Click here: to donate by Credit Card
Or here: to donate by PayPal
Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794
Thank you very much and God bless you.
Posted on 06/22/2026 6:26:22 PM PDT by BenLurkin
SpaceX shares tumbled 16% Monday – their third straight day of declines — on news that Elon Musk’s rocket company could launch a massive borrowing binge.
After a blockbuster initial public offering earlier this month, SpaceX on Monday revealed in a regulatory filing that it plans to sell investment-grade bonds. The bond offering would aim to raise about $20 billion, according to reports, and could help bankroll costly AI development and longer term goals like building data centers in space.
In addition to the offering of senior unsecured notes, the filing disclosed about $100.8 billion in cash.
The shares on Monday closed at $154.60, giving the company a $2.03 trillion market capitalization. That’s after SpaceX fell more than 8% Wednesday and Thursday before the US market closed on Friday.
SpaceX would be the latest tech giant to turn to debt to finance pricey AI to-do lists. This month Alphabet, Amazon and chip titan Nvidia have indicated they would tap debt markets.
“Investors remain skittish about all these debt offerings on the Street but it’s par for the course in this AI arms race,” said Dan Ives, a managing director at Wedbush Securities. “We are seeing massive debt and equity raises from Big Tech players to fund major capital expenditure buildouts over the coming years.”
(Excerpt) Read more at nypost.com ...
|
|
Click here: to donate by Credit Card Or here: to donate by PayPal Or by mail to: Free Republic, LLC - PO Box 9771 - Fresno, CA 93794 Thank you very much and God bless you. |
My daughter bought some along with 4 drone stocks.
The $75 billion was for collateral to borrow against, not to spend.
This is pretty much the same story with most large IPOs. If you got in quick and could bail fast, you could have made some quick cash. Wait a few months and then start buying after the lock up periods end. Long term you will make money. Short term, its a day trade.
Pelosi takes one in the shorts?
Hoping for double digits so I can pick up a few more shares at a discount.
Valuations and ROI are all over the place right now... but Starship launching at Falcon cadence will turn the whole industry.
Building AI super-clusters in orbit...
Comm net via Starlink for Terra, Luna, and Mars...
If off-Earth resources are no longer cost prohibitive, and most of that marginal utility stays up out of the gravity well...
Paradigm Shift like nothing we’ve seen before.
What would cap this is The Boring Company announcing a boring machine that fits in the cargo nacelle of Starship...
my first thought as well, as in WTF???
That article never said they needed anything more.
Last seen was Elon and Pelosi in front of 7-11 asking for 10 bucks to buy a six pack of beer.
Correction, it was only Pelosi. LOL
A 16% loss in the first week. Great work, Elon!
“The IPO raised $75 BILLION, and now it needs money????
The $75 billion was for collateral to borrow against, not to spend.”
____________________________________________________________
Why would you use your new capital as collateral to borrow against at an additional fee?
That doesn’t make a speck of business sense.
Depends on how low your rates are and on what you are capitalizing for.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.