Wall Street Breakfast

SpaceX said to hit $210B valuation, wins $843M NASA deal

SpaceX said to hit $210B valuation, wins $843M NASA deal. (00:25) Baxter (BAX) issues Class 1 recall of Life2000 ventilators over battery charging issue. (01:43) Amazon (AMZN) plans to launch discount shopping with direct shipping from China: report. (02:33)

Episode transcripts seekingalpha.com/wsb.

Show links:
Biggest stock movers today: BB, MU, and more
The negative correlation between the dollar and the S&P 500 will continue - Piper Sandler
Amazon joins $2T market cap club, boosted by Rivian stake and AI wave
Morgan Stanley to deploy OpenAI-powered assistant for financial advisors

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Duration:: 6m
Broadcast on:: 27 Jun 2024
Audio Format:: mp3

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Good morning! Today is Thursday, June 27. I'm Julie Morgan. SpaceX appears to be worth more than previously thought, and the company just signed a new contract with NASA. Baxter is facing a recall, and Amazon is looking at a new way to compete. SpaceX has raised the pricing for its tender offer to $112 per share amid strong investor demand, valuing the company at nearly $210 billion. The earlier pricing that was discussed for the insider shares would have valued SpaceX at around $200 billion. The new $210 billion valuation would be a record for a US private company and would make SpaceX the world's second most valuable startup, behind TikTok owner ByteDance, which has a $268 billion valuation. According to the Bloomberg report citing people familiar with the matter, the terms of the tender offer have not been finalized, and its size could change depending on interest from buyers and insider sellers. Meanwhile, NASA on Wednesday said it has selected SpaceX for a contract worth up to $843 million to develop a vehicle that will deorbit the International Space Station. SpaceX will develop the USD orbit vehicle and NASA will take ownership after development and operated throughout the mission. The US, Japan, Canada, and the participating countries of the European Space Agency have committed to operating the station through 2030, while Russia has committed to continuing station operations through at least 2028. Baxter has recalled more than 2,500 units of its life-2000 portable ventilator systems over damage to the battery charger dongle. The damage prevents the ventilator's internal battery from charging, leading either to a failure to charge or intermittent charging behavior. The recall has been designated by the FDA as Class 1, the most serious category. The urgent recall notice has instructed patients, health care providers, wholesalers, and distributors to ensure patients always have an alternate means of ventilator or oxygen therapy available to inspect the battery charger dongle for damage and to replace immediately if there's damage. Patients may continue to use the ventilator system once they confirm no damage to the dongle, and the battery is charging appropriately. Amazon is planning to create a shopping section that links buyers directly to cheaper items in Chinese warehouses. This is apparently an effort to compete on a more even playing field with sites like Team U and Sheen. According to a report by the information, the new online catalog will feature unbranded fashion, home goods, and other items that can be delivered in 9 to 11 days directly from Chinese sellers to Western buyers. The report said Amazon showcased the idea to a group of Chinese sellers in recent closed-door meetings. The new discount shopping section is expected to begin accepting inventory as early as this fall. An Amazon spokesperson told Seeking Alpha that they're always exploring new ways to work with their selling partners to delight their customers with more selection, lower prices, and greater convenience. PDD Holdings, which owns Team U, drop 1.26% on Wednesday. Meanwhile, Amazon perked up nearly 4%. I'd like to share with you a few other articles that you can find on Seeking Alpha. Piper Sandler says the negative correlation between the dollar and the S&P 500 will continue. Amazon joins the $2 trillion market cap club boosted by its Rivian stake and AI wave. And Morgan Stanley will deploy an open AI-powered assistant for financial advisors. On our Catalyst Watch for the Day, notable investor events include Aeroviromence Investor Day, management is anticipated to provide an overview of the company's portfolio and examine long-term goals and overall business health. And Nike will hold its earnings conference call at 4.15pm. Options trading implies a 7% move for the stock after the earnings update. Nike fails 6.9% after its last earnings report. The three stocks that have correlated the tightest with Nike on earnings day over the last year are under armor, Dick's Sporting Goods and Lulu Lemon. Starbucks has also seen minor share price moves in the past based on Nike's update on the business climate in China. Now, for a look at the markets today, as of 6am, Dow, S&P, and Nasdaq futures are in the red. Crude Oil is up 0.7% at $81 a barrel. Bitcoin is down 0.5% at $61,000. In the world markets, the FTSE 100 is down 0.2% and the DAX is flat. Blackberry is on our list of the biggest movers of the day pre-market. BB is up more than 7% after exceeding Q1 revenue expectations, despite a 61% year-over-year decline. On today's economic calendar, at 8.30am, GDP Q1, also at 8.30am, corporate profits, and at 10am, pending home sales. That's it for today's Wall Street Breakfast. Thanks for listening! To take full advantage of Seeking Alpha, join the highest quality community of real investors, discussing stocks and ETFs at seekingalpha.com/subscriptions. I'm your host, Julie Morgan. Go out and make it a great day! [Music] [BLANK_AUDIO]