SpaceX Is Said to Target $75 Billion in IPO at $135 Per Share

Summary

---

Bloomberg Intelligence Podcast

Episode: SpaceX Is Said to Target $75 Billion in IPO at $135 Per Share
Date: June 3, 2026
Hosts: Paul Sweeney, Scarlet Fu
Featured Guests: George Ferguson (Senior Aerospace Analyst, Bloomberg Intelligence), Gautam Wakanda (Lecturer, Yale School of Management; Bloomberg Opinion Contributor), Matt Hendrickson (Senior Equity Analyst, Bloomberg Intelligence), Mary Ross Gilbert (Senior Retail Analyst, Bloomberg Intelligence)

---

Overview

This episode centers on SpaceX’s hotly-anticipated IPO, which seeks to raise $75 billion at $135 per share. The hosts and expert guests explore the deal’s significance, SpaceX’s business model, and questions around its corporate governance—highlighting the unique position of Elon Musk in the company. Secondary segments briefly turn to Medtronic’s solid results and Macy’s strategy in a changing retail landscape.

---

SpaceX IPO: Size, Pricing, and Unconventional Process

(01:55 – 15:42)

Key Points

• IPO Roadshow & Pricing

  • SpaceX is set to begin its IPO roadshow imminently and is already targeting a fixed price, not a range, which is atypical for large IPOs.
    • “This IPO is kind of progressing unusually... It's so mammoth and they, you know, the company can kind of call the shots on everything.” (Host 3, 02:03)
    • Shares priced at $135; if successful, Elon Musk's net worth approaches $1 trillion.
  • Host notes that investors have limited research material: "There’s no research from Wall Street except for Bloomberg Intelligence." (Host 2, 02:24)

• Business Fundamentals and Long-Term Value Proposition

  • The IPO is fundamentally a bet on the future of AI and space-based data centers, with Starlink playing a role in global communications but with higher value as a platform for space-based AI.
    • “I think the big, big, big sort of opportunity here would be if data centers are going to work in space and AI is a big thing in the world… you're betting on that in the long run if you're buying into the SpaceX IPO.” (George Ferguson, 03:18)

• Valuation and Peer Comparison

  • Valuing SpaceX involves ‘sum-of-the-parts’ analysis referencing Rocket Lab for launch, Starlink for constellation comms, and tech peers for AI—the biggest value surprisingly comes from the rocket business.
    • “The biggest value that actually came out of... the rocket business, which is a little bit surprising to me. But I still think sort of the long-term play here is the data center in space and AI.” (George Ferguson, 04:28)

Notable Quotes

• “If it gets that, Elon Musk’s net worth would be just shy of $1 trillion. It’d put him at $988 billion.” (Host 3, 02:10)
• “It’s all about AI in the future and the optimal way to deliver it.” (George Ferguson, 03:18)

---

Intracompany Relationships: Tesla, Starlink, and SpaceX

(05:21 – 07:12)

Key Points

• Potential for Elon Musk Rolling Holdings Together

  • Discussion on whether Musk could consolidate Tesla into SpaceX; Ferguson doesn’t see an operational fit, but notes financing needs might drive unexpected business structures.
    • “I see how all three [launch, Starlink, AI/data centers] fit together. I don’t see how Tesla fits inside that mold.” (George Ferguson, 05:37)
  • "So look, I think Elon could do, you could see him do things for financing reasons that may not make sense from… a company-level reason." (George Ferguson, 06:25)

• Public Market Financing

  • Going public opens up new equity and possibly speculative debt options, with core fundraising shifting from VC to the open market.
    • "It still feels like largely an equity fundraising kind of story to me." (George Ferguson, 07:12)

---

SpaceX Governance: Unprecedented Control for Musk

(10:58 – 15:42)

Key Points

• Governance Structure

  • SpaceX’s IPO paperwork grants Musk sweeping control and special voting powers, surpassing even Facebook and Google’s dual-class precedents.
    • “The phrase I used in the column was he’s now the God king of SpaceX. Like, he can never be fired.” (Gautam Wakanda, 11:51)
    • “No shareholder has any ability to put a break on him.” (Gautam Wakanda, 11:53)

• Risks for Index Investors

  • Concerns arise for passive/index investors who will be forced buyers, lacking recourse against possible insider favoritism.
    • “All of these institutions… have fallen down on the job and decided that they’re not going to do that… they’re not going to protect [passive investors].” (Gautam Wakanda, 12:38)
  • Even believers in Musk should worry—no one’s ideas go unchallenged: “There’s no such thing as a person who is so brilliant they don’t get better when other people test and push their ideas.” (Gautam Wakanda, 13:31)

• Dual-Class Shares in Tech Industry

  • While multi-class share structures are now common, SpaceX’s degree of control is called unprecedented:
    • “The dose makes the poison. A lot of companies did this… but we have now taken this to the point where the solution… looks to be much worse than the problem.” (Gautam Wakanda, 14:13)

• Capital Markets Integrity

  • Wakanda warns the structure undercuts fairness and American capital market integrity:
    • “This is structured as a transfer of wealth from investors to early-stage SpaceX holders. That’s wrong and it is really a frontal assault on one of the pillars of American capitalism.” (Gautam Wakanda, 15:01)

---

Additional Segments

Medtronic: Post-Earnings Pulse

(18:28 – 24:10)

• Recent Earnings & Growth Drivers
  • Medtronic’s 124% segment growth staves off worries about slowing procedures, despite competitive threats. The company’s guidance looks optimistic for Fiscal 2027, but analysts still question execution reliability.
    • “It’s always been an execution story for Medtronic... for whatever reason the sales team or just the execution wasn’t there. So they would always have to revise something after the third quarter.” (Matt Hendrickson, 23:05)
• Market & Policy Influence
  • GLP (glucagon-like peptide) drugs and changing medical landscape are ongoing unknowns; Medtronic’s diversification helps shield it relative to pharma peers.
• Acquisition Strategy
  • Medtech firms now target upstart private companies earlier in their development cycle for acquisition-driven innovation.

---

Macy’s: Premium Positioning in a Shifting Retail Landscape

(26:45 – 31:56)

• Quarterly Performance
  • Macy’s comps up 3%, Bloomingdale’s up 10%. Major “upscale” brand activations (Chanel, Louboutin, Prada) to drive sales and in-store experience.
    • “What you’re hearing from Macy’s… is that they’re executing. Their comps were up 3%. We had very strong gains from Bloomingdale’s being up 10%.” (Mary Ross Gilbert, 27:02)
• Market Share Post-Saks Bankruptcy
  • Bloomingdale’s wins customers previously loyal to faltering competitors like Saks/Neiman Marcus.
    • “Bloomingdale’s was really elevating their execution, they're taking share... even if we look at the transaction data, we can see that sales are still down double digits at the consolidated Neiman Marcus Group, the Saks Global.” (Mary Ross Gilbert, 29:03)
• Premiumization & Segment Diversification
  • Macy’s pushes “good, better, best” strategy—raising the mix of luxury brands while maintaining entry points for mid/lower-income customers.

---

Notable Quotes & Moments

• On SpaceX’s Unorthodox Control Structure:
  “He’s now the God king of SpaceX. Like, he can never be fired. He has total control. No one in the organization has any ability to put a break on him.”
  – Gautam Wakanda, 11:51

• On Valuing SpaceX:
  “The biggest value that actually came out of Rocket Lab, sorry, came out of the rocket business, which is a little bit surprising to me. But I still think the long term play here is the data center in space and AI.”
  – George Ferguson, 04:28

• On Potential Risk for Index Investors:
  “This is structured as a transfer of wealth from investors to early stage SpaceX holders. That’s wrong and it is really a frontal assault on one of the pillars of American capitalism that has made it so successful.”
  – Gautam Wakanda, 15:01

---

Timestamps for Key Segments

• SpaceX IPO Announcement & Mechanics: 01:55–03:18
• Space/AI/Starlink Vision: 03:18–05:21
• Tesla Consolidation & Business Model Discussion: 05:21–07:12
• SpaceX Governance & Musk’s Control: 10:58–15:42
• Medtronic’s Earnings & Outlook: 18:28–24:10
• Macy’s Post-Saks Strategy: 26:45–31:56

---

Tone and Style

The hosts skillfully blend Wall Street rigor with engaging, plain-spoken analysis, balancing technical insights with memorable, candid phrases—reflecting Bloomberg Intelligence’s trademark depth and accessibility.

---

Ideal for: Investors eyeing SpaceX, those concerned with corporate governance, followers of big IPOs, and anyone tracking retail/Medtech trends.

---

Transcript

[Host 1]

At Brookfield, you can own wealth that's measured in generations for 125 years. We've built long term wealth through expertise, discipline and a clear vision for the future, providing investors access to alternative strategies Built for what's Next Brookfield Own what's Next learn [e-mail] this is not an offer to sell or investment advice. Investing involves risks, including loss of capital.

[Host 2]

Never bet against American Grit or American Energy through innovation.

[George Ferguson]

Venture Global is not only building some

[Host 1]

of the largest energy facilities in the

[Host 2]

world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's unstoppable energy.

[Host 3]

Small businesses are the pulse of every community. They bring people together, create opportunities and drive growth. Chase for Business helps business owners like you with personalized guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn [e-mail] business chase for business Make More of what's yours the Chase Mobile app is available for select mobile devices. Message and data rates may apply JP Morgan Chase Bank Naomi Member FDIC Copyright 2026 JPMorgan Chase Co.

[Podcast Announcer]

Bloomberg Audio Studios Podcasts Radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Host 2]

I think the schedule is for the Space X IPO roadshow to start tomorrow. I haven't seen a schedule, but that's what I'm hearing.

[Host 3]

Yeah, but this IPO is kind of progressing unusually.

[Host 2]

Yes.

[Host 3]

It's so mammoth and they, you know, the company can kind of call the shots on everything. And our reporting shows that Space X is offering shares at $135 each. If it gets that, Elon Musk's net worth would be just shy of $1 trillion. It put him at $988 billion.

[Host 2]

All right, here's the problem. If you're an investor, you're looking at this ipo. You don any research. There's no research from Wall street except for Bloomberg Intelligence. George Ferguson joins us here. He's a senior aerospace analyst at Bloomberg Intelligence. He's got a monster primer research report on Space X. So if you have access to the Bloomberg terminal, you can find it there under the Aerospace dashboard by go and it tells you everything. You need to know about this company and how it stacks up relative to the cops and kind of the market opportunities and all that kind of stuff. That's the research. And you won't get street research for a while. So this is it on global Wall Street. George joins us now. George, what do you think the message is going to be from Elon Co. Regarding this company? Because boy, the, it is an expansive company with an expansive vision. What do you think the message is going to be?

[George Ferguson]

Yeah, look, I think it's all about AI in the future and the optimal way to deliver it. Right. And so I think the space business, the lift business, really supporting that satellite constellation Starlink, which is all about communications between the Earth's surface and low Earth orbit. I think that's interesting, but it's not, I think, a huge value proposition. Right. You're trying to, you'll be competing with terrestrial providers that I think can do much better in populated centers. So I think the big, big, big sort of opportunity here would be if data centers are going to work in space and AI is a big thing in the world, you're going to be able to, from the surface of the Earth, shoot your data requests into space and data centers in space will work out all those things you need to know via air and get it back to you. I think you're betting on that in the long run. If, if you're buying into this, into the Space X ipl.

[Host 3]

George, we talk about how your title is the aerospace, defense and airlines analysts. What kind of company is Space X now? What is its, what is the comparable company? What group should be considered a peer to.

[George Ferguson]

Yeah, So I mean when we, we built our valuation and thought about what was potentially, you know, plausible given current markets, we really had to do with some of the parts. Right. So I went out and looked at the rocket business against those peers like Rocket Lab, my colleagues, John Butler went out and looked at Starlink based on some peers as well. And then Mandeep Singh did it based on AI. The biggest value that actually came out of Rocket Lab, sorry, came out of the rocket business, which is a little bit surprising to me. But I still think sort of the long term play here is the data center in space and AI. But we had to combine again, analysis in all those industries to really come up with what we thought maybe a plausible valuation, albeit extremely lofty valuation would be.

[Host 2]

Is there an expectation, George, that Elon may look to just kind of consolidate all of his holdings within Space X, that is roll up Tesla into Space X? Is that something that when you talk to investors that they think is possible? Likely.

[George Ferguson]

I hear noise like that. I mean, look, I think, you know, when I look at the current Space X, I see, I see the reason to put these three companies together again. Sort of the launch business gets your satellite constellations up in the air. He's got the largest satellite constellation. Starlink by far is the largest of any satellite constellation, low earth orbit. So the launch business gets those satellites up there, it serves Starlink and then, and then again as AI comes in, if you're going to put the data centers in space, you've got to drive down the cost of drive of getting things into orbit. And again, your launch business matters and you know, obviously the communications to get to it. So I see how all three of those fit together. I don't see how Tesla fits inside that mold. Now look, I think these, all three of these are together because I needs a fair amount of financing. Right now we're seeing that all around the marketplace, right. Companies are looking to raise funds to build data centers, build out their models, make sure they're super competitive. So, so look, I think Elon could do, you could see him do things for financing reasons that may not make sense from, you know, a company level reason. Okay, right now I see the reason these three are together because they seem to be supporting each other.

[Host 3]

So George, when Space X is a publicly traded company listed on the NASDAQ under the ticker SPC and it needs more money to fund its AI build out, how is it going to get that money? Is it going to sell more stock? Is it going to go to the debt market? What are you thinking?

[George Ferguson]

Well, I mean right now they're not selling all, all the stock. You know, they're not, they're not listing sort of the full value of this company on the exchanges. But, but so my sense is they probably could sell more stock to raise money. And then I think it just, you know, it opens up the ability to go into public markets and take public debt and sort of, I guess maybe get out of the venture capital world a little bit. But look, I mean, I guess we'll see. It still seems like a really hard, it's not a company that you're going to bank, right? The major banks of the world are going to, are going to show up and say we like the finance here. The metrics just aren't there for that. Some very speculative bond investors could potentially get involved. It still feels like largely and you know, an equity fundraising kind of story to me.

[Host 3]

Stay with us. More from Bloomberg Intelligence coming up after this.

[Host 1]

At Brookfield, we invest in the thing behind the thing, behind the Next Big thing. Our focus across infrastructure, energy, real estate, private equity and credit is helping build the backbone of the global economy. We combine deep operational expertise with disciplined long term investing, uncovering value and partnering alongside clients to shape tomorrow's economy. Today. Brookfield Own what's next? Learn [e-mail] this is not an offer to sell or investment advice. Investing involves risks, including loss of capital.

[Host 2]

Support for the show comes from public. Lately it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades, and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth on public you can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts? Yep. High yield cash? Yes again. They even have direct indexing. Public has modern design, powerful tools and customer support that actually helps go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by Public Holdings Brokerage Services by Public Investing Member Finra SIPC Advisory Services by Public Advisors SEC Registered Advisor crypto services by ZeroHash all investing involves risk of loss. See complete [e-mail] disclosures running a small

[Host 3]

business takes everything you've got, but with Chase for Business, you're not alone. They bring together local support and a broad range of resources to more than 7 million customers with a deep understanding of your day to day needs. They provide products and guidance built to help you thrive right now. Earn $500 when you open a new Chase Business Complete Checking account for New Business Checking customers with qualifying Activities offer. Expires June 18, 2026 Chase Business Complete Checking has the flexible tools you need to accept payments, make deposits and manage your finances with confidence. Learn [e-mail] podcast bizoffer chase make More of what's yours Fees may apply to Chase Business Complete checking accounts. The $500 offer is available for new business checking accounts with qualifying activities through June 18, 2026. Eligibility and qualification requirements must be met. Additional restrictions may apply. Please speak with a business banker for more information. JPMorgan Chase Bank NA member FDIC

[Podcast Announcer]

you're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Host 3]

We continue to look for details on this gigantic IPO coming out from Space X. The latest reporting indicates that the company plans to shares at $135 apiece. It wants to raise $75 billion in its IPO. And you know, the fact that it's kind of pinpointed a price already makes it different than your typical IPO, where companies announce a price range as they get ready to market the shares during these investor roadshows. Let's bring in Gautam Wakanda. He is a lecturer at the Yale School of Management. He's also a contributor to Bloomberg Opinion, and he's written about governance at Space X or perhaps lack of governance at Space X. And Gautam, I want to start with this idea that SpaceX's IPO is shaping up to be kind of a departure from the norm. And you say that that's the case with its governance as well. What have you spotted in the paperwork that is filed that really shows it's defying convention?

[Host 1]

They basically surrounded Elon Musk with rights and privileges and special voting shares and rules and things like that that make him. You know, the phrase I used in the column was he's now the God king of SpaceX. Like, he can never be fired. He has total control. No one in the organization has any ability to put a break on him. No shareholder has any ability to put a break on him. A lot of CEOs have been doing a lot to concentrate power in their own hands, but I don't think I've ever seen anything quite like this.

[Host 2]

Gotham. It kind of makes sense. My guess, if I were an investor taking a meeting here for this ipo, all I want to hear is from Elon Musk and what his vision is and how he thinks he can get there and achieve profitability. I don't care what the CFO says. I don't care what anybody else says. I just need to dial in on Elon because it's a bet on Elon. Maybe that's not reflected in the governance.

[Host 1]

No, I think that's right. And look, if you were are a major institutional investor and you decide to go in on SpaceX, you do it because you are bought in on the story of Elon Musk and you might have lots of reasons to buy in on that, you might have made a lot of money on him. There are two problems with that logic and it's important to have to highlight both of them. The first one is a lot of the people who are investing in SpaceX are not people who are buying into the story of Elon Musk. They're index fund people who hold index funds. People in their 401ks who are just going in because it's in the index. And because all of these institutions from, you know, including Nasdaq that are supposed to put boundaries and guardrails and protect investors like that, investors who, because they're in index funds, literally cannot protect themselves. All of them have fallen down on the job and decided that they're not going to do that. So that's the first problem. But the second problem is just as important, which is, however brilliant you think Elon Musk is, even if you think he is the greatest business person who's ever lived, there's no such thing as a person who is so brilliant they don't get better when other people test and push their ideas. And this is a structure that's designed to make sure that no one has the ability to force Elon Musk to be the best version of himself and not the worst one.

[Host 3]

Well, I mean, SpaceX is not unusual in that it's giving itself, you know, leader of free hand. You point this out that Google's 2004 IPO kind of codified this dual class shares into the tech industry, met up or then Facebook did something similar. So in that way, this is a tried and true formula for big tech companies.

[Host 1]

Yes and no. There's a great phrase in medicine that's worth remembering here. The dose makes the poison. A lot of companies did this. They created these dual class structures. They did a lot of things because the financial markets and sort of pressure from Wall street had made it impossible for them to manage companies for the long term. They realized that that was toxic. They looked say at Boeing and said, we don't want to be Boeing, we don't want to be ge. We want to be a company that actually creates value over the long term. And so they created these structures to allow that to happen. That was the problem. We have now taken this to the point where the solution looks, in a very great sense to be much worse than the problem.

[Host 2]

So 30 seconds left. Gautam, the index issue, how serious is that for investors, do you think?

[Host 1]

I think it's an assault. So this particular stock, it is not devastating, although it's not good. What it was very serious for investors is it is an assault on the integrity of the capital markets. The guarantee that you will be treated fairly, that this is not just a way for insiders to extract money from index investors and from people who are not as sophisticated as they are right now. This is structured as a transfer of wealth from investors to early stage SpaceX holders. That's wrong and it is really a frontal assault on one of the pillars of American capitalism that has made it so successful.

[Host 3]

Stay with us. More from Bloomberg Intelligence coming up after this.

[Host 2]

Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds and crypto, and they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R and D spend, small cap stocks with improving operating margins, or the S&P 500 minus high debt companies. Chances are there isn't an ETF that fits your exact criteria. But on Public you just type in a prompt and their AI screens thousands of stocks and builds a one of a kind index. You can even backtest it against the S&P 500. Then you can invest in a few clicks, go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by Public Holdings Brokerage Services by Public Investing member finra SIPC Advisory Services by Public Advisors SEC Registered Advisor crypto services by ZeroHash sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete [e-mail] Disclosures Game Night Rush or any night of the week really Genius keeps every order moving from online ordering to your kitchen to the front counter. Big league reliability for any business, that's genius.

[Host 3]

Running a small business takes everything you've got. But with Chase for Business, you're not alone. They bring together local support and a broad range of resources to more than 7 million customers with a deep understanding of your day to day needs. They provide products and guidance built to help you thrive. Right now earn $500 when you open a new Chase Business Complete Checking account for new business Checking customers with Qualifying Activities offer expires June 18, 2026. Chase business complete Checking has the flexible tools you need to accept payments, make deposits and manage your finances with confidence. Learn [e-mail] PodcastBizOffer Chase make more of what's Yours Fees may apply to Chase Business Complete checking accounts. The $500 offer is available for new business checking accounts with qualifying activities through June 18, 2026. Eligibility and qualification Requirements must be met. Additional restrictions may apply. Please speak with a business banker for more information. JPMorgan Chase Bank NA member FDIC

[Podcast Announcer]

you're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on demand, wherever you get your podcasts or watch us live on YouTube.

[Host 2]

Let me take you all the way back to the summer of 1991. I was in the Chase Manhattan bank summer credit training program and we were assigned a company to do a full credit report on and do a presentation. That company for me was Medtronic, medical device maker. So I followed the company kind of ever since because when you put in a ton of work on a company, it tends to stick in your brain. Other folks cover the stock as well. They reported some numbers. I thought they looked pretty decent to me. The stock is up 5% today, but it's down about 19% year to date. This is one of the leading medical device makers out there. So let's pay attention to what's happening there. Matt Hendrickson does. He's a senior equity analyst at Bloomberg Intelligence, joining us live here in our studio here. Matt, talk to us about Medtronic. What did you hear from them in their earnings release?

[Matt Hendrickson]

Yeah, I mean, so going in ahead of the call, the question was for one of their key technologies, whether it was a market slowdown or a competitive dynamic. The previous company reporting, Boston Scientific, talked about slowdown turned into what was going to happen when Medtronic reported, they reported very positive 124% growth in this one segment eased a lot of concern ahead of the call. That's why you're seeing the bump this morning.

[Host 3]

Right.

[Matt Hendrickson]

And so turning into their fiscal 2027 guidance shows signs of upside in the future. Because of that momentum in that segment,

[Host 2]

a medical device maker like Medtronic, how much, how much are they impacted by healthcare policy out there? It seems like it's such a you guys have to figure out what the earnings are going to be and all that kind of stuff. But you also have to have an opinion on kind of how policy is going to unveil over the next several years.

[Matt Hendrickson]

It's tough. It's always a labyrinth. It's a black box. What's going on in CMS and the FDA. MedTech is a little bit less impacted by it. You're going to have procedure volumes, you have the aging demographic. They're going to have knee procedures done, they're going to have heart surgery done, things like that. Recently, it's more been the GLPs. And so I remember two, three years ago when GLPs first came out, everyone thought Medtech was dead. They were able to maintain procedure volumes. Now with the rise of oral GLPs, that is kind of coming back.

[Host 2]

So what's the thinking there? What's the thesis?

[Matt Hendrickson]

Basically, it's easier to take a GLP orally as a pill versus injecting it.

[Host 2]

So therefore I'll need fewer knee replacement.

[Matt Hendrickson]

There's, there's, there's data out there that's showing that it aids with cardiovascular cases, things like, you know, healthier knees, things like that. So less procedures there. What we saw in 2024, 2025 is that cases were steady throughout the whole and if not growing.

[Host 2]

Interesting.

[Matt Hendrickson]

But once again we're getting into that new case of uncertainty going on.

[Host 2]

I was talking to a buddy of mine, he's at the doctor that fixes knees and ankles and stuff like that. He says pickleball has been a boon to his business. His office is packed with people my age coming in with torn up knees and ankles because they were playing pickleball.

[Matt Hendrickson]

You're not the first one to say that because I mean, think about it. They're just so, they're so eager to get out there and they forget that they're in their 60s and 70s and next thing you know, crack and then got to get to the surgeon.

[Host 2]

So who does Medtronic compete against in their business? So?

[Matt Hendrickson]

Well, Medtronic is very diversified and so we can talk about the cardiovascular space, the spine space, neuroscience for particular, this case, pulse field ablation, which was not there in 1991. It's a new technology for cardiac ablation. The two main competitors is Boston Scientific and Medtronic. And it turned into that question when Boston reported growth numbers that were lower than expected. What was going to happen to Medtronic? And so today was a kind of cleared that hurdle at least.

[Host 2]

Do these medical device companies like Medtronic, are they aggressive on the acquisition front? Is that a growth driver for them? Because I always joke with Sam Fazelli his pharma companies, every Monday morning we wake up, there's another pharma deal.

[Matt Hendrickson]

It's a huge way for them to drive that innovation. Basically they acquire the innovation to be able to maintain their revenue growth trajectory in the future. So it's huge. The difference that we're starting to see in MedTech side versus the pharma side is that they're targeting the private companies earlier in their series financing before they become publicly traded. While Sam was probably talking about a lot of the publicly traded companies that have been acquired over the last few months.

[Host 2]

So what's the call on Medtronic here? I'm just looking at the ANR function on the Bloomberg terminal. It's kind of streets kind of split here. I got 17 buys but 14 holds here. So what's kind of the. Is there something the street's looking for to say, okay, I can jump on board here?

[Matt Hendrickson]

I think people are waiting for. It's always been an execution story for Medtronic and it's always been kind of Lucy pulling the football from you and they would have one or two great quarters. They always talked about the great innovation and the innovation always has been promising for, you know, whether it's Pulse field ablation, there's a few other ones that we can go into the nitty gritties of at another time. But all this technology that is disrupting the standard of care. But for whatever reason the sales team or just the execution wasn't there. So they would always have to revise something after the third quarter and then things would then retrace from those kind of momentum that they had earlier. It's kind of. So basically there is that little bit of I don't want. There's some that I don't want to try to kick the football for Lucy just to pull it from me.

[Host 2]

Yep.

[Matt Hendrickson]

And so they've had a bunch of good quarters. It's going into they issued fiscal 2027 guidance that's showing that momentum from fiscal 2026. A lot of it has to do with the Pulse field ablation segment of their business that's showing some strong momentum. So we'll see what happens come August with the fiscal first quarter calls coming out.

[Host 3]

Stay with us. More from Bloomberg Intelligence coming up after this.

[Host 2]

Support for the show comes from Public. Lately it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades and others feel less like investing and more like a game. Public is positioned differently. It's an investing platform for people who are serious about building their wealth on public. You can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts. Yep. High yield cash. Yes, again, they even have direct indexing. Public has modern design, powerful tools and customer support that actually helps go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.commarket add paid for by Public Holdings Brokerage Services by Public Investing Member FINRA SIPC Advisory Services By Public Advisors SEC Registered Advisor Crypto Services By 0/ all investing involves risk of loss. See complete disclosures at public.com disclosures this

[Host 3]

dog salon operational excellence thanks to genius from global payments Scheduling Personalized Checkouts Instant Absolutely Genius Big League Reliability for any business. That's genius. Running a small business takes everything you've got. But with Chase for Business, you're not alone. They bring together local support and a broad range of resources to more than 7 million customers with a deep understanding of your day to day needs. They provide products and guidance built to help you thrive right now earn $500 when you open a new Chase Business Complete Checking Account for new Business Checking customers with qualifying activities. Offer Expires June 18, 2026 Chase Business Complete Checking has the flexible tools you need to accept payments, make deposits and manage your finances with confidence. Learn [e-mail] PodcastBizOffer Chase make more of what's Yours Fees may apply to Chase Business Complete checking accounts. The $500 offer is available for new business checking accounts with qualifying activities through June 18, 2026. Eligibility and qualification requirements must be met. Additional restrictions may apply. Please speak with a business banker for more information. JPMorgan Chase Bank NA member FDIC

[Podcast Announcer]

you're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Host 2]

In terms of earnings, Macy's reported some pretty good numbers. The stocks trading up here today, one and a half percent. Let's break it down with Mary Ross Gilbert. She covers the retailers for Bloomberg Intelligence. She's based out there in Los Angeles. So Mary, what do we hear from Macy's?

[Mary Ross Gilbert]

Well, what you're hearing from Macy's, Paul, is that they're executing. That's what you're hearing. So what we saw in the quarter, their comps were up 3%. We had very strong gains from Bloomingdale's being up 10%. And what the company is doing is they're bringing in a lot more relevant brands. First of all, they had already been executing at Bloomingdale's, but they're even taking it to a next level. So I think I mentioned before last quarter how they brought in our local store here in Westfield Century City. They brought in a Chanel shoe boutique that was brought in over a year ago. And then just this year they brought in Christian Louboutin. Well, in New York city in the 59th street location, they have a Prada shoe boutique. So what they're doing is just continuing to elevate. This is also happening on the Macy's side side too, where they're really climbing up in terms of the brands that they're bringing in. So some of the brands that they mentioned include Mango is one of them. They're also doing a whole activation for World cup with Nike, Adidas and also Puma. So very exciting things that the company is doing. And if you look online at their website, it has completed completely changed. It's a lot more engaging, it's a lot more exciting. So they're really. And there's more to come, right? So even with the nice gain that we saw this quarter, I think we're going to continue to see that momentum build.

[Host 3]

And just a heads up to everyone that Macy's CEO Tony Spring One will be on Bloomberg Television today live at 4:30pm Speaking with Romaine Bostick so we can get more detail from the CEO. And I bring that up because I feel like Macy's, the company, Bloomingdale's in particular, was definitely a winner here following the bankruptcy filing of Saks Global Enterprises, the parent company of Saks Fifth Avenue, which has had to shut down a lot of stores. Is that the case?

[Mary Ross Gilbert]

It absolutely is the case, Scarlett. We've been noticing this and it actually really started last year and we saw this sharp acceleration in Bloomingdale sales ahead of the bankruptcy, actually because of the misexecution that was going on when they acquired Neiman Marcus. And Neiman Marcus, which had been showing positive sales trend, turned sharply negative following that acquisition. So you can see that the consolidated chain, they weren't paying vendors, they weren't treating their customers well, not accepting returns. They couldn't get a lot of these customers who were frustrated, couldn't get in touch with anyone. So meanwhile, while Bloomingdale's was really elevating their execution, they're taking share, essentially. And so I think we're continuing to see that because even if we look at the transaction data, we can see that the sales are still down double digits at the consolidated Neiman Marcus Group, the Saks Global.

[Host 2]

When you talk to your retailers, are they trying to go up, just generally more upscale? I'm thinking about this case K shaped economy and the parts of the case seem to be getting more and more pronounced. So if you're a Macy's, maybe on the margin I go a little higher end. I bring some brands in that maybe I wouldn't have had in the past. Are you hearing that?

[Mary Ross Gilbert]

We're absolutely hearing that to a certain extent, though, Paul, you raise a valid question. It's also important that you have those entry brands and you saw this with Kohl's, that's really where their focus is because their consumer is really that lower income. That's our core consumer. Macy's will say our core consumer is really middle income to upper income. And so they have to make sure they have, you know, sort of those entry levels. So they it's called really the good, better and best classifications. But yes, they're really pushing their merchants to focus on going up the best chain because they're finding that having newness will drive conversion. So bringing in new, fresh, exciting brands and classifications are really driving that incremental sales gain. And their average price was up 8.3%. So you had at the Bloomingdale side it was up about 9 to 10%. But Macy's, the nameplate, was up mid single digits. And where they saw strength in beauty, once again driven by a lot of newness across skincare and fragrance driving those gains there. So that really does make a difference. But it is important to have that good, better and best classifications not just in private labels. So they're bringing in some of these entry levels brands you know, or extending those like a Sam Edelman, for example.

[Podcast Announcer]

This is the Bloomberg Intelligence podcast, available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon Eastern on Bloomberg.com, the iHeartRadio app, TuneIn and the Bloomberg Business app. You can also watch us live Every weekday on YouTube and always on the the Bloomberg terminal.

[Host 3]

As industries evolve faster than ever, companies need an environment that accelerates strategic growth. And Michigan delivers on that promise. From emerging startups to global enterprises, Michigan offers what executives value most. A resilient, innovative ecosystem, diverse communities that attract top talent, and a quality of life that supports work life Balance with our unit With a unified team Michigan approach, businesses scale faster and compete at the highest level. Michigan Pure Opportunity Seize your [e-mail] when

[Host 2]

you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering and claims experience. Learn [e-mail] riskmitigation policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut Ryan Reynolds here from Mint Mobile with a message for everyone Paying Big Wireless Way too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month, of course, if you enjoy overpaying. No judgments.

[Matt Hendrickson]

But that's weird.

[Host 2]

Okay, one judgment anyway. Give it a [e-mail] Switch upfront payment

[Host 3]

of $45 for three month plan equivalent to $15 per month required intro rate first three months only, then full price plan options available, taxes and fees extra. See full [e-mail].