SpaceX Said to File Confidentially for IPO Before AI Rivals

0:00For years, the conversation around Bitcoin was the same. Is it real? And does it belong in a portfolio? While others debated, CoinShares got to work. In 2015, they launched the world's first Bitcoin EDP, regulated, listed, and built for institutional investors. Long before the U.S. market caught up. Today, they manage over$6 billion in assets and have remained profitable through every market cycle, including the 2022 downturn. What sets them apart? They're not a crypto exchange chasing trading fees, not a company betting its balance sheet on Bitcoin, not a mining operation. CoinShares is an asset manager with recurring fees, a fixed cost base, and a business model you can actually model.

0:39Now listed on NASDAQ under ticker CSHR. Learn more at coinsharesipo.com.

0:56So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now, a global workforce of 300 ,000 can use AI to fill their HR questions, resolving 94 % of common questions. Not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM. For many men, mental health challenges aren't recognized until they've already taken a toll. Work pressure, financial stress, changing relationships, and traditional expectations around masculinity can quietly wear men down, often without clear warning signs.

1:40In season three of The Visibility Gap, Dr. Guy Winch and his guests explore how these pressures show up, how to spot them earlier, and how men can access meaningful support. Listen to the new season of The Visibility Gap, a podcast presented by Cigna Healthcare.

1:59Bloomberg Audio Studios. Podcasts. Radio. News. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern. On Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts. Or watch us live on YouTube.

2:21Scarlet Fu:SpaceX, the startup founded by Elon Musk, the billionaire, has filed confidentially for an IPO. This is according to people familiar with the matter. Anthony Hughes is one of our reporters here at Bloomberg. He covers U.S. equity capital markets, and he joins us now. So when a company files confidentially for an IPO, what exactly does that mean, and where does that leave us in terms of when this company, SpaceX, will go public and actually list? Yes, well, really, there's a lot of steps along the way to going public, and for a company like SpaceX, which has been around for quite a long time, it's been a long road, But this is really the most definitive step, you could argue, for SpaceX in terms of going public, because it means that they've gone, they're serious in the sense that they've filed a hefty document with the SEC.

3:04We don't get to see it yet. Hopefully, we might hear about some of the things that are in it. But this really suggests that the deal is going full steam ahead. And I think all the body language we've seen in recent, even in just the last two or three days, we've seen a number of stories about different things that are happening around the deal. and it's really sort of indicated that it's full steam ahead and everyone's pretty confident they can get this done actually by June. Now, June is a few months away, so a lot of different things can happen. We're in a world where different things can change, so it's worth being a little bit wary about how easy it's going to be to achieve this, but it's a monster deal and it's somewhat unprecedented in many aspects of this deal, so you have to take that into account.

3:49And the company is considering a dual class share structure in the IPO that would potentially give insiders such as Elon Musk extra voting power to dominate decision making. Bloomberg News has reported. Is that something that they're going to go to the regulators and get some feedback on? Because we've seen other media companies, tech companies have this dual class stock. Yeah. So that would be very prominent in the document. It will be mentioned on the cover of the document, likely. That would be something that would be not unexpected in this situation, especially when you have an IPO which is going to be very hotly sought by investors.

4:26You tend to find that founders of tech companies that are large and fast-growing do have the ability to dictate such terms, and that's been my experience. It's not uncommon. It's not something that corporate governance purists love because it means that if things go wrong, investors may not get to have a huge say in any changes that they would like to see. But it's not surprising that that's something that would happen. And for Elon Musk, it might allow him to consolidate his empire somewhat. I'm just looking at Tesla. The D-E-S screen for Tesla does not have a dual class.

5:04Scarlet Fu:Yeah, so maybe he learned from the first time. And of course, it's not unusual for founders to launch an IPO like this. Meta has this dual class structure as well. And it's fittingly that we're getting this confidential IPO on the day that NASA is set to launch astronauts to the moon for the first time in 50 years. Anthony, one thing that we do know about SpaceX is that it acquired XAI, which is Elon Musk's AI startup, you know, earlier this year. What does that have to do with this IPO? Why was that kind of a necessary step towards this IPO? Well, I think people have different theories on that.

5:38I think it probably makes sense for the funding needs of that business to bring it into SpaceX. I think some people felt that that wasn't great for, it's made the business not as attractive as a whole. But, you know, at the end of the day, I think people are backing Elon Musk because of his track record. I mean, it's interesting you mentioned Tesla. I mean, it's just extraordinary that if we go back to 2010 when Tesla went public, I think it was a few hundred million dollar IPO of a company worth a couple of billion dollars. I mean, we're talking about such larger numbers now, but I think XAI is, we're going to see some numbers there.

6:15I mean, from all reports, it's been burning cash. So it's not adding to the profitability of the overall business. So that is a concern. But I think because we're also expected to see possibly Anthropik and OpenAI go public this year. I mean, there is an arms race for growing the AI aspects, you know, growing these businesses. And, you know, I think SpaceX is going to be part of that. And, you know, that's obviously adds a growth element to the business as well. But it does probably make the financials not look as good in the short term.

6:47Scarlet Fu:But getting there first. Yeah, exactly right. There's been reporting that Elon may be considering kind of rolling up all his stuff. You know, SpaceX may be acquiring Tesla, for example. X, yeah, he's already done that. I mean, what do we know about that? Has Elon said anything about that? Well, I think there's a lot of speculation about that. But I think what we're seeing here is that SpaceX is going to go public before that happens, most likely. I think, you know, there could be a change of plans. You never know. But there could be some industrial logic in Elon Musk having all of his businesses in one listed entity.

7:22But, you know, it may be for different reasons because of the way these businesses are developing. And obviously, most companies looking to go public are always trying to maximize valuation and make sure they can have access to capital. I mean, the thing about these businesses being so large is they have almost, I mean, for all the ups and downs of Tesla over the years, Elon Musk has demonstrated he has unlimited access to capital. And this business is going to have a good access to capital, which is going to allow them to do many things. That's the benefit of size and scale.

7:53Scarlet Fu:I know that you always look at the banks that get signed on to do this. SpaceX has lined up Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley. Basically the five biggest boat bracket firms. The big five. And they're going to have dozens and dozens of banks around the world helping them sell this thing. All I know is if I'm buying SpaceX, I'm thinking that the shareholder bases are going to be a big overlap. The people who kind of are in the Elon camp, they already own Tesla. My sense is they're going to be a very high crossover there between Tesla and SpaceX. So at some point down the road, particularly if he has voting, super voting shares, shares, he might be able to put the companies together.

8:28Yeah, I think it's a reasonable theory. What's next here? So when do we actually get to see some of the numbers, do you think? Well, so typically what happens is the filing will become public. Typically, there'll be a strategic decision about when that is. But if it's the case that the IPO is on track to actually, the stock's actually on track to debut perhaps in late June, which is, you know, get in before the summer.

8:53Scarlet Fu:Why file confidentially then? Why not just make it public? Well, because confidentiality was originally, when it was first, that SEC created the ability for companies to file confidentially. It was really for small companies to help small companies go public. But over time, it was extended to every company. So it was just something that was available to all companies. So it's something you would use. But, yeah, in this case, you know, it doesn't matter that much in this situation because basically what will happen is SpaceX will now be able to go out and start meeting investors and they'll be able to use information in that filing when they're talking to investors, still in a confidential way that's not really public, but the filing of the document will allow SpaceX to say lots of things to investors that they wouldn't otherwise be able to say.

9:40That's our understanding of the legal position there. And so, you know, it's really they'll be doing a lot of testing the waters meetings. The meetings are supposedly starting next week. And so it's really full-stay ahead here.

9:52Scarlet Fu:Stay with us. More from Bloomberg Intelligence coming up after this. For years, the conversation around Bitcoin was the same. Is it real? And does it belong in a portfolio? While others debated, CoinShares got to work. In 2015, they launched the world's first Bitcoin EDP, regulated, listed, and built for institutional investors. Long before the U.S. market caught up. Today, they manage over$6 billion in assets and have remained profitable through every market cycle, including the 2022 downturn. What sets them apart? They're not a crypto exchange chasing trading fees, not a company betting its balance sheet on Bitcoin, not a mining operation.

10:31CoinShares is an asset manager with recurring fees, a fixed cost base, and a business model you can actually model. Now listed on NASDAQ under ticker CSHR. Learn more at coinsharesipo.com.

11:16Thank you. with improving operating margins, or the S &P 500 minus high-debt companies. Chances are there isn't an ETF that fits your exact criteria. But on Public, you just type in a prompt and their AI screens thousands of stocks and build a one-of-a-kind index. You can even backtest it against the S &P 500. Then you can invest in a few clicks. Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market. And paid for by Public Holdings. Brokered services by public investing member FINRA SIPC. Advisory services by public advisors, SEC registered advisor.

11:55Crypto services by ZeroHash. Sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete disclosures at public.com slash disclosures.

12:06Scarlet Fu:Being a small business owner isn't just a career, it's a calling. Chase for Business knows how much heart and effort go into building something of your own. That's why they make business growth their priority. The Chase team takes the time to understand your mission, where you are now, and where you want to go. Their broad range of solutions is designed with you in mind so you can bring your ideas to life. From banking to payment acceptance to credit cards, you can conveniently manage all your business finances all in one place with their digital tools. Looking for tips and advice? Their online resources are always available to give you the solutions you need to help your business thrive.

12:43Scarlet Fu:See how your business can get stronger and go farther with Chase for Business. Learn more at chase.com slash business. Chase for Business. Make more of what's yours. The Chase mobile app is available for select mobile devices. Message and data rates may apply. JPMorgan Chase Bank N.A. Member FDIC. Copyright 2026. JPMorgan Chase and Company. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube. Shares of Nike down almost 14 percent after its latest earnings report.

13:25Scarlet Fu:The last quarter was fine. It's the outlook that has people a little bit concerned. Lily Meyer is a retail reporter and she joins us. Actually, is she here? I don't. Yeah, she is. Okay, I'm sorry. I thought she was going to be in studio, but I was wrong. Okay, Lily, great to speak with you. What is it specifically that Nike said that got people concerned? Because we'd been conditioned to really understand that Nike is in turnaround mode, so it's not going to be a straight line up. Yeah, exactly. And I think there's still fair to say they're in turnaround. What really spooked investors was they shared that the outlook for revenue for the year is just much lower than the street expected.

14:05They're still having challenges with Converse. They're now seeing some challenges in EMEA, and that's offset some of the gains in North America and in the running category. Lily, talk to us about the inventories, because I know that was a big issue for this company. Hey, let us just kind of get through weaning down our inventory and then we'll be in good shape. I thought they were making progress there. And I think I probably I'm probably representing the market here because the market, I guess, was surprised here. Talk to us about inventory. Yeah. So one place that inventories came up this quarter that was interesting is they said that they're seeing some elevated inventories in EMEA, in Europe, in the Middle East, and they're also seeing some traffic disruption there from the war.

14:46Scarlet Fu:What is it specifically with China that's been an issue? Because inventories has been a problem there, but it goes beyond that. I mean, it goes to a weakness in consumer spending and rising competition. But Nike has been really struggling to get its China business, its greater China business back to what it was. Yeah, exactly. So I would say it's, you know, a lot of increased competition there. And this quarter, they did show some improvement in greater China. I think, you know, things turned around a little bit more than was expected, but still not enough to excite investors. And one area that's really been weak for Nike is Converse.

15:27Scarlet Fu:I don't know about you, but I love Converse sneakers, but I'm also old. Yep, exactly. And Converse sales fell more than expected. I think you have something like a 15-year low in your stories. What is going on there? Because it has attracted some interest. Yeah. So Converse has been one of the most stubborn parts of the business to turn around under Elliott Hill. So I think Nike has really relied on Converse for the Chuck Taylor, but has struggled to diversify outside of that. So they're trying to make a basketball push, but we're not seeing a lot of progress in that area. And we reported yesterday that authentic brands has expressed some interest in Converse.

16:10So we'll see what happens there. Nike has said, you know, they're still invested in Converse, but it hasn't turned around yet. You know, it's, Lily, just for Nike overall, when I think of them, I think of them as just one of the great consumer product brands with just the, you know, the coolest cutting edge, leading edge kind of products. It feels like maybe they've lost that. I mean, how concerned are people that they've just kind of lost the feel for the market yeah i mean i think innovation was definitely a concern prior to elliot joining so under john donahoe one of the biggest concerns was there was a lack of innovation nike was relying too much on some of their lifestyle products so on the dunks the air jordan ones the air force ones elliot has really refocused the business around sport and he's been trying to innovate in that category.

17:03Nike had some new product come out around the Olympics. So I think that's an area to watch closely, you know, seeing how much innovation they're able to pump out.

17:13Scarlet Fu:And speaking of Elliott Hill, he's been on the job for now one and a half years. Does he own everything that's happened or does he still get a little bit of a pass? I mean, I imagine that it's frustrating for investors. It's frustrating for him as well to kind of see this stop and start progress? Yeah. So I think that in one of our stories today, we said that shares are down more than 35 % since he started, despite him executing a new strategy. He, you know, on a call with employees, you know, said he was so tired, you know, of talking about fixing the business. I think he's definitely starting.

17:49It seems like he's starting to feel some of the frustration there, the business not turning around. Stay with us. More from Bloomberg Intelligence coming up after this. Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds, and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R &D spend, small cap stocks with improving operating margins, or the S &P 500 minus high debt companies.

18:30Chances are there isn't an ETF that fits your exact criteria. But on public, you just type in a prompt and their AI screens thousands of stocks and build a one-of-a-kind index. You can even backtest it against the S &P 500. Then you can invest in a few clicks. Go to public.com slash market and earn an uncapped 1 % bonus when you transfer your portfolio. That's public.com slash market. Add paid for by public holdings, brokered services by public investing member FINRA SIPC, advisory services by public advisors, SEC registered advisor, crypto services by zero hash. Sample prompts are for illustrative purposes only, not investment advice.

19:07All investing involves risk of loss. See complete disclosures at public.com slash disclosures.

19:12Scarlet Fu:Small businesses are the pulse of every community. They bring people together, create opportunities and drive growth. With a widespread presence in communities across the country, Chase for Business supports small business owners at a local level. That makes it possible for you to connect, learn from each other, and grow together. There's a real commitment to seeing small businesses succeed. The Chase for Business team has knowledge and expertise that span a wide range of financial areas. They can help you make more informed decisions as you navigate the complexities of running your business. They'll help your business grow with individual guidance and convenient digital tools all in one place.

19:49Scarlet Fu:With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn more at chase.com slash business. Chase for business. Make more of what's yours. The Chase mobile app is available for select mobile devices. Message and data rates may apply. JPMorgan Chase Bank N.A. Member FDIC. Copyright 2026. JPMorgan Chase and Company. Here's a paradox. We buy insurance for peace of mind, yet the very policies we trust can deliver the biggest financial shocks. Across America, millions of claims are denied every year, not because people did anything wrong, but because policies quietly excluded the things that happened.

20:28The psychology of trust tells us we assume the contract is fair, but in insurance, the information gap is massive. The insurer knows every detail of what's covered. The policyholder rarely does. That's where My Policy Advocate comes in. For just 27 cents a day, their platform reads your policies and shows you in plain language where you're vulnerable. They're not selling insurance. They don't do that. It's about transparency, giving ordinary people the same understanding insurance companies have had for decades. Because when you know what's really in your policy, you can plan, protect, and avoid surprises.

21:02Before you trust your policy to protect you, let My Policy Advocate tell you what it really says. Visit MyPolicyAdvocate.com today. Peace of mind starts with knowing the truth. MyPolicyAdvocate.com. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube.

21:30Scarlet Fu:All right, let's switch gears and look at some other companies that are on the move. and I'm paying attention to RH, Restoration Hardware. The stock is plunging. It's down a quarter today. A quarter of its market value lost just this morning. Lindsay Dutch is our Consumer Hardline's Senior Analyst at Bloomberg Intelligence, and she joins us now. So this is very much a play on the consumer and a higher-end consumer as well. Lindsay, what do we know about RH and the outlook it's given? Hi, Paul. Hi, Scarlett. Thanks for having me. Yeah, so RH missed both on the top and the bottom line when we looked at fourth quarter earnings.

22:08Scarlet Fu:But I think worse is when we look at this year, the outlook was well below expectations, including expecting a sales decline in the first quarter. That kind of tells me between the miss and the bad look for first quarter, that demand has really dropped. and they're really going to count on a big spike in the back half of the year with a new collection coming to sort of drive that growth heading into 27. But the first half of the year certainly looks challenged. Lindsay, how much of this, you know, when we talk to you about your companies, one of the questions I always have is how much of this is industry-wide versus company-specific here?