SpaceX raised $86 billion in its IPO then borrowed another $25 billion from the bond markets days later. Anthony Cheung and Piers Curran break down the financial engineering behind the deal, what a BAA1 credit rating means, and why Elon Musk is playing a completely different game to everyone else. Micron just posted EBITDA up 15x year-on-year with gross margins jumping from 39% to 85%. We unpack what that tells us about who&#x27;s really winning the AI race and why it&#x27;s no longer the Mag 7. Finally, Keir Starmer is out. UK gilt yields broke above 5% for the first time in decades before falling back sharply. We explain why markets rallied on the news and what Andy Burnham as Prime Minister means for U.K. bond markets. (00:00) Introduction (00:22) SpaceX Post-IPO Sell-Off (05:15) Mag 7 vs Semiconductors (12:27) Oil, Iran &amp; the Fed&#x27;s Hawkish Turn (15:45) Micron&#x27;s Blowout Earnings (22:18) SpaceX&#x27;s $25bn Bond Deal Explained (31:29) Keir Starmer Resigns UK Market Reaction

SpaceX $25 Billion Bond Deal, Micron Earnings & UK Political Crisis Explained

Market Maker

# Full Transcript

**Podcast:** Market Maker

## Participants

- **Piers Curran** (AmplifyME)
- **Anthony Cheung** (AmplifyME)

## Transcript

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Hello and welcome back to the Market Maker podcast. And in this episode, we're going to talk about the global tech sell-off, the SpaceX IPO reverse, Starmer's exit, and the reopening of the Strait of Hormuz. So, Piers, busy week as ever, it seems.

Busy, busy week. Yeah, with obviously SpaceX continuing to absolutely dominate most column inches. With actually two kind of stories, I would say. I'm gonna, well, let's talk first about the share price volatility, which, you know, how would I describe it? The sort of left-leaning media love nothing more than to say,

the kind of bash Elon. So, when you're getting SpaceX share price dumping, obviously they're all over this. So, we'll touch on the share price volatility, but I think I want to spend a bit more time on their mega bond issuance, which kind of, I don't know, came out of left field a little bit.

Obviously, they've only just IPO-ed and raised 86 billion. It's literally sat in their bank account. So, then they've gone off and borrowed 25 more from the bond markets. So, we'll touch a bit more on that.

But yeah, like with the share price volatility, yeah, I mean, as I said, lots of media headlines, you know, such as, you know, SpaceX dropped below a 2 trillion market cap, losing over 4 or basically losing 500 billion in market cap in just a few sessions.

That's kind of what I mean about the media loving it. I mean, the point is, it's still, you know, it's still a 1 plus trillion, basically it's still a 2 trillion dollar cap business, which in of itself is just absolutely extraordinary. So, let's not get carried away. But look, from a share price behavior, just a reminder, like right now we're trading at 152 bucks. That's where it closed last night.

Remember that the IPO was 135. So, we're still at a healthy premium above the IPO share price. But the market, when the stocks are after an IPO, the stock then opens and it starts trading on a stock exchange, right? And on the NASDAQ, it opened basically, I'm going to say, basically at 150 bucks. It opened on the NASDAQ. This is back on June 12th.

And then it just straight lined through the sky, basically, and actually ramped right up through $200. And I'm just getting, it's basically topped out at $225, right? So, it went 150 to 225. Huge ramp. And then ever since then, and that was quite quickly. So, over the first sort of two, three, basically over the first three trading days, ramp up, up, up.

And then ever since then, it's definitely been trending down. And actually, here we are. So, it's gone from 225 and it's all th...

SpaceX $25 Billion Bond Deal, Micron Earnings & UK Political Crisis Explained

Transcript

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SpaceX $25 Billion Bond Deal, Micron Earnings & UK Political Crisis Explained

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.