A US–Iran cessation of hostilities, due to be signed Friday, has collapsed the oil price, firmed the rand back toward 16.00 and let gold hold key support — and Simon Brown argues markets are heading back to where they sat in late February, just with fewer rate cuts on the table.<br>This episode also unpacks the most hyped IPO in history opening softer than expected, South African inflation surprising lower at 4.5% with chunky petrol and diesel cuts due in July, a no-change FOMC meeting, and a busy stocks-on-the-move list.<br>Topics: US–Iran ceasefire, oil, rand, gold, emerging markets, SA inflation and fuel prices, FOMC, the big tech IPO, Clicks, Discovery, Bidcorp, Outsurance, Growthpoint, MTN and Mondi.<br>WorldWideMarkets is part of JustOneLap.com.

Peace in Our Time | Are We Just Going Back to February?

WorldWide Markets with Simon Brown

# Full Transcript

**Podcast:** WorldWide Markets with Simon Brown

## Transcript

WorldWide Markets this week, peace in our time. We'll find out Friday. SpaceX IPO up about 50%. Local inflation slightly better than expected. And FOMC and stocks on the move.

I'm Simon Brown. This is WorldWide Markets episode 682 for 17 June. I'm recording this late Wednesday morning because yesterday, Tuesday was a holiday. So we did not get to it then. But well, here we are now.

WorldWide Markets, powered by Standard Bank, Global Markets, Retail and Shift. The global money app that puts travel, shopping, payments and investments in the palm of your hand. Enjoy the cheapest Forex rates anytime, anywhere. Shift, powered by Standard Bank. Thanks to Standard Bank. Thanks to Shift. Remember, you can buy SpaceX at your local Shift. So let's have a look at that SpaceX IPO.

Listed on Friday, $135 was the price. They ended up raising some $83, $84 billion. They're not using that to buy Cursor. They are buying Cursor, but they're using Script. The Cursor deal they announced back in April. It was $10 billion of business and maybe $60 billion buyout. They're now buying out, but they're going to use shares for that. So no worries.

I've got to say, the stock opened at $150, which was a little over 10%. And for the most juiced IPO in the history of IPOs, I didn't think that was very much at all. It has traded better. And let's be clear about that. And it is now trading up at closed yesterday, Monday, Tuesday, rather, $2.180. It's now trading at $2.826 pre-market. That closed for yesterday is about 50% higher.

That's not bad. I mean, it's not, you know, what I think works against it is perhaps is a now $2.6 trillion company. Massive pops are perhaps harder to come by. But here are some fun numbers. We don't have PEs because there is no E. Price to book, $33.9 EV to sales. Let's look at the forward is $62. EV EBITDA is $199.

But let's go forward and let's look at financial year 2028. Expectation is almost $100 billion of sales. Let's be generous and say they get their $100 billion for financial year 2028.

That puts it on a forward price to sales of around about 27. Let's call it 27. It's a big number. Is it the terrifying number? I don't know that it's as terrifying a number as many of us perhaps thought it would be.

To be clear, we're looking way into the future. 2028. A lot can go wrong then. But if they can do $100 billion of sales at that point, their earnings per share is $0.07, which means that they are, you know, they own a PE. I'm trying to run the PE. They're on a 2,000 PE. I mean, the numbers are absolutely crazy. Sorry, about a 200. Yeah, about a 2,000 PE at that point. But at least they get in their price to sales route.

What are we looking from analysts? We actually have some numbers already coming in. Let's look at price targets. So there's a low price target of $63. There's an average of $188 and there's a high of $310. There's one strong buy, four buys a...

Peace in Our Time | Are We Just Going Back to February?

Transcript

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Peace in Our Time | Are We Just Going Back to February?

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.