SpaceX IPO Draws More Than $70B in Retail Orders

**SPEAKER_2** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York and Ed Ludlow in San Francisco.

**Caroline Hyde** (0:21)
This is Bloomberg Tech, coming up, SpaceX gears up to finalize its IPO pricing today. This is it offers attracts more than $70 billion in orders from retail investors alone.

**Ed Ludlow** (0:33)
Plus Oracle is under pressure after the company reported higher quarterly capex than expected, raising concerns about the returns on AI.

**Caroline Hyde** (0:42)
And 776 founder and Reddit co-founder Alexis Ohanian joins us live from SuperReturn in Berlin later this hour.

**Ed Ludlow** (0:49)
First, Ed, with us both here in New York, we check in on these markets that we see the bounce back continue to an extent. NASDAQ 100 up 3 tenths percent. We're coming down from earlier highs, but still there seems to be a lot of muscle memory back in the memory perspective. We got semiconductors up 2.4 percent. If you're looking at that SOX index, we are buying back into the hardware, but it's not all pretty out there if you're looking at certain names amid the geopolitical angst as well.

**Caroline Hyde** (1:15)
OK, so the big earnings story is Oracle, right? It's down 12 percent basically, falls the most in six months, and everyone is still worried about how much it costs to get data centers built. It's so funny because out there in the market, in the AI trade, the same anxiety exists on the other side of the table. You can't get it built fast enough.
Give us the compute. We're so compute constrained, but we're going to dig into that a lot more later in the hour. There's still only one story in town.

**Ed Ludlow** (1:40)
There is, and it's why you're in town. It's why we all gathered together in town because we've got the big story of the day of the week of months. SpaceX's IPO is upon us. Almost it feels like we've been building to this crescendo moment for a very long time. Bloomberg's IPO reporter Bailey Lipschel joins us around the desks. Space reporters in town, Lauren Grush, and look, you've been along this ride with us for many a month. Lauren, what does this mean when we're just galvanizing the amount of demand when we're starting to see that retail investments are so extreme and order books are filling up, but this is a space story? What does it mean for your industry?

**Lauren Grush** (2:20)
Well, it has become something more than a space story.
I had my bets on how SpaceX would IPO. I do not think I would have had it IPO in this kind of current form, right? We were told they would never IPO until they had achieved Elon's dream of going to Mars. Now it's this hybrid rocket telecom AI company. But I just think it speaks to the value that SpaceX has provided up until now as a launch provider, as this telecom satellite operator. It's hard to really understate the value that this company has brought to our space program and now also to the telecom business as well. So it's hard to quantify, but I think you're seeing it with these astronomical numbers, if you were, sorry.

**Ed Ludlow** (3:07)
All the puns, way over the top.

**Caroline Hyde** (3:10)
This is out of this world, right? This is also unusual. Bailey, you and I have been banging our heads on our desks because there's a process to it. It's an atypical process that's playing out. But catch the audience up on the mechanics, I guess. What happens likely after market closed today? What happens tomorrow?
Where we think the numbers stand and then we can get to the more intergalactic theme that we want to.

**Bailey Lipschel** (3:34)
We just got to look back a week ago. They came out with a fixed price. Abnormal thing here in the US.

**Caroline Hyde** (3:38)
That doesn't normally happen.

**Bailey Lipschel** (3:39)
No, normally come out with a range. You want to walk Wall Street up to it. You want to start low, then come up size, raise the number of shares, raise the price, baking a big pop. Elon and company over at SpaceX said, we're going to treat this like a private deal. This is the price, this is the size. Are you in or are you out? So that's been playing out for the last week. The bankers closed the formal order books yesterday at around four o'clock. They're all meeting today, deciding who's going to get what. They're eventually going to take that to Brett Johnson and Elon Musk and say, this is what we're thinking.