SpaceX is the Biggest IPO in History & World Cup Wagers Reach $50B

**SPEAKER_1** (0:01)
AI is unchartered territory, and many leaders are trying to navigate through without a guide to help them. That's why Morning Brew created The Intelligence Shift, a new podcast with PwC. It's all about how AI is fundamentally changing different industries. Host Dan Priest is joined by a top tier roster of industry leaders who share real stories and real lessons learned. Get guidance from industry experts. Listen to The Intelligence Shift wherever you get your podcasts.

**Neal Freyman** (0:29)
Good Morning Brew Daily Show. I'm Neal Freyman.

**Toby Howell** (0:32)
And I'm Toby Howell.

**Neal Freyman** (0:33)
Today, SpaceX is going public in the biggest ever IPO. Will it sort of the stars or blow up on the launch pad?

**Toby Howell** (0:39)
Then gambling companies are expecting 100,000 bets per minute on this year's World Cup. It's Friday, June 12th. Let's ride.

**Neal Freyman** (0:57)
Let's say I pluck you up like a ladybug and drop you in a house or a museum or a supermarket or any other enclosed space and told you to start walking around. Which direction do you think you'd go first? Well, a new study found that almost always, you'll start walking left first. Researchers in Spain have concluded that humanity has a baffling unexplained tendency for counterclockwise motion. Doesn't matter where you're from, your background, how old you are, whether you're right hand dominant or right eye dominant, people just have this innate left turn bias, which is surprising given our most famous strutter, Derek Zulander, said he was not an ambiturner and ever since he was a baby, he couldn't turn left. Toby, what is going on? Why are we, besides Zulander, seemingly programmed to go counterclockwise?

**Toby Howell** (1:44)
Nobody knows. No, but seriously, the researchers did not come to a conclusion and specifically said it's not caused by cultural norms because it happened identically in Spain, it happened identically in Japan. So that means to me, it must be biological. So here's one idea I have and take it with a massive grain of salt. Your liver is a very heavy organ situated on the right side of your toe. So while your heart leans a little bit to the left, so we have uneven internal weight distribution that puts our center of math slightly to the right. So my theory is to naturally compensate for carrying that extra weight. Your biomechanics might steer you ever so slightly to the left over long distances. Makes sense to me.

**Neal Freyman** (2:26)
I don't know enough to either do I. But it's true that the researchers like, yeah, we literally have no idea why this is happening. We know that tracks go counterclockwise. A number of things in our lives go counterclockwise. But still, it's completely unexplained.
Maybe your liver explanation has a little legs to it.

**Toby Howell** (2:43)
I feel like it's true. Also, I just Googled good explanations for this and that's what it came up with. So again, take it with a grain of salt.

**Neal Freyman** (2:49)
Mine was the grocery store explanation. Like when you go into a grocery store, usually my perception of it, the produce is to the left and this is just where the grocery store wants you to go. But I don't know if that is a symptom or a cause of our counterclockwise motion.

**Toby Howell** (3:02)
I mean, if it's biological from the moment humans existed, then we didn't have grocery stores at that time. And I feel like that's too like social and cultural for it to be the real explanation. But if you guys have any ideas, clearly we're grasping at straws here. So send us your thoughts as well.

**Neal Freyman** (3:17)
And so are the people that did this study. Okay, now a word from our sponsor, Sage. Toby, ever teach yourself how to do something with a video?

**Toby Howell** (3:25)
Yes, how to raise a cactus.

**Neal Freyman** (3:26)
How'd that go?

**Toby Howell** (3:27)
I miss him every day.

**Neal Freyman** (3:28)
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**Toby Howell** (3:38)
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**Neal Freyman** (3:54)
Just head to sage.com/morningbrew to learn more. That's sage.com/morningbrew.

**Toby Howell** (4:00)
The most anticipated IPO in market history is here. SpaceX will begin trading today in a public offering that will impact space, AI, Wall Street, and whether another comma is added to Elon Musk's net worth. The valuation is set to be huge. The company is targeting a $1.8 trillion market cap, which would raise over $75 billion, more than two times larger than any IPO in history. SpaceX, despite its name, has evolved into much more than a rocket company. Elon Musk has pitched it as an AI leader, a data center builder, a communications giant, and of course, a Mars colonization company. Its revenue is roughly $19 billion, which, while not small, means traders are giving Musk's empire a valuation that is nearly 100 times its sales. To put that in perspective, the average price of sales multiple of NASDAQ 100 companies is about 6.8x. Apple trades at 10x its sales. Neither the lofty valuation nor the fact that SpaceX lost over $4 billion in the last quarter is scaring Elon Musk fanboys and girls away, though. Bloomberg spoke to a 33-year-old PR manager who tried to borrow $5,000 from a bank to go along with the $6,500 she already had saved away to buy shares in the debut. An unusually large 20% of the shares were reserved for retail traders who placed $100 billion worth of buy orders, meaning that everyday people will have a lot of sway over how the stock performs on its first day. But let's just zoom out once again about how big this thing is. It's bigger than Tesla, Meta and Berkshire Hathaway. If it does trade at $1.8 trillion, it would equal the combined value of the 29 largest US IPO since 2000 adjusted for inflation. Neal, have I hyped this up enough? I can keep going.