The $1.75 Trillion SpaceX IPO Will Test This Rally with Liz Thomas and Bill Capuzzi, CEO of Apex

**Guy Adami** (0:00)
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**Dan Nathan** (0:31)
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**Liz Thomas** (1:22)
Basically, the average drawdown in year one of an IPO, it's big. You have to expect that to be the case. It doesn't necessarily mean that it's a bad company, but that first year is very volatile. We've never seen reports from this company before. Suddenly, it's very transparent because they're forced to be transparent. And we've got companies going public that are not profitable yet. The chances of it at some point breaking its IPO price, I think, are probably pretty high. I think the first month, two months of this trading is going to be all over the place.

**Bill Capuzzi** (1:52)
It feels like we're in this position where there's going to be some correction sooner than later. Some of these prints that are going off, like inflation numbers that came out today, it's like, man, there's a lot of bad news out there. But we just keep on rolling. And I think we got lucky.
You think about the latter part of last year into this year, that we had this AI trade to keep this train on the tracks and rolling.

**Guy Adami** (2:16)
Hey, warm welcome to the Risk Reversal Podcast. I'm Guy Adami. You can see on the screen, if you're watching, if you're not, you'll hear a voice in a second. She, of course, Elizabeth Thomas of SoFi. Hello, Elizabeth, how are you?

**Liz Thomas** (2:28)
Hello, I am good. How are you? I believe this is dropping on one of the biggest days of the year, if not the biggest day of the year in the market.

**Guy Adami** (2:38)
A hundred percent. And we are going to discuss that. By the way, stick around for the conversation to Dan Nathan, who as we speak is at a Mumford and his son's concert. But Dan and I sat down with Bill Capuzzi, of course, the CEO of Apex Fintech Solutions. He had a lot of great insights as to what's going on.
Wonderful conversation. I encourage you to listen. With that said, Elizabeth just did a great tease. This SpaceX, highly anticipated by a lot of people, not only in our world, but sort of in the general news world as well. So we will see how it trades. We will see what is going on. We will have more information, I am sure, next week. But my question to you to start things off, the importance of it, and depending on how you want to look at it, how well it trades, how well the media covers it, all the different aspects that go into a highly anticipated IPO.

**Liz Thomas** (3:28)
I mean, immeasurable. The importance of this is absolutely immeasurable.
I think this may end up being one of the biggest, if not the biggest market story of the year, if we take things like macro and other exogenous shocks out of it.
So just for anybody who hasn't been following the numbers, this company is going public at $1.75 trillion, going public at a mega cap valuation, which is wild. The other thing that is important about it is that only 5% of the shares are actually going to be available as free floating. So $1.75 trillion valuation, but only 5% of the shares are actually going to be made available in the trading. So it's not as if every single share is suddenly going to be available in the secondary market, which may even drive prices higher because there's not as much to go around. Now, I think the reason that this is so important, there may be a few reasons. First of which, there are people who really don't believe in this whole space idea, and there are people who really, really do believe in it. All I will say, love or hate Elon Musk, he makes some really grandiose projections, he makes some big promises, and perhaps he gets the timelines wrong, but there have been a lot of those grandiose promises and projections that he has still achieved. So I don't think this is a good time to start betting against him necessarily, and I think this will be fascinating to watch, and it's all intertwined. It's intertwined in the AI theme to have data centers in space. It's intertwined in innovation and exploration. This is a huge deal. The other thing, the reason why this is such a big deal for the market at large is that I think this sets the precedent and sets the stage for the possibility of Anthropic and OpenAI going public later this year, and I frame that as the possibility because they've both only filed confidentially, they are not going to be held to that. They could very well still pull those IPOs if something should change in the near to medium term.