Transcript
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This is Scott Becker with the Becker Business Podcast and the Becker Private Equity Podcast. We try and bring you daily market insights, business information, usually an interview with a brilliant leader. Today's Discussion the title today is SpaceX shoots for the Moon. So here's the discussion here and the reality is SpaceX shoots for the moon comes off the tongue, right, because people use the phrase shoot for the moon. The reality is SpaceX is really shooting for Mars and for a huge IPO valuation. And that's the topic of today's discussion. SpaceX essentially has said, rumored to say that they're looking at possibly going public next year in 2026 and that that valuation would be at about a trillion 5 if they could pull it off. Now when a company goes public at a trillion five, they're not selling a trillion five worth of stock because that would just flood the market. What they really do is sell a small portion of stock, in this case rumored to be about 5% for about 75 billion. That would then lead to evaluation of a trillion five. And that way you sell amount of stock that the market could absorb, but don't really truly flood the market with a trillion 5 in shares. Now to give you a sense of this IPO would be one of the largest IPOs ever. Saudi Aramco was probably a larger IPO, but that's about it. But here at a trillion 5, this compares to SpaceX's current valuation in the latest private funding round of about 800 billion. This would be a trillion five. And again the concept being that they'll be selling 5% of the equity. And this is similar to we recently saw Medline, the medical supply company, registering to go public again at a $55 billion valuation, but really only selling about 5, $5 billion worth of stock. And this is part of the game because you can get your valuation set high, but the market doesn't have to absorb that much stock to make the thing work, actually. So Again, this is SpaceX that we're talking about. Now, when you look at these valuations for a company like SpaceX, there are plenty of critics that think that that valuation is just incredibly out of line. And I'll give you an example of some of the metrics that people talk about. Right now. SpaceX has about 15 to 20 billion dollars in revenues. It's expected in 26 to have about 20 billion dollars in revenues or 24 billion dollars in revenues. And that is a just a small, small number compared to a trillion 5 valuation. So we'll ultimately see how this all plays out. But it's literally fascinating to watch and again, we're watching this closely. Today's title, SpaceX shoots for the Moon. They've said many times very clearly they don't want to go public until they've hit it to Mars on a regular basis. So we say shoot for the moon because it makes more sense to talk about. Here again, we try it at Becker Business, Becker Private Equity to bring you market and business insights every day. Then we try to also make sure that we're, you know, we're bringing you an interview every day. Finally, I'll, I'll end this discussion with the following. If you're the first person to listen to this all the way through and text Scott Becker at 773-766-5322. We will send you a $50 gift certificate, an Amazon gift certificate for being the first person to call. We'll in fact that make that 75. If on top of the 50, you buy our book, pre order our book at Amazon, build great businesses, great momentum, overcome setbacks and scale with confidence. That's available pre order, but you got to pre order the hardcover edition. Thank you for listening to the Becker Business and the Becker Private Equity podcast. Thank you very, very much.