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- SpaceX Plans Tender Offer as Valuation Rockets to $250 Billion
SpaceX Plans Tender Offer as Valuation Rockets to $250 Billion
Lucian H & Gun Woo Lee
November 18, 2024
Good Morning. This is the Investor Lookout with the daily digest.
Here’s what we got today:
🚀 Elon Musk's SpaceX To Launch Tender Offer in December
📱 Samsung's $7 Billion Buyback Sends Shares Soaring.
Elon Musk's SpaceX To Launch Tender Offer in December
SpaceX is gearing up for one of its biggest flights. Elon Musk's company is setting up a tender offer in December to sell existing shares at $135 each, pushing its valuation past $250 billion. After being valued at $210 billion in June, the new valuation marks a 19% increase in price since then. The increase was driven by strong investor demand and Starlink's rapid expansion to 4 million users. Starlink controls over two-thirds of the planet's satellites. Musk's Mars ambitions might align with Trump's re-election, as space exploration could become a national priority under the new administration.
Musk turned down the possibility of taking SpaceX public, citing pressures of short-term results faced by publicly listed companies
SpaceX might advocate for relaxed requirements for worker and participant safety in private space flights under Trump's presidency
Samsung's $7 Billion Buyback Sends Shares Soaring
Samsung just launched the 'Galaxy S' of share buybacks. The South Korean giant just announced a significant share buyback program worth 10 trillion won ($7.17 billion). The first phase is scheduled for the next three months, with 3 trillion won ($2.15 billion) put aside to buy 50.41 million common shares and 6.91 million preferred shares, which will then be canceled to enhance value for investors. The move is the first of its kind since 2017, when Samsung ($KR:005930) completed a 20.7 trillion won buyback. The tech company's shares jumped 7.2% on Friday after the news broke, the most significant daily increase since March 2020.
Despite the considerable daily jump, Samsung's stock is still down 32% this year
The tech company's semiconductor division profits fell 40% quarter-over-quarter
Market Take
Markets
Most Gulf markets fall on Fed rate cut concerns. Most Gulf stock markets fell on Sunday after U.S. economic data and comments from the Federal Reserve hinted that interest rate cuts might not come as soon as investors hoped. [Read]
Trump win has economists concerned US economy will fail to make soft landing. Investors were feeling optimistic about a "soft landing" for the U.S. economy, but Donald Trump's election victory complicated the outlook. [Read]
China retail sales beat forecasts in October while real estate slump worsens. China reported strong retail sales growth Friday and a decline in real estate investment in October, signaling that the recent stimulus already works for specific sectors. [Read]
Business
50 million people have stopped buying luxury brands like Dior and Burberry after ‘broken promises’ to customers. The personal luxury goods market is set to slow down this year for the first time since the 2009 Great Recession. [Read]
Jeff Bezos' Ex-Wife MacKenzie Scott Sells More Amazon Shares. MacKenzie Scott, the ex-wife of Amazon ($AMZN) founder Jeff Bezos, recently sold 11% of her Amazon shares, valued at over $8 billion. Scott has liquidated two-thirds of her Amazon shares in almost six years. [Read]
Read the casual emails between Elon Musk and Sam Altman that kicked off OpenAI. Elon Musk amended his lawsuit against OpenAI and its CEO, Sam Altman, adding Microsoft as a defendant. He included emails between him and Altman discussing the start of OpenAI. [Read]
Featured News
Lookout Stock of the Month
Name | Price | 24H | YTD | Buy Rating |
|---|---|---|---|---|
Talen (TLN) | $200.43 | -1.38% | +213.17% | 80/100 |
Current Price | 24 Hours Gain / Loss | Year to date Gain / Loss | Red-Yellow-Green | |
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
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