 6: All right, tap four the Money Matters a mail bag.
22:35
Speaker 6: This week, we'll get through two questions here, uh. First
22:40
Speaker 6: one regarding some news this week regarding social Security, A
22:45
Speaker 6: listener says should the or ask should the forecast? Is
22:49
Speaker 6: social security shortfall in twenty thirty two? Change plans to
22:52
Speaker 6: wait until seventy would make more sense to take social
22:56
Speaker 6: Security at sixty seven in this year rather than wait
23:01
Speaker 6: and maximize payoffs.
23:03
Speaker 4: I'll take this one, chuck, mainly because I literally got
23:06
Speaker 4: this exact same question from somebody this morning, what should
23:12
Speaker 4: we do with social Security? Just reading the piece that
23:15
Speaker 4: it's going to trust fund run drive two months earlier
23:18
Speaker 4: than anticipated. And look, my answer to that person was,
23:24
Speaker 4: I don't think you should pull it early. I don't
23:26
Speaker 4: think that we should make a decision on social security
23:28
Speaker 4: about fears as to what might happen with the program
23:31
Speaker 4: in the future, and especially for somebody that is already
23:35
Speaker 4: in their mid sixties, my personal anticipation is that they
23:40
Speaker 4: will not be affected substantially by changes to the Social
23:44
Speaker 4: Security program.
23:47
Speaker 5: That said, I get how nerve racking.
23:49
Speaker 4: That is right, And certainly if if the reality is
23:53
Speaker 4: that benefits get cut by what is it, twenty four
23:57
Speaker 4: percent across the board in order to make the program
23:59
Speaker 4: sustainable at that point, then claiming now is definitely the
24:02
Speaker 4: thing to do in that case and maximize what you
24:05
Speaker 4: can get for now.
24:07
Speaker 5: Where I come back to is I am very.
24:11
Speaker 4: Again it's anybody's guest, but I am not confident that
24:14
Speaker 4: that is going to be the result. I have a
24:16
Speaker 4: very difficult time believing that lawmakers are going to take
24:20
Speaker 4: benefits away from their single largest voting block.
24:23
Speaker 5: That would be political suicide.
24:26
Speaker 4: So I would have a tough time making a financial
24:29
Speaker 4: decision out of fear of the program going belly up.
24:32
Speaker 2: Yeah, if if you look at pretty much every major
24:37
Speaker 2: piece of legislation that has affected households in the last
24:42
Speaker 2: twenty years, they've basically all given money to seniors at
24:49
Speaker 2: the expense of younger people. Whether you're talking about the
24:52
Speaker 2: Affordable Care Act, whether you're talking about any of the
24:56
Speaker 2: Secure Acts, whether you're talking about the reckon Faction tax
25:01
Speaker 2: bill from last year. Pretty much every major piece of
25:05
Speaker 2: legislation that has directly impacted household finances is giving additional
25:11
Speaker 2: help to seniors. It's I don't think we're suddenly gonna
25:16
Speaker 2: be like, well, you know what, it's been a good
25:18
Speaker 2: run time for your twenty four percent pay cut.
25:21
Speaker 5: It's it's seems unlikely.
25:23
Speaker 3: Possible in theory, but unlikely.
25:26
Speaker 6: All right, Let's get to our second question here and again,
25:29
Speaker 6: if you have questions for Chuck and Mike for the
25:32
Speaker 6: Moneymatters mail bags, shoot us an email to tfe Show
25:37
Speaker 6: at gmail dot com. This question said, asked, how should
25:42
Speaker 6: families prepare important financial information before something unexpected happens? I
25:49
Speaker 6: mean things like bank accounts, insurance bills, mortgages, tax documents, beneficiaries,
25:54
Speaker 6: you name it. How do we prepare for that situation?
25:58
Speaker 2: Great question. I'll take this one. The Armstrong Advisory Group
26:01
Speaker 2: actually had a guide on this very topic last month,
26:05
Speaker 2: and it specifically it's about, Look, the thing that you
26:08
Speaker 2: need to do in this case is put together basically
26:12
Speaker 2: an emergency financial binder. That includes all of this information
26:18
Speaker 2: in here and how to get access to it, because
26:22
Speaker 2: it's not just about you know, okay, bank accounts and this,
26:25
Speaker 2: like this and that. A lot of times you might
26:27
Speaker 2: even need like you know, online log and information in
26:29
Speaker 2: order to be able to log in to do what's
26:32
Speaker 2: needed there in certain situations. And so the big thing
26:36
Speaker 2: is getting it all into one place, one binder, and
26:40
Speaker 2: then also updating it on a regular basis every six
26:43
Speaker 2: months or twelve months for changes that have occurred that
26:47
Speaker 2: are relevant, and keeping a log of those changes as well.
26:51
Speaker 2: So I do think it's it's worth having that all
26:54
Speaker 2: in one place. Generally, hard copy is what is recommended
27:00
Speaker 2: in a lot of cases just to not keep all
27:02
Speaker 2: of that, you know, potentially sensitive information, you know, in
27:07
Speaker 2: one online file or anything like that. But yeah, it's
27:11
Speaker 2: it's absolutely something to keep in one place simply because
27:16
Speaker 2: if anything happens to you, then I loved one, can
27:19
Speaker 2: you know, pull that binder out and say, Okay, here
27:21
Speaker 2: are the people I need to call, Here are the
27:23
Speaker 2: relevant accounts, here's how I access them in order to
27:26
Speaker 2: do X, Y and Z, And you're in good shape
27:29
Speaker 2: at that point. Any other thoughts there, Mike, no, you
27:32
Speaker 2: covered it. That's all I got there.
27:35
Speaker 6: All right, Cool, that's it from the Money Matters mail
27:38
Speaker 6: bag before we hit the brake, thought i'd passed this along.
27:42
Speaker 6: Regarding the SpaceX IPO, Matt Turner Bloomberg said, quote, We've
27:47
Speaker 6: been seeing trade indications for more than ninety minutes, and
27:50
Speaker 6: it could still be a few more hours before SpaceX
27:53
Speaker 6: shares actually open. That's pretty typical for IPOs, especially ones
27:58
Speaker 6: with as much investor.
28:00
Speaker 4: And is this Yeah, again, this is not abnormal. I
28:03
Speaker 4: know it's probably frustrating and annoying for people looking to
28:07
Speaker 4: see it go off here, but this is pretty far
28:11
Speaker 4: for the course in terms of a giant IPO. And again,
28:14
Speaker 4: this isn't just a giant ipo. This is literally the
28:17
Speaker 4: biggest IPO in history. Yeah, it's We saw similar things
28:20
Speaker 4: that the Facebook ipo. I remember sitting around for hours waiting,
28:23
Speaker 4: and I don't know exactly what time it started trading,
28:26
Speaker 4: but it was something where it's like, okay, is it
28:28
Speaker 4: gonna go already?
28:29
Speaker 2: Is it gonna It takes time. This doesn't mean anything's wrong.
28:33
Speaker 2: It doesn't mean that you know it's it's broken. It
28:34
Speaker 2: doesn't mean it's not gonna IPO. It just means it's
28:37
Speaker 2: taking some time for them to work through the order
28:40
Speaker 2: book and figure out what the initial pricing is going
28:44
Speaker 2: to be there.
28:45
Speaker 3: Let's take a quick break.
28:46
Speaker 2: When we return, we're joined by Paul Lamonica from Barons.
28:50
Speaker 1: Right after this, The Financial Exchange is now available every
28:53
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28:56
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29:23
Speaker 1: This is the Financial Exchange Radio Network. Ladies and gentlemen
29:28
Speaker 1: the weekend.
29:36
Speaker 2: As promised, we're now joined by the one and only
29:40
Speaker 2: Paul Bonica. You're to talk a little bit about uh
29:43
Speaker 2: SpaceX and Paul. Yeah, we just kicked off about thirty
29:50
Speaker 2: seconds ago.
29:50
Speaker 3: We're in the.
29:53
Speaker 7: Range. Yeah not bad.
29:55
Speaker 2: Yeah, so uh talk to me, Yeah, thank you, talker.
29:58
Speaker 2: I appreciate that. Talk to me, Paul, little bit about
30:00
Speaker 2: what we're seeing here. I know that before this there
30:02
Speaker 2: had been some ETFs and things like that that we're somehow,
30:06
Speaker 2: you know, based on their structure, able to hold a
30:09
Speaker 2: portion of them in SpaceX pre IPO shares. But now
30:13
Speaker 2: we got the real thing trading. So talk to me
30:15
Speaker 2: about what we're seeing here.
30:17
Speaker 7: Yeah, I mean it's interesting because there's one fund, the
30:21
Speaker 7: NASA ETF, that you know, was up a lot yesterday
30:28
Speaker 7: and it's now selling on the news. He's down about
30:31
Speaker 7: seven percent so far today at last check. But you know,
30:36
Speaker 7: these are funds that gave investors the opportunity to have
30:40
Speaker 7: a piece of SpaceX before the IPO. I think that's
30:44
Speaker 7: why there's been such demand. There's a fund from er
30:48
Speaker 7: shares with the ticker of XOVR that also had some
30:55
Speaker 7: pre IPO exposure. Ron Barn, whose mutual funds are a
31:00
Speaker 7: major owner of both SpaceX and Tesla. He has an
31:04
Speaker 7: ETF that's his first name and last name initial Ron
31:09
Speaker 7: b that also has some SpaceX exposure. So investors had
31:14
Speaker 7: the opportunity to get into this, so to speak, before
31:18
Speaker 7: SpaceX actually began trading.
31:21
Speaker 2: And in terms of those offerings, my understanding, having you know,
31:26
Speaker 2: looked at them a little bit is that many of them.
31:29
Speaker 2: Number One, the main thing that you're buying in those
31:32
Speaker 2: is not SpaceX, it's it's a portion of that that
31:35
Speaker 2: holding is SpaceX, but it generally was limited as to
31:38
Speaker 2: how much you could own inside of it, and so
31:40
Speaker 2: most of what you have to own is stuff other
31:43
Speaker 2: than SpaceX.
31:43
Speaker 3: Correct.
31:45
Speaker 7: That is correct. I mean there's a couple of things
31:46
Speaker 7: at play. In some respects. What people are getting with
31:50
Speaker 7: their SpaceX exposure in those funds are not directly the
31:56
Speaker 7: direct shares of space they're what are known as special
32:01
Speaker 7: purpose vehicles, which are you know, ways that people were
32:07
Speaker 7: able to buy some of the privately held shares of
32:11
Speaker 7: SpaceX from insiders, from employees, et cetera. But also, you're right,
32:16
Speaker 7: these funds obviously don't just own SpaceX. They own many
32:20
Speaker 7: other companies. In the case of NASA, there are tons
32:23
Speaker 7: of other space stocks that are part of that fund
32:28
Speaker 7: of you know, some of the other funds own of
32:30
Speaker 7: you know, some tech and other innovative, you know type companies.
32:34
Speaker 7: So you're not getting cure play SpaceX exposure. What's going
32:37
Speaker 7: to be interesting is in the next you know, a
32:40
Speaker 7: week or so, I'm writing a story today for for
32:43
Speaker 7: Barons about how there are going to be some leveraged
32:47
Speaker 7: single stock CEO excuse me funds that are going to
32:52
Speaker 7: try and have hyper exposure to SpaceX, either on the
32:55
Speaker 7: long or short side. Those are really for traders, I think,
32:58
Speaker 7: only not for your average buy and hold investor.
33:02
Speaker 2: Any thoughts as to now that SpaceX is available, you know,
33:05
Speaker 2: in publicly traded vehicles, would you anticipate that some of
33:09
Speaker 2: those one some of those ETFs and things that had
33:11
Speaker 2: held it previously, would they see assets leave in order
33:15
Speaker 2: to go and just buy the public shares now that
33:17
Speaker 2: you can just own one hundred percent exposure if you
33:19
Speaker 2: wanted to.
33:20
Speaker 7: It's possible that you could see some outflows. I mean,
33:24
Speaker 7: I think it's less likely that that will happen, and
33:28
Speaker 7: maybe more likely that if you're an investor in some
33:30
Speaker 7: of those funds, you hold on to it, maybe you
33:32
Speaker 7: trim a little bit and then you try and buy
33:34
Speaker 7: SpaceX directly as well. But I can't imagine there's going
33:38
Speaker 7: to be massive outflows. But you know, we are seeing,
33:40
Speaker 7: like I said, in the case of NASA specifically, you know,
33:43
Speaker 7: in some of the other ETFs, a little bit of
33:45
Speaker 7: the sell the news that's taking place today.
33:48
Speaker 2: Anything else interesting as it relates to what you're seeing
33:51
Speaker 2: in SpaceX and it's surrounding ecosystem.
33:55
Speaker 7: Uh. I mean I think that, you know, it's going
33:59
Speaker 7: to be fascinating to see what other space stocks do
34:04
Speaker 7: you know as a result of this, if they do
34:06
Speaker 7: get a lift now that SpaceX is public, whether or
34:11
Speaker 7: not you see other IPOs. You know, would Blue Origin
34:14
Speaker 7: ever go public the Jeff Bezos company. I mean, I
34:18
Speaker 7: think that's something that would generate maybe some excitement, not
34:21
Speaker 7: probably as much as SpaceX, but would be a fun
34:23
Speaker 7: one to watch if that were to happen, because the
34:26
Speaker 7: Battle of the billionaires or sorry, trillionaire versus billionaire now
34:30
Speaker 7: that Musk is a trillionaire apparently with the SpaceX IPO
34:33
Speaker 7: having taken place.
34:34
Speaker 2: Yeah, yeah, kind of wild stuff there. Paul, appreciate you
34:37
Speaker 2: joining us. I hope you have a great weekend. I'm
34:41
Speaker 2: assuming you're going to be tuning in for that Knicks
34:44
Speaker 2: game on Saturday.
34:45
Speaker 7: I was gonna go to a movie tomorrow night. I
34:47
Speaker 7: figured out having good stuff out there for in a while,
34:50
Speaker 7: I figured, you know, it's a good time. There's nothing
34:52
Speaker 7: going on tomorrow that I that I passionately care about.
34:55
Speaker 2: Is new York City right now, as nuts as it
34:58
Speaker 2: looks in all the videos that I see.
35:01
Speaker 7: Yeah, there is so much excitement. I mean again, I
35:04
Speaker 7: mean quickly. I think you know, people love this team
35:07
Speaker 7: in particular because it's hard not to be a very
35:09
Speaker 7: relatable team. This is not the Evil Empire so to speak.
35:14
Speaker 7: You know, of other New York teams, I think you're
35:17
Speaker 7: hard pressed to say, you know, the Jalen Brunson and
35:20
Speaker 7: Cat are like bad guys that you don't want root for,
35:23
Speaker 7: especially Annobe as well.
35:25
Speaker 3: Paul, appreciate you joining us. Have a great weekend, all right,
35:28
Speaker 3: thanks a lot you too. Talk to you guys next week.
35:30
Speaker 2: That is paul A Monica from Barons. As we did
35:33
Speaker 2: cover SpaceX now, trading initially opened at one fifty one,
35:38
Speaker 2: dip down to one forty nine eighty briefly, and it's
35:41
Speaker 2: now sitting in the one sixty one range. So we
35:44
Speaker 2: are live with SpaceX at this point, and pretty.
35:52
Speaker 3: Exciting stuff, I gotta tell you.
35:53
Speaker 4: Yeah, it's bouncing all over the place, but seems to
35:55
Speaker 4: be going fairly smoothly again, bouncing this way and that.
36:00
Speaker 4: We're now in the one to fifty six range. But yeah,
36:03
Speaker 4: all over the place. And again went off of one
36:08
Speaker 4: thirty five in terms of its IPO price and immediately
36:11
Speaker 4: up a good, you know, twenty percent in early trading.
36:15
Speaker 3: So far.
36:16
Speaker 2: One other item not my own material on this, but
36:18
Speaker 2: aren't you excited that as a result of this, Twitter
36:21
Speaker 2: is now a publicly traded company again.
36:24
Speaker 5: Right, all wrapped into there?
36:26
Speaker 4: Yeah, Tucker sent us something on that, which is Jack
36:29
Speaker 4: Dorsey also rolled some of his Twitter shares into X
36:36
Speaker 4: and so as part of that, he is getting a
36:38
Speaker 4: nice little boost in terms of his again shares an
36:42
Speaker 4: X which we got rolled into SpaceX. And now Jack Dorsey,
36:46
Speaker 4: you know, walked out with a cool what was it
36:47
Speaker 4: three million dollars Tucker, I think it was two point
36:49
Speaker 4: three two point three million dollars billion billion. Sorry, yeah,
36:53
Speaker 4: obviously Jack Dorsey doesn't care about two point three million.
36:56
Speaker 3: No, it's it's you know, not even a day's work
36:59
Speaker 3: for him, correct. Uh?
37:00
Speaker 2: Speaking of the New York Knicks, fascinating a great story
37:03
Speaker 2: actually of all of the New Yorkers that had weddings
37:06
Speaker 2: planned for this weekend that are now trying to figure out, like, guys,
37:10
Speaker 2: what do we do because no one's gonna want to
37:13
Speaker 2: actually go to the wedding, Like do we get like
37:15
Speaker 2: TVs set up at the wedding and stuff like that,
37:17
Speaker 2: Like what how do we handle?
37:19
Speaker 3: This is what they're asking And I think this is fantastic.
37:22
Speaker 3: I am with you.
37:23
Speaker 4: I've been at a wedding where the Bruins were like
37:26
Speaker 4: in I think it might not have been the Stanley
37:29
Speaker 4: Cup finals, but it was advanced rounds of the playoffs, and.
37:32
Speaker 5: Like it was tough for the couple.
37:36
Speaker 4: Yeah, people are looking at their phones, you know, consistently
37:39
Speaker 4: during the wedding. So yeah, a bit of a distraction
37:42
Speaker 4: for those weddings, and you just got to embrace it.
37:45
Speaker 3: I guess you have to. It's it's dance during halftime. Listen.
37:50
Speaker 2: You can dance and watch a basketball game at the
37:53
Speaker 2: same time.
37:54
Speaker 3: That's true.
37:55
Speaker 5: Everyone at MSG is doing something.
37:57
Speaker 6: I would just put up a projector behind the dance floor, totally.
38:01
Speaker 2: Yeah, that would be your putting right behind the DJ
38:03
Speaker 2: or the band, you know, just pop it right there
38:05
Speaker 2: and call it a day. Uh, we're done for the
38:08
Speaker 2: day and done for the week, so we'll call it
38:10
Speaker 2: and I hope you all have a great weekend.
38:13
Speaker 3: Reminder.
38:14
Speaker 2: US Soccer plays at nine pm Eastern tonight and uh
38:18
Speaker 3: We will see you on Monday.