# Intel to Sell $15 Billion in Stock After AI Boosts Demand

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 10 Aug 2026, 22 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/6f1ae8fc-930d-487f-88ba-b4a20111edcf/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Stacey Vanek Smith -- Matthew Bloxham, Bloomberg Intelligence Senior and Tech Analyst, discusses top tech stories. Intel Corp. plans to offer $15 billion worth of new stock in its first public share sale since 1971 to extend its comeback and capitalize on the AI boom. Separately, Meta Platforms Inc. introduced a new downloadable AI model called Muse Glimmer that can run on a personal computer. -Anurag Rana, Senior Tech Analyst for Bloomberg Intelligence, discusses top tech stories. Microsoft is planning to “significantly” increase production of its internally designed next-generation AI chips next year, The Information reports, citing people familiar with the matter. Microsoft plans to unveil its new Maia 300 chip this fall, potentially as soon as next month. Separately, Apple was downgraded to an underperform rating at Jefferies due to concerns about the outlook for the company's iPhone. -Bailey Lipschultz, Bloomberg News Senior Equities Reporter, discusses the latest at GameStop and the IPO market. GameStop Corp. is considering withdrawing its $56 billion bid for eBay Inc. and may propose a partnership or joint venture instead. Switch Inc. filed confidentially for a US IPO, joining its data center peers in tapping demand for exposure to the artificial intelligence theme. Formlabs, a maker of 3D printers, is in early talks with potential advisers for an initial public offering, according to people familiar with the matter. -Matthew Palazola, Bloomberg Intelligence, Senior Analyst, P&C Insurance, discusses Berkshire Hathaway earnings. Berkshire Hathaway Inc. spent about $4.5 billion to buy back its own shares in the second quarter and purchased nearly $20 billion of equities in the period. Operating earnings climbed 16% in the three months through June to nearly $13 billion, driven in part by gains in the conglomerate’s manufacturing, service and retailing division, as well as at its utilities business. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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[0:18] Speaker 1: Listen on demand wherever you get your podcasts, or watch
[0:21] Speaker 1: us live on YouTube.
[0:24] Speaker 2: Let's get a little techie before you. The nasdas up
[0:27] Speaker 2: fourteen points today. Not much going on out there, but
[0:29] Speaker 2: there's a lot of news flow out there in the
[0:31] Speaker 2: tech spaces, or typically is. And for that we like
[0:33] Speaker 2: to check in with our buddy, Matthew Bloxam, Bloomberg Intelligence
[0:36] Speaker 2: Senior technology Analysty covers a bunch of stuff and he
[0:38] Speaker 2: does it from London.
[0:40] Speaker 3: Hey Matt, thanks for joining us here. I mean Intel
[0:43] Speaker 3: coming to the market.
[0:44] Speaker 2: Here's another big tech company coming with a big equity raise.
[0:48] Speaker 2: It seems like these guys have an a safeable need
[0:50] Speaker 2: for capital.
[0:52] Speaker 4: Yeah, I do, that's right. So what's fifteen billion dollars?
[0:55] Speaker 4: Roughly three percent of the market cap, So it's not
[0:58] Speaker 4: that big, but you know, I think still always a
[1:01] Speaker 4: little bit surprising when these companies come to market for equity.
[1:05] Speaker 4: You know, they raised I think six and a half
[1:06] Speaker 4: billion dollars in debt earlier this year, fairly expensive coup
[1:11] Speaker 4: points kind of four point sixty five percent through just
[1:14] Speaker 4: six point two percent. So I guess you know they're
[1:15] Speaker 4: looking to balance their capital needs across different parts of
[1:20] Speaker 4: the balance sheet structure. Yeah, the valuation is pretty full
[1:26] Speaker 4: right now, and if you look forward a couple of years,
[1:28] Speaker 4: it's on fifty times earning. So I guess you're the
[1:31] Speaker 4: management team take in the view that if there was
[1:33] Speaker 4: ever a time to raise some equity, this is a
[1:36] Speaker 4: relatively quote unquote cheap, cheap time.
[1:39] Speaker 5: To do it.
[1:39] Speaker 4: You know that they, along with everybody else, have quite
[1:42] Speaker 4: substantial investment needs compared to some other big tech names.
[1:45] Speaker 4: Their capex is pretty low, you know, probably about twenty
[1:48] Speaker 4: billion dollars this year, maybe rising to twenty six billion
[1:51] Speaker 4: dollars next year. But this gives them a good cash
[1:55] Speaker 4: cushion to pursue the current projects, and who knows, perhaps
[1:58] Speaker 4: even consider some acceleration of what they're doing.
[2:03] Speaker 6: What about Meta This morning, they've just introduced a new
[2:06] Speaker 6: AI model called news Glimmer. I guess it's an open
[2:09] Speaker 6: source AI model meant to compete with the Chinese model
[2:12] Speaker 6: deep Seek. It's up this morning. How do you feel
[2:15] Speaker 6: about it?
[2:17] Speaker 4: Yeah, you know, I think we're at a fairly early
[2:20] Speaker 4: stage of how the whole AI foundational model play is
[2:25] Speaker 4: going to evolve. Yeah, this is quite a different position
[2:29] Speaker 4: to the likes of open AI and anthropic who work
[2:34] Speaker 4: with closed models. Gemini at Google with geminis a little
[2:37] Speaker 4: bit kind of mixed. Some open source models and some
[2:41] Speaker 4: closed models have met a very much kind of penance
[2:45] Speaker 4: fortunes to the flag of the open model, and you know,
[2:48] Speaker 4: really trying to kind of make a big difference in
[2:51] Speaker 4: markverg today in an essay being somewhat critical of some
[2:55] Speaker 4: of its competitors, you're saying that really we should be
[2:59] Speaker 4: democratizing AI and putting it in the hands.
[3:02] Speaker 3: Of the user.
[3:02] Speaker 4: So I think you're open to see how why you
[3:06] Speaker 4: adopted this will be what it means for the kind
[3:09] Speaker 4: of longer term economics. Both matter in the industry, but
[3:12] Speaker 4: it's certainly an interesting move, and I think as much
[3:15] Speaker 4: as anything, the language and the rhetoric that Zuckerberg is
[3:19] Speaker 4: using around this push Matt.
[3:22] Speaker 2: You know, it's as being in these markets for forty years,
[3:26] Speaker 2: it's always surprised me in a negative sense. How Europe
[3:30] Speaker 2: written large basically missed the whole technology revolution. All the
[3:35] Speaker 2: tech is in the US and Asia and things like that.
[3:38] Speaker 2: Is the same thing happening with AI. Well, Europe just
[3:43] Speaker 2: kind of outsource it to other people and not participate.
[3:47] Speaker 4: It does, unfortunately seem that way. You know, we have
[3:51] Speaker 4: mistrale As I guess the most well known European AI model,
[3:59] Speaker 4: but it sits in the shadows of the US and
[4:03] Speaker 4: the Chinese alternatives. So yeah, you know, it's a perennial
[4:08] Speaker 4: problem for the regional So there's a kind of big,
[4:10] Speaker 4: really big introspective process going on right now about Europe
[4:14] Speaker 4: twenty thirty five and what funding is needed to kind
[4:17] Speaker 4: of really close the gap and genuinely make Europe competitive enough.
[4:21] Speaker 4: The numbers are eyewatering, and even if the money was there,
[4:25] Speaker 4: I think there's so many kind of structural and cultural
[4:28] Speaker 4: issues about the way Europe works that are very serious
[4:32] Speaker 4: obstacles have to get around, and all the time they're
[4:35] Speaker 4: trying to figure those issues out, the US and China
[4:38] Speaker 4: are running full steam ahead. So it does. I would
[4:41] Speaker 4: think the base case scenario would be that Europe continues
[4:45] Speaker 4: to be a taker of technology from other parts of
[4:49] Speaker 4: the world.
[4:50] Speaker 3: Stay with us.
[4:51] Speaker 2: More from Bloomberg Intelligence coming up after this.
[4:57] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[5:01] Speaker 1: weekdays at ten am Eastern on Apple Coarcklay and Android
[5:04] Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
[5:07] Speaker 1: you get your podcasts, or watch us live on YouTube.
[5:11] Speaker 3: I'm looking at Microsoft.
[5:13] Speaker 2: This is a name Stacy, Tom and I, Tom Keen
[5:15] Speaker 2: and I.
[5:16] Speaker 3: For the longest time, we're saying just.
[5:17] Speaker 2: You know, as of a week or two ago, why
[5:19] Speaker 2: is this stock down twenty five percent year to date?
[5:22] Speaker 3: This is Microsoft.
[5:23] Speaker 2: I guess you was thrown out with a lot of
[5:24] Speaker 2: those software stocks. I thought AI was going to put
[5:26] Speaker 2: them out of business.
[5:27] Speaker 3: But this is.
[5:28] Speaker 6: Microsoft and Microsoft and it's one of the Magnificent seven.
[5:32] Speaker 2: Yeah, I mean you know, so sure enough, they put
[5:35] Speaker 2: up a good print last week, good earnings, stocks erased,
[5:39] Speaker 2: all those losses now up three or four percent on
[5:41] Speaker 2: the year, five percent for the year.
[5:43] Speaker 3: So how about that.
[5:45] Speaker 2: More news out on Microsoft today. They're going to raise
[5:49] Speaker 2: next gen AI chip production next year.
[5:51] Speaker 3: It's pretty interesting. Let's according to the information.
[5:53] Speaker 2: Anurag Rana joins this senior technost for Bloomberg Intelligence on Ron.
[5:57] Speaker 2: It's really amazing how the market has kind of got
[6:01] Speaker 2: a new appreciation I view for the Microsoft story that
[6:04] Speaker 2: I think was really people were questioning and is Microsoft
[6:08] Speaker 2: at risk from AI? How do you think about it?
[6:11] Speaker 7: Yeah, I mean you're absolutely right. There was that risk
[6:14] Speaker 7: of disruption from some of its product from AI. But
[6:16] Speaker 7: there was another risk. There was another narrative that when
[6:19] Speaker 7: you look at the three hyper scale clout providers, Google,
[6:23] Speaker 7: Amazon and Microsoft, Google's chip has just taken off. I
[6:27] Speaker 7: mean their TPUs are all the rage in the market,
[6:30] Speaker 7: and Amazon's actually come out with their own print that
[6:34] Speaker 7: you know, they're making tens of billions of dollars with
[6:37] Speaker 7: their own chip as well. So what happens is when
[6:41] Speaker 7: you are looking at this fight of everybody expanding into
[6:44] Speaker 7: AI data centers, they do need chips. They're all running
[6:48] Speaker 7: to Nvidia, but two of the three providers talked about
[6:51] Speaker 7: having their own chips. Now Microsoft was not in that
[6:54] Speaker 7: game at that point. They have their own chip, but
[6:56] Speaker 7: it's not widely embraced. But today's report when it talks
[6:59] Speaker 7: about that they're going to go out and increase the
[7:02] Speaker 7: production of their own chips, which means customers may be
[7:04] Speaker 7: ready to use those and if that's the case, their
[7:08] Speaker 7: cost of spending into that capital expenditure, you know, boom
[7:12] Speaker 7: will start to go down in a sense, down on
[7:14] Speaker 7: a relative basis or per token basis. So it's a
[7:17] Speaker 7: very good news for them in the long run.
[7:19] Speaker 6: Well Microsoft might be having a very good day, but
[7:21] Speaker 6: Apple is having a pretty rotten day. What's going on
[7:25] Speaker 6: with them? Apparently it has something to do with hardware
[7:28] Speaker 6: not coming out the way that they're hoping.
[7:31] Speaker 7: Uh no, I don't. I mean, I think that's a
[7:33] Speaker 7: different somebody's downgrade. That's a different story. But when you
[7:35] Speaker 7: look at Apple, and let's go back to that time
[7:38] Speaker 7: period when when Paul talked about when Microsoft was down
[7:41] Speaker 7: you know, twenty five percent or so over the year
[7:43] Speaker 7: or you know, at that time, what was happening was
[7:46] Speaker 7: everybody was worried about ROI on AI trade. This is
[7:49] Speaker 7: before earning season. You know, you saw Google you So
[7:52] Speaker 7: everybody was worried about them. But at the same time,
[7:55] Speaker 7: everybody loved Apple because they were not spending that much money.
[7:58] Speaker 7: But after the result, what has happened is people are
[8:01] Speaker 7: relatively more comfortable going back to the AI trade or
[8:05] Speaker 7: going after the risky assets. And given Apple's valuation where
[8:08] Speaker 7: it was at that point, it was well in the thirties.
[8:11] Speaker 7: We are seeing sums sell off on that and people
[8:14] Speaker 7: buying more of you know, the AI trade. So I
[8:16] Speaker 7: think there's a little bit of factor shifting there, not
[8:19] Speaker 7: so much about one product or the other.
[8:22] Speaker 2: To your clients, your investors in big tech companies do
[8:25] Speaker 2: they like free cash flow and they upset if they
[8:27] Speaker 2: don't get free cash flow.
[8:29] Speaker 7: So two different things once that are looking at this
[8:32] Speaker 7: massive capex going in, they're seeing what is the benefit
[8:36] Speaker 7: of that for these companies. So if Microsoft was able
[8:39] Speaker 7: to show you know, sequel chain improvement in as your
[8:42] Speaker 7: sales growth, Amazon was able to show that. Google was
[8:45] Speaker 7: able to show that, So I think they're getting a
[8:47] Speaker 7: little more comfortable that these companies know what they're doing
[8:50] Speaker 7: when they're spending you know, hundreds of billions of dollars
[8:53] Speaker 7: at that time. The second group is somebody who doesn't
[8:56] Speaker 7: want to be at part of this trade and say,
[8:57] Speaker 7: you know what, I like Apple, I have plus billion
[9:00] Speaker 7: dollars in free cash flow. Over there, they're buying back
[9:03] Speaker 7: that stock. iPhone's doing well, it's gaining share in China.
[9:06] Speaker 7: So there are I mean, you could say there are
[9:08] Speaker 7: a couple of buckets of people who are looking at
[9:10] Speaker 7: this trade from different lenses.
[9:13] Speaker 6: What about in the hardware sector. Apparently there's a big
[9:16] Speaker 6: smart watch lineup that's that's getting ready to be released.
[9:19] Speaker 6: Obviously there's the folding phone everyone has been waiting for.
[9:22] Speaker 6: How is that Apple looking in the in the hardware sector.
[9:25] Speaker 7: So when you look at the watch itself, it doesn't
[9:27] Speaker 7: move the needle for Apple. It's an accessity that goes
[9:30] Speaker 7: with the phone along with it. I mean, you're not
[9:32] Speaker 7: going to just buy a small a watch without being
[9:36] Speaker 7: in the Apple ecosystem. That's a very unlikely thing. But
[9:39] Speaker 7: one of the things Mark Erman's talked about it when
[9:41] Speaker 7: you look at some of the other variables you look
[9:43] Speaker 7: at you know, the Aura ring, which is just a
[9:47] Speaker 7: phenomenal product right now for a lot of people to
[9:49] Speaker 7: track their sleep. You're looking at products that are coming
[9:52] Speaker 7: out in the market without a screen. Garment just launched one.
[9:56] Speaker 7: I mean I've ordered it, but it's on backlock for me.
[9:59] Speaker 7: When you you look at a woop, these are all
[10:01] Speaker 7: bands that you could use to track a lot of
[10:04] Speaker 7: these you know, sleeping and you know, just your normal
[10:07] Speaker 7: vitals without the need of a screen oriented product, and
[10:12] Speaker 7: that's what I think you're going to see down the road.
[10:14] Speaker 7: But that, to be honest with you, does not move
[10:16] Speaker 7: the needle. The foldable does. Because Apple's been behind. They
[10:19] Speaker 7: don't have a foldable phone right now, and iPhone accounts
[10:22] Speaker 7: for over fifty percent of Apple sales. So if they
[10:25] Speaker 7: are able to come out with a foldable device, I
[10:27] Speaker 7: think it's going to create a lot of buzz next year,
[10:30] Speaker 7: especially in emerging markets where if people are not worried
[10:33] Speaker 7: about the price of it, which Margoman thinks is going
[10:35] Speaker 7: to be around twenty five hundred dollars. I think that's
[10:38] Speaker 7: going to be a very very cool factor that we'll
[10:41] Speaker 7: see within the next one month.
[10:43] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[10:50] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[10:54] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[10:57] Speaker 1: Auto with the Bloomberg Business app, and on demand wherever
[11:01] Speaker 1: you get your podcasts, or watch us live on YouTube.
[11:05] Speaker 2: It seems like that's a quiet day, but there's a
[11:07] Speaker 2: lot going on out there in the equity capital markets.
[11:10] Speaker 3: Intel we started this morning. They're going to do sell
[11:12] Speaker 3: fifteen billion dollars in common.
[11:14] Speaker 2: Stock to fuel some of their AI demand. Boom got
[11:17] Speaker 2: some IPO filings, We got some stocks I thought were
[11:20] Speaker 2: meme stocks. I'm not sure if they still are, but
[11:22] Speaker 2: we had Billy Lipschultz and to kind of explain it
[11:24] Speaker 2: all to us, Billy Lipschutz, Bloomberg.
[11:25] Speaker 3: News senior equities reporter.
[11:27] Speaker 2: First was game Stop's potential bid was fifty six billion
[11:32] Speaker 2: dollars for eBay?
[11:32] Speaker 3: Was that ever considered real legit?
[11:35] Speaker 5: It was always kind of laughed at, really speaking what
[11:37] Speaker 5: I was doing. It was. It was It was a
[11:39] Speaker 5: market I don't want to matter too much, but it
[11:42] Speaker 5: was basically seen by most on Wall Street is kind
[11:43] Speaker 5: of a marketing campaign from Ryan Cohen, who is the
[11:46] Speaker 5: now head of game Stop. He was a big driver
[11:48] Speaker 5: between behind that twenty twenty one memestock Mania round game Stop,
[11:53] Speaker 5: becoming the largest shareholder, one of the larger shareholders leading
[11:56] Speaker 5: the company. He was a co founder of Chewy, made
[11:58] Speaker 5: his name through that. So I was broadly seen as
[12:02] Speaker 5: kind of a interesting thought, but resoundingly rejected by eBay
[12:08] Speaker 5: back in May. He said he was going to come
[12:10] Speaker 5: for him one way or another, and ultimately, according to
[12:13] Speaker 5: our reporting, now considering pulling that bid.
[12:16] Speaker 6: Why does game stop want eBay? I mean, the market
[12:18] Speaker 6: seem quite disappointed this didn't happen or isn't going to
[12:21] Speaker 6: happen potentially.
[12:22] Speaker 5: Well, the big debate always was, you want to make
[12:25] Speaker 5: a fifty six billion dollar takeover when you have a
[12:27] Speaker 5: market value of eight billion dollars and you have cash
[12:30] Speaker 5: and equivalents of eight billion dollars. So there's a huge
[12:32] Speaker 5: gap you have to bridge at some point. Yeah, yeah,
[12:35] Speaker 5: you know, if you work on Wall Street, there there
[12:37] Speaker 5: are levers you can pull. But the reason I think
[12:40] Speaker 5: we're seeing eBay shares down a little bit again is
[12:44] Speaker 5: just given kind of that option, the call option potential
[12:47] Speaker 5: of this being something that could work out. Cohen basically
[12:51] Speaker 5: has really been vocal and bashing eBay management, talking up
[12:55] Speaker 5: the potential synergies that they could see. Again eBay downplayed
[12:58] Speaker 5: those banker or analysts were really like two billion dollars
[13:01] Speaker 5: in propose, Energy still feels like a bridge too far
[13:04] Speaker 5: on the potential merger. This is a company that Cohen
[13:07] Speaker 5: has been either publicly leading or behind the scenes leading
[13:10] Speaker 5: for quite some time, and the big question has been
[13:13] Speaker 5: what does it actually look like? What do you look
[13:15] Speaker 5: like if you're a game retailer in an era where
[13:17] Speaker 5: people download games.
[13:19] Speaker 3: All right?
[13:19] Speaker 2: Data center company Switch good name filed confidentially for a USIPO.
[13:25] Speaker 3: What do we know about Switch?
[13:27] Speaker 5: Data center rates are hot? Anything around data center's hot.
[13:31] Speaker 5: We had reported back in July early July the company
[13:35] Speaker 5: was kicking off a private funding round led by Anderson
[13:39] Speaker 5: Horowitz that would raise two billion dollars equity value or
[13:42] Speaker 5: enterprise value excuse me, approaching fifty billion dollars. So our
[13:46] Speaker 5: reporting that they filed confidentially on Friday working with BAA City,
[13:50] Speaker 5: Goldman JP, and Morgan Stanley the who's who, and that
[13:53] Speaker 5: that funding round was either complete or near complete, and
[13:56] Speaker 5: that Ben Horowitz, co founder of Anderson Horowitz, would be
[13:59] Speaker 5: joining the board. So now the big question is, as
[14:01] Speaker 5: we reported targeting in November IPO, how quickly does that
[14:05] Speaker 5: come together? Will the market's still be there? And if
[14:07] Speaker 5: you're doing a two billion dollar private raise, IPO is
[14:10] Speaker 5: probably going to be much larger, all right?
[14:12] Speaker 6: Well, apparently a Form Labs, which makes three D printers,
[14:15] Speaker 6: is also in early talks with potential advisors for an IPO.
[14:19] Speaker 6: Talk about that business. The three D printer business is
[14:22] Speaker 6: that A is that like a big is that the
[14:25] Speaker 6: next big thing?
[14:26] Speaker 5: Three D printing was all the rage, and I want
[14:28] Speaker 5: to say in twenty and twenty one, everyone.
[14:30] Speaker 3: My public old son was doing probably still is doing,
[14:34] Speaker 3: and that was.
[14:34] Speaker 5: That was the big push. You just look at three
[14:36] Speaker 5: D Systems trades under the ticker GDD. It hit its
[14:40] Speaker 5: peak at fifty five bucks if you have trades for
[14:42] Speaker 5: less than four right now. So the time had been
[14:45] Speaker 5: much hotter in twenty and twenty one. But form Labs
[14:47] Speaker 5: backed by soft Bank did have bankers come in for
[14:50] Speaker 5: a bake off. We have at least one person saying
[14:53] Speaker 5: they should target a raise of about five hundred million dollars.
[14:56] Speaker 5: The big question comes back to they are profitable and
[14:59] Speaker 5: they are soft bank company, is so what problems are
[15:01] Speaker 5: you solving for?
[15:02] Speaker 3: Why are you going public?
[15:03] Speaker 5: SoftBank has a number of needs and if you're a
[15:06] Speaker 5: three D printer company, could be interesting to just see
[15:09] Speaker 5: if you want to scale. They did announce that they
[15:10] Speaker 5: had annual revenue north of two hundred and fifty million dollars.
[15:14] Speaker 2: Tom from the Upper East Side writes in and asks
[15:16] Speaker 2: for a space X quote, one hundred and thirty three
[15:20] Speaker 2: bucks are getting close back to that IPO price a
[15:22] Speaker 2: one thirty five. What does that mean for kind of
[15:25] Speaker 2: the IPO market in general?
[15:27] Speaker 5: The broader sentiment has become mixed, partly because SpaceX traded blow,
[15:33] Speaker 5: partly because ske Highnix, the largest non US company listing
[15:36] Speaker 5: here with their record fundraising, trays a lot like an EKG.
[15:41] Speaker 5: The big question now is we are expecting Anthropic to
[15:43] Speaker 5: go public September October timeframe. How can the market digest
[15:47] Speaker 5: and write down another you know, large ipo open AI
[15:51] Speaker 5: kind of waiting in the wings potentially early next year.
[15:53] Speaker 5: We're an IPO market that still is hot but very
[15:57] Speaker 5: much can be touch and go, and SpaceX kind of
[15:59] Speaker 5: is emblematic of that. Again one point thirty three now
[16:01] Speaker 5: just south of one thirty five, but popped up like
[16:04] Speaker 5: fifty percent.
[16:05] Speaker 3: Do we have any sense of that?
[16:06] Speaker 2: Insider shares that were eligible to be sold last week?
[16:10] Speaker 2: Do we know what happened with those? Did anybody actually
[16:13] Speaker 2: sell their shares?
[16:14] Speaker 3: Or do we know?
[16:15] Speaker 5: Well, we won't know because normally you would know if
[16:18] Speaker 5: a if an investor owns more than five percent, they
[16:20] Speaker 5: have to file elon Musk is the main one, and
[16:23] Speaker 5: then valor who's taken on their own Share Sale Project
[16:27] Speaker 5: and then Google are the only three according to our
[16:29] Speaker 5: data who would have to file for that. So a
[16:31] Speaker 5: lot of this could be happening behind the scenes. But
[16:33] Speaker 5: when you see a stock rally like it has after
[16:36] Speaker 5: the lock up expired, it's broadly seen as either a
[16:39] Speaker 5: short covering investors were hoping for more of a kind
[16:42] Speaker 5: of dash to the exits, or be just simply insiders
[16:45] Speaker 5: not rushing to sell.
[16:47] Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this.
[16:54] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[16:58] Speaker 1: weekdays at ten am Eastern Apple Coarclay and Android Auto
[17:01] Speaker 1: with the Bloomberg Business app. Listen on demand wherever you
[17:04] Speaker 1: get your podcasts, or watch us live on YouTube.
[17:09] Speaker 3: Or Sure Hathaway.
[17:09] Speaker 2: They had their investor kind of meeting. Yes story, they
[17:13] Speaker 2: reported some earnings over the weekend. They tend to do
[17:16] Speaker 2: for some reason. Matthew Palasoll it's his job to figure
[17:18] Speaker 2: all this stuff out for Sea's Insurance, sent once for
[17:20] Speaker 2: Bloomberg Intelligence. So the headline Matt I'm seeing on the
[17:24] Speaker 2: Bloomberg terminal is new CEO Greg Abel, You're spending some
[17:28] Speaker 2: money here. So what he's doing and how that may
[17:32] Speaker 2: be a little bit different from mister Buffett.
[17:34] Speaker 8: So yeah, he's opening up the checkbook a little bit.
[17:37] Speaker 8: Berkshire still has incredible amounts of cash that is still undeployed,
[17:41] Speaker 8: but we expected them to buy back some shares in
[17:45] Speaker 8: the quarter. There was some disclosures made by Buffett around
[17:48] Speaker 8: his ownership that gave us a clue. We thought it
[17:52] Speaker 8: would be more, but essentially what happened is some of
[17:55] Speaker 8: that was pushed through to the third quarter, so it
[17:58] Speaker 8: was about four and a half billion of buybacks. We
[18:00] Speaker 8: thought it was a wide range, but we thought it
[18:02] Speaker 8: could be anywhere from five to twelve or thinking maybe
[18:04] Speaker 8: it was like eight. Turns out, they did four and
[18:07] Speaker 8: a half in the quarter and then at least another
[18:09] Speaker 8: three in July, so kind of close to what we thought,
[18:12] Speaker 8: but it's just more spread out through the quarters. Couple
[18:15] Speaker 8: with that, Bertie was a net buyer of stocks for
[18:18] Speaker 8: the first time in several years. They might have been
[18:22] Speaker 8: a net buyer of stocks in the first quarter as well,
[18:24] Speaker 8: but what they had done was they unwound a bunch
[18:27] Speaker 8: of positions by one of the former managers investment managers
[18:30] Speaker 8: who had left, so they sold a lot of his
[18:32] Speaker 8: positions and they bought some, but it ended that they
[18:35] Speaker 8: sold more than they bought. But in the second quarter
[18:38] Speaker 8: they bought more than they sold. And there's about twelve
[18:41] Speaker 8: billion dollars worth of stock or stocks that they bought
[18:45] Speaker 8: that we don't know what it is yet. They'll be
[18:47] Speaker 8: a thirteen f next week that will perhaps see Sometimes
[18:50] Speaker 8: they hold things confidential, but if not, we'll get some
[18:55] Speaker 8: more color on what if it was new positions or
[18:58] Speaker 8: added to existing ones.
[19:00] Speaker 6: I mean, they have such a legendary reputation for knowing
[19:03] Speaker 6: where things are headed, especially knowing positions that other people
[19:07] Speaker 6: don't necessarily take. Do we have any idea of what
[19:10] Speaker 6: they're buying or what they're bullish on?
[19:12] Speaker 8: So I could say this. In the first quarter they
[19:14] Speaker 8: started a new position in Delta. Really so yes, and
[19:18] Speaker 8: Buffett has had a history with the airlines, and the
[19:20] Speaker 8: first quarter they did Delta. Their airline related businesses that
[19:24] Speaker 8: they own have been showing some acceleration.
[19:28] Speaker 3: So I don't know.
[19:29] Speaker 8: I can't say if I agree or disagree with them
[19:31] Speaker 8: doing that, but you know, perhaps that's something to think about.
[19:35] Speaker 8: They also made an acquisition. We didn't talk about an
[19:37] Speaker 8: acquisition in the first quarter that will pay in the
[19:40] Speaker 8: third for Tyler home business that is a compliment to
[19:47] Speaker 8: their existing business. So they own a business that builds
[19:50] Speaker 8: manufactured homes. So they build a home and then they
[19:53] Speaker 8: bring it to you. This company they bought six point
[19:56] Speaker 8: eight billion I believe was the number. They build homes
[19:59] Speaker 8: on site, and it's more higher end than the business
[20:02] Speaker 8: they own. So they like to be in these essential businesses.
[20:07] Speaker 8: So home building homes, you know, we're going to need homes,
[20:09] Speaker 8: is home demand. Airlines going to need airline demand. Energy
[20:14] Speaker 8: always energy demand. So those would be maybe three places
[20:17] Speaker 8: that I would say would be potential clues.
[20:19] Speaker 2: And speaking of Delta, I'm just looking at the holder's
[20:21] Speaker 2: page for Delta. They bought a forty million share block.
[20:26] Speaker 2: They're now the number three shareholder in the company, six
[20:28] Speaker 2: percent position, So they got in there in a big way.
[20:31] Speaker 2: I say, if they want to deploy capital, just invest
[20:34] Speaker 2: in AI data centers and stuff. Well, the people spending
[20:37] Speaker 2: tens of billions you know at a clip here.
[20:40] Speaker 8: They also made this year two investments in Google so
[20:44] Speaker 8: or Alphabet that was initiated by Buffett apparently, so he's
[20:51] Speaker 8: still working. He's still the chairman, he's still working with
[20:53] Speaker 8: greg Abel. That position was initiated by Buffett. They bought
[20:57] Speaker 8: Open Market, and then they did as part of Google's
[21:00] Speaker 8: equity raise, they did ten billion dollars in that as well.
[21:04] Speaker 8: So that's a place in the quarter.
[21:05] Speaker 2: Is there any reason to believe greg Abel's going to
[21:07] Speaker 2: purely change the cash return policies? Let's just say the
[21:11] Speaker 2: day after Warren passes, should we expect to see a
[21:15] Speaker 2: policy shift.
[21:16] Speaker 3: Maybe so.
[21:18] Speaker 8: I think Abel is much more Buffett was older, getting old,
[21:26] Speaker 8: stepping away. I don't think he was up for any
[21:29] Speaker 8: material changes. He was never a fan of dividends. Greg
[21:33] Speaker 8: is very much cognizant of keeping the the ethos of
[21:39] Speaker 8: Berkshire alive. So I don't think he wants to do
[21:41] Speaker 8: anything that directly contradicts Buffett immediately. I do think over time, though,
[21:46] Speaker 8: with so much extra capital, maybe a special dividend every
[21:49] Speaker 8: once in a while or something like that. I think
[21:50] Speaker 8: it's possible.
[21:53] Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify,
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