In this trilogy of BNN Bloomberg interviews with anchor Kim Parlee, Phil Davis covers a lot of ground: SpaceX's blockbuster IPO and why he thinks it's wildly overpriced, how his AGI Roundtable of specialized AI agents has helped drive the Money Talk Portfolio up 461% in under two years, and two under-the-radar trade ideas that fit perfectly into that portfolio's strategy.
Largest IPO ever gets set to arrive amid AI-fueled valuation boom
Phil weighs in on the largest IPO in history and what it reveals about how Wall Street values growth, AI, and future potential — and why he thinks the enthusiasm is overlooking some serious risks.
Kim Parlee: The largest initial public offering in history may at last be on the horizon. SpaceX is expected to make its market debut at the end of the week, commanding a lofty valuation and intensifying investor enthusiasm around a new generation of richly valued companies, including OpenAI and Anthropic. Who better to talk about what we can expect than one of our favorite guests, Phil Davis, founder of philstockworld.com, who is standing by. Phil, great to see you as always. How are you?
Phil: I'm great, Kim. How you doing?
Kim: I am well, thanks. Let's start off by talking about SpaceX. $1.75–$1.8 trillion is the number we're hearing floated around. One of the biggest IPOs in history. What's your take?
Phil: $1.75 trillion? If they made a hundred billion dollars, that would be trading at 20 times earnings. They don't make a hundred billion dollars. They have revenues of $15 billion and they lost $5 billion last year. They would have to gain an entire Apple next year to justify the price they're coming in at now. It's physically impossible. It's logistically impossible. At their peak with everybody in the world wanting an iPhone, Apple only pulled in $200 billion a year, and it took many years for them to scale up to that level.
