SpaceX Rallies For Third Straight Day, Becoming World's Fifth Largest Stock

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.
This is Bloomberg Businessweek Daily, reporting from the magazine that helps global leaders stay ahead, with insight on the people, companies, and trends shaping today's complex economy. Plus, global business, finance, and tech news as it happens. The Bloomberg Businessweek Daily podcast, with Carol Massar and Tim Stenovec on Bloomberg Radio.

**Tim Stenovec** (0:32)
Bailey Lipschultz is Bloomberg News IPO reporter. I think a lot of people who have been tuning in over the last week might think he lives in midtown Manhattan at Bloomberg headquarters. But no, he's actually joining us from New Jersey today. He did get out of the office, which I'm glad he did.

**Carol Massar** (0:47)
It looks like he's in the office.

**Tim Stenovec** (0:48)
It does. That's the magic of television.

**Bailey Lipschultz** (0:51)
The magic of the green screen. I don't know actually how to turn off the Zoom filter, so it's clear. Any meeting I have, people were like, are you in an elevator? Are you Bloomberg? I'm like, no, I'm doing something else.

**Tim Stenovec** (1:02)
Well, no matter where you are, Bailey, we're glad you're with us. Sorry, go ahead on this valuation question because I'm beating this drum a lot.
But I'm wondering who's buying shares in this company right now.

**Bailey Lipschultz** (1:14)
Well, we're seeing a mix of things. Today was the first day for call options, well, put options, but options writ large to be able to be purchased.
Similar to what we saw with GameStop, to an extent, if people are buying and rushing to buy out of the money call options, that can artificially and in real life move the stock price higher, even though no one's actually buying the underlying stock from that perspective because market makers have to buy the stock. That's one thing to keep in mind. The second thing is we've seen volume slow down, but they're still quite high, so you have news of this cursor deal planning to close pretty much ASAP. This builds on yesterday being the first day with lever DTS. It's going to be interesting to me where the stock trades tomorrow because you obviously had the euphoria from Friday. You had all of the overseas investors who maybe weren't awake in their Saturday night, Saturday mornings to buy the stock on our Friday regular trading, so they lined up potentially Monday morning. As we get to Wednesday, we get to a little bit more normalized as it were, trading, but still this is again a stock that can move quite a bit.

**Tim Stenovec** (2:16)
Yeah. Well, it's moving quite a bit today. It was up as much as 17% earlier.
It's now up only 4.5%. So it's moved a lot just today.

**Carol Massar** (2:25)
Yeah. Kind of telling, right? I mean, they were so, as you say, so much pent up demand, right, that people wanted a piece of it. But as the days go on, then we start to be like, okay, kind of show me the money. I don't know. Show me that earnings. Like, I don't know. What is it?

**Bailey Lipschultz** (2:38)
Well, I think that's something we track with a number of stocks. This is kind of not a new phenomenon. It's definitely something we've seen the last few years. Tim, just think back to when Sarabras went public, it pretty much shot out of the gates and came back a bit to earth and then kind of found its footing and found what the market was willing to pay for it. So that's what we've been seeing. And it's not necessarily a negative sign. It's certainly something we've been keeping a track of. When you look back to Circle, it's trading about where it closed day one and that's T plus a number of months. So the big question going forward is you have the Footsie Russell buying on the near-term horizon. You have that NASDAQ 100 buying early next month. So investors are positioning for that. What happens when they're adding to that and you do get the force buying? And what happens when we're a month out from the IPO and you maybe don't have a catalyst?

**Tim Stenovec** (3:25)
Well, maybe a catalyst is when we start to hear from banks initiating coverage, Bailey, when so many banks were involved in this. I know there are some restrictions on when they can initiate coverage. What do you look for from the analyst community?

**Bailey Lipschultz** (3:40)
Well, that will be the first few days on the other side of the 4th of July holiday, just so you can mark your calendars now.
Wall Street will look at this and certainly buy the Elon dream, but I expect to see some skepticism just looking at Tesla, where again, it is probably the most debated stock even from the sell side, people whose banks make money off of the company selling equity and selling debt and selling other instruments. But it's certainly going to be, Tim, something we've never seen before, just because, I don't know, how do you model for the total addressable market of the moon? What is the asteroid mining opportunity look like to some of these analysts? I think that's going to be a thing to keep an eye on in addition to the fact that, again, this is the company that's going to have to spend a lot of money to realize that dream. What, Carol?