# SpaceX Is Said to Target $75 Billion in IPO at $135 Per Share

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 3 Jun 2026, 24 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/4fe3eeda-5400-46ce-be24-b45e01108ea3/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 Scarlet Fu - George Ferguson, Bloomberg Intelligence Senior Aerospace, Defense, & Airlines Analyst, discusses SpaceX’s IPO. The company aims to sell 555.6 million shares in the offering and is targeting a valuation of at least $1.8 trillion. The IPO is expected to start formal marketing on June 4 and price as early as June 11, with the company making its debut on Nasdaq and Nasdaq Texas under the symbol SPCX. -Gautam Mukunda, Lecturer at Yale School of Management and Bloomberg Opinion contributor, discusses his Opinion column: “C-Suite Throws Governance Out With the Garbage.” Elon Musk will have 85% voting control of SpaceX following its initial public offering and will serve as chairman, CEO, and chief technology officer. Musk will appoint most of the board's directors and cannot be fired, and public investors will waive their rights to jury trials and class actions. -Matt Henriksson, Bloomberg Intelligence Senior Equity Analyst, discusses Medtronic earnings. Medtronic forecast adjusted earnings per share for 2027; the guidance missed the average analyst estimate. According to Bloomberg Intelligence: Medtronic's fiscal 2027 organic-growth guidance appears conservative, even when accounting for the year's extra selling week, as its Cardiac Ablation Solutions business continues to outperform peers. -Mary Ross Gilbert, Bloomberg Intelligence, Senior Equity Analyst, Covering Retail, discusses earnings from Macy's. Macy’s Inc. lifted its sales outlook for the year, citing its focus on growing its luxury business and improving its product assortment. The company raised its annual guidance for comparable sales to as much as 1.2%, and also upped its projections for net sales and adjusted diluted earnings per share. 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
[0:14] Speaker 1: Eastern on Apple, Cocklay and Android Auto with the Bloomberg
[0:17] Speaker 1: Business app. Listen on demand wherever you get your podcasts,
[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: I think the schedule is for the SpaceX IPO roadchhow
[0:28] Speaker 2: to start tomorrow.
[0:29] Speaker 3: Haven't seen a schedule, but that's what I'm hearing that.
[0:32] Speaker 4: Yeah, but this IPO is kind of progressing unusually. Yes,
[0:36] Speaker 4: it's so mammoth and they, you know, the company can
[0:39] Speaker 4: kind of call the shots on everything. And our reporting
[0:41] Speaker 4: shows that SpaceX's offering shares at one hundred and.
[0:44] Speaker 3: Thirty five dollars each.
[0:45] Speaker 4: If it gets that Elon Musk's net worth would be
[0:49] Speaker 4: just shy of a trillion dollars. It put him at
[0:52] Speaker 4: nine hundred and eighty eight billion dollars.
[0:53] Speaker 3: All right, here's the problem.
[0:54] Speaker 2: If you're an investor looking at this ipo, you don't
[0:56] Speaker 2: have any research. There's no research from Wall Street except
[0:59] Speaker 2: for Bloomberg Intelligence. George Ferguson joins us here. He is
[1:03] Speaker 2: a senior aerospace as analyst at Bloomberg Intelligence. He's got
[1:06] Speaker 2: a monster primer research report on SpaceX, So if you
[1:12] Speaker 2: have access to the Bloomberg terminal, you could find it
[1:14] Speaker 2: there under the aerospace dashboard a bi go and it
[1:19] Speaker 2: tells you everything you need to know about this company
[1:21] Speaker 2: and how stacks up relative to the comps and kind
[1:24] Speaker 2: of the market opportunities and all that kind of stuff.
[1:27] Speaker 3: That's the research, and you won't get street research for
[1:29] Speaker 3: a while.
[1:30] Speaker 2: So this is it on Global Wall Street. George joins us. Now, George,
[1:34] Speaker 2: what do you think the message is going to be
[1:36] Speaker 2: from Elon and Company regarding this company? Because boyd, it
[1:41] Speaker 2: is an expansive company with an expansive vision.
[1:45] Speaker 3: What do you think the message is going to be.
[1:47] Speaker 5: Yeah, Look, I think it's all about AI in the
[1:50] Speaker 5: future and the optimal way to deliver it, right, And
[1:53] Speaker 5: so I think that the space business, the lift business,
[1:57] Speaker 5: really supporting that satellite constellation Stark, which is all about
[2:01] Speaker 5: communications between the Earth surface and low Earth orbit. I
[2:05] Speaker 5: think that's interesting, but it's not I think a huge
[2:09] Speaker 5: value proposition. Right, you're trying to you'll be competing with
[2:12] Speaker 5: terrestrial providers that I think can do much better in
[2:16] Speaker 5: populated centers. So I think the big, big big sort
[2:20] Speaker 5: of opportunity here would be if data centers are going
[2:23] Speaker 5: to work in space, and AI is a big thing
[2:26] Speaker 5: in the world, You're going to be able to from
[2:28] Speaker 5: the surface of the Earth shoot your data request into
[2:31] Speaker 5: space and data centers in space will work out all
[2:35] Speaker 5: those things you need to know via AI and get
[2:37] Speaker 5: it back to you. I think you're betting on that
[2:39] Speaker 5: in the long run if you're buying into this into
[2:43] Speaker 5: the space X IPO.
[2:44] Speaker 4: George, we talk about how your title is the aerospace,
[2:46] Speaker 4: defense and airlines analysts. What kind of company is SpaceX
[2:50] Speaker 4: now is what is the comparable company? What group should
[2:55] Speaker 4: be considered a peer to?
[2:57] Speaker 2: Yeah?
[2:57] Speaker 5: So I mean when we built our value, shouldn't thought
[3:00] Speaker 5: about what was potentially, you know, plausible given current markets.
[3:07] Speaker 5: We really had to do with some of the parts, right,
[3:09] Speaker 5: So I went out and looked at the rocket business
[3:11] Speaker 5: against those peers like rocket Lab. My colleagues John Butler
[3:15] Speaker 5: went out and looked at Starlink based on some peers
[3:19] Speaker 5: as well, and then Man Deep Sing did it based
[3:22] Speaker 5: on AI. The biggest value that actually came out of
[3:25] Speaker 5: Rocket Lab. So I came out of the rocket business,
[3:28] Speaker 5: which is a little bit surprising to me. But I
[3:30] Speaker 5: still think sort of the you know, the long term
[3:33] Speaker 5: play here is the data center in space and AI.
[3:37] Speaker 5: So but we had we had to combine again analysis
[3:40] Speaker 5: and all those industries to really come up with what
[3:43] Speaker 5: we thought maybe a plausible valuation, albeit extremely lofty valuation,
[3:48] Speaker 5: would be.
[3:50] Speaker 3: Is there an expectation, George, that.
[3:53] Speaker 2: Elon may look to just kind of consolidate all of
[3:56] Speaker 2: his holdings within SpaceX, i e.
[3:59] Speaker 3: Roll up Tesla into SpaceX.
[4:00] Speaker 2: Is that something that when you talk to investors that
[4:03] Speaker 2: they think is possible?
[4:04] Speaker 3: Likely?
[4:06] Speaker 5: I hear noise like that. I mean, look, I think,
[4:09] Speaker 5: you know, when I look at the current SpaceX I
[4:13] Speaker 5: see the reason to put these three companies together again.
[4:16] Speaker 5: Sort of, the launch business gets your satellite constellations up
[4:20] Speaker 5: in the air. He's got the largest satellite constellations. Starlink
[4:23] Speaker 5: by far is the largest of any satellite constellation lower
[4:27] Speaker 5: with orbit. So the launch business gets those satellites up there,
[4:31] Speaker 5: it serves Starlink. And then again as AI comes in,
[4:35] Speaker 5: if you're going to put the data centers in space,
[4:37] Speaker 5: you've got to drive down the cost of drive of
[4:40] Speaker 5: getting things into orbit. And again your launch business matters,
[4:43] Speaker 5: and you know, you obviously need communications to get to it.
[4:46] Speaker 5: So I see how all three of those fit together.
[4:49] Speaker 5: I don't see how Tesla fits inside that mold. Now, look,
[4:53] Speaker 5: I think these all three of these are together because
[4:56] Speaker 5: AI needs a fair amount of financing. Right now, we're
[5:01] Speaker 5: seeing that all around the marketplace, right AI companies are
[5:03] Speaker 5: looking to raise funds to build data centers, build out
[5:07] Speaker 5: their models, make sure they're super competitive. So so look,
[5:11] Speaker 5: I think Elon could do. You could see him do
[5:14] Speaker 5: things for financing reasons that may not make sense from
[5:20] Speaker 5: you know, a company level reason. Right now, I see
[5:22] Speaker 5: the reason these three are together because they seem to
[5:25] Speaker 5: be supporting each other.
[5:26] Speaker 4: So, George, when SpaceX is a publicly traded company listed
[5:30] Speaker 4: on the NASAC under the CHICK or spc X and
[5:32] Speaker 4: it needs more money to fund its AI build out,
[5:35] Speaker 4: how's it going to get that money?
[5:36] Speaker 3: Is it going to sell more stock? Is it going
[5:38] Speaker 3: to go to the debt market? What are you thinking?
[5:41] Speaker 5: Well, I mean, right now, they're not selling all the
[5:43] Speaker 5: all the stock, you know they're they're not. They're not
[5:46] Speaker 5: listing sort of the full value this company on the exchanges.
[5:50] Speaker 2: Uh.
[5:51] Speaker 5: But but so so my sense is they probably could
[5:55] Speaker 5: sell more stock to raise money. Uh, and then I
[5:58] Speaker 5: think it's just, you know, it opened up the ability
[6:01] Speaker 5: to go into public markets and take public debt and
[6:05] Speaker 5: sort of I guess maybe get out of the venture
[6:07] Speaker 5: capital world a little bit. But look, I mean, I
[6:13] Speaker 5: guess we'll see. It still seems like a really hard
[6:16] Speaker 5: It's not a company that you're going to bank, right
[6:18] Speaker 5: the major banks of the world are going to show
[6:20] Speaker 5: up and say, we like the financi of the metrics
[6:22] Speaker 5: just aren't there for that some very specuative you know,
[6:26] Speaker 5: bond investors could potentially get involved. It still feels like
[6:30] Speaker 5: largely and you know, an equity fundraising kind of story
[6:34] Speaker 5: to make.
[6:35] Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
[6:42] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[6:45] Speaker 1: weekdays at ten am Eastern on Apple, cock Play and
[6:48] Speaker 1: Android Auto with the Bloomberg Business app. Listen on demand
[6:51] Speaker 1: wherever you get your podcasts, or watch us live on YouTube.
[6:56] Speaker 4: We continue to look for details on this gigantic IPO
[6:59] Speaker 4: coming out from SpaceX. The latest reporting indicates that the
[7:03] Speaker 4: company plans to offer shares at one hundred and thirty
[7:05] Speaker 4: five dollars a piece that wants to raise seventy five
[7:08] Speaker 4: billion dollars in its IPO. And you know the fact
[7:11] Speaker 4: that it's kind of pinpointed a price already makes it
[7:14] Speaker 4: different than your typical IPO where companies announce a price
[7:18] Speaker 4: range as they get ready to market the shares during
[7:21] Speaker 4: these investor road shows. Let's bring in Godamakunda. He is
[7:24] Speaker 4: a lecturer at the Yale School of Management. He's also
[7:26] Speaker 4: a contributor to Bloomberg Opinion, and he's written about governance
[7:30] Speaker 4: at SpaceX, or perhaps lack of governance at SpaceX, and
[7:33] Speaker 4: got him. I want to start with this idea that
[7:36] Speaker 4: SpaceX's IPO is shaping them to be kind of a
[7:38] Speaker 4: departure from the norm. And you say that that's the
[7:41] Speaker 4: case with its governance as well, what have you spotted
[7:44] Speaker 4: in the paperwork that is filed that really shows its
[7:46] Speaker 4: defying convention.
[7:49] Speaker 6: They basically surrounded Elon Musk with rights and privileges and
[7:53] Speaker 6: special voting shares and rules and things like that that
[7:56] Speaker 6: make him. You know, the phrase I used in the
[7:57] Speaker 6: column was he's now the god king of like he
[8:00] Speaker 6: can never be fired. He has total control. No one
[8:03] Speaker 6: the organization has any ability to put a brake on him,
[8:05] Speaker 6: no shareholders the anability to put a break on him.
[8:09] Speaker 6: A lot of CEOs have been doing a lot to
[8:11] Speaker 6: concentrate power in their own hands, but I don't think
[8:13] Speaker 6: I've ever seen anything quite.
[8:14] Speaker 3: Like this Gotham.
[8:16] Speaker 2: It kind of makes sense, my guess, if I were
[8:18] Speaker 2: an investor taking a meeting here for this IPL, all
[8:21] Speaker 2: I want to hear is from Elon Musk and what
[8:23] Speaker 2: his vision is and how he thinks he can get
[8:25] Speaker 2: there and get chief profitability.
[8:26] Speaker 3: I don't care what the CFO says, I don't care
[8:28] Speaker 3: what anybody else says.
[8:28] Speaker 2: I just need to dial in on Elon because it's
[8:31] Speaker 2: a bet on Elon.
[8:32] Speaker 3: Maybe that's not reflected in the governance. No, I think
[8:35] Speaker 3: that's right.
[8:36] Speaker 6: And look, if you are, you know, a major institutional
[8:39] Speaker 6: investor and you decide to go in on SpaceX, you
[8:41] Speaker 6: do it because you are bought in on the story
[8:43] Speaker 6: of Elon Musk, and you might have lots of reasons
[8:45] Speaker 6: to buy it on that.
[8:46] Speaker 3: You might have made a lot of money on him.
[8:48] Speaker 6: There are two problems with that logic, and it's important
[8:51] Speaker 6: to help to highlight both of them. The first one
[8:54] Speaker 6: is a lot of the people who are investing in
[8:55] Speaker 6: SpaceX are not people who are buying into into the
[8:58] Speaker 6: logic the story of Elon Musk, their index fund people
[9:01] Speaker 6: who hold index funds, people in their four O one
[9:03] Speaker 6: ks who are just going in because it's in the index.
[9:06] Speaker 6: And because all of these institutions from you know, including
[9:09] Speaker 6: NASDAK that are supposed to put boundaries and guardrails and
[9:13] Speaker 6: protect instant investors like that, investors who because they're in
[9:17] Speaker 6: index funds literally cannot protect themselves. All of them have
[9:20] Speaker 6: fallen down on the job and decided that they're not
[9:22] Speaker 6: going to do that. So that's the first problem. But
[9:24] Speaker 6: the second problem, which it is just as important, which is,
[9:27] Speaker 6: however brilliant you think Elon Musk is, what, even if
[9:31] Speaker 6: you think he is the greatest business person who's ever lived,
[9:33] Speaker 6: there's no such thing as as a person who is
[9:36] Speaker 6: so brilliant they don't get better when other people test
[9:39] Speaker 6: and push their ideas. And this is a structure that's
[9:42] Speaker 6: designed to make sure that no one has the ability
[9:45] Speaker 6: to force Elon Musk to be the best version of
[9:47] Speaker 6: himself and not the worst one.
[9:49] Speaker 4: Well, I mean, SpaceX is not unusual in that it's
[9:52] Speaker 4: giving its some you know, leader of free hand you
[9:55] Speaker 4: point this out that Google's two thousand and four IPO
[9:58] Speaker 4: kind of codify this dual class shares into the tech
[10:02] Speaker 4: industry meta or then Facebook did something similar, So in
[10:05] Speaker 4: that way, this is a tried and true formula for
[10:08] Speaker 4: big tech companies.
[10:11] Speaker 6: Yes, and no, there's a great phrase in medicine that's
[10:13] Speaker 6: worth remembering here, the dose makes the poison. A lot
[10:17] Speaker 6: of companies did this. They created these dual class structures.
[10:21] Speaker 6: They did a lot of things because the financial markets
[10:24] Speaker 6: and sort of pressure from in Wall Street had made
[10:27] Speaker 6: it impossible for them to manage companies for the long term.
[10:30] Speaker 6: They realized that that was toxic. They looked, say at Boeing,
[10:33] Speaker 6: and said, we don't want to be Boeing, We don't
[10:35] Speaker 6: want to be ge We want to be a company
[10:37] Speaker 6: that actually creates value over the long term. And so
[10:40] Speaker 6: they created these structures to allow that to happen. That
[10:44] Speaker 6: was the problem. We have now taken this to the
[10:46] Speaker 6: point where the solution looks in a very great sense
[10:49] Speaker 6: to be much worse than the problem.
[10:51] Speaker 3: So thirty seconds left, Baltham, are you the index issue?
[10:56] Speaker 3: How serious is that for investors? Do you think?
[10:59] Speaker 6: I think it's in the So in this particular stock.
[11:02] Speaker 6: It is not devastating, although it's not good. What it's
[11:05] Speaker 6: those very serious our investors, is it is an assault
[11:08] Speaker 6: on the integrity of the capital markets, the guarantee that
[11:10] Speaker 6: you will be treated fairly, that this is not just
[11:13] Speaker 6: a way for insiders to extract money from index investors
[11:17] Speaker 6: and from people from people or not who are not,
[11:19] Speaker 6: you know, sort of asphiscated as they are right now.
[11:22] Speaker 6: This is structured as a transfer of wealth from like
[11:25] Speaker 6: investors to early stage space ex holders. That's wrong, and
[11:29] Speaker 6: it's that it is. It is really a frontal assault
[11:32] Speaker 6: on the thing one of the pillars of American capitalism
[11:36] Speaker 6: that has made it so successful.
[11:39] Speaker 3: Stay with us.
[11:40] Speaker 4: More from Bloomberg Intelligence coming up after this.
[11:44] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[11:48] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[11:51] Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
[11:54] Speaker 1: you get your podcasts, or watch us live on YouTube.
[11:58] Speaker 2: Let me take you all the way back to this
[12:00] Speaker 2: summer of nineteen ninety one. I was in the Chase
[12:02] Speaker 2: Manhattan Bank Summer that credit training program, and we were
[12:06] Speaker 2: assigned a company do a full credit report on and
[12:08] Speaker 2: do a presentation. That company for me was Medtronic medical
[12:13] Speaker 2: device maker. So I followed the company kind of ever since,
[12:15] Speaker 2: because when you put in a ton of work on
[12:17] Speaker 2: a company, it tends to stick in your brain. Other
[12:19] Speaker 2: folks cover the stock as well. They reported some numbers.
[12:21] Speaker 2: I thought that looked pretty decent to me. The stock
[12:23] Speaker 2: is up five percent today, but it's down about nineteen
[12:25] Speaker 2: percent year to date. This is one of the leading
[12:27] Speaker 2: medical device makers out there, so let's pay attention to
[12:29] Speaker 2: what's happening there. Matt Hendrickson does. He's a senior ecadanas
[12:32] Speaker 2: Bloomberg Intelligence, joining us live here in our studio.
[12:35] Speaker 3: Here, Matt talk to us about met Metronic.
[12:37] Speaker 2: What do you hear from them in their earnings releasing?
[12:39] Speaker 7: Yeah, I mean so, going in ahead of the call,
[12:41] Speaker 7: the question was for one of their key technologies, whether
[12:45] Speaker 7: it was a market slowdown or a competitive dynamic. The
[12:48] Speaker 7: previous company reporting, Boston Scientific talked about slow down, turned
[12:53] Speaker 7: into what was going to happen? When Metronic reported, they
[12:56] Speaker 7: reported very positive one hundred and twenty four percent growth
[12:59] Speaker 7: in this one secondment.
[13:02] Speaker 8: Eased a lot of concern ahead of the call. That's
[13:04] Speaker 8: why you're.
[13:04] Speaker 7: Seeing the bump this morning, right, and so turning into
[13:07] Speaker 7: their fiscal twenty twenty seven guidance shows signs of upside
[13:11] Speaker 7: in the future because of that momentum in that segment.
[13:15] Speaker 2: A medical device maker like Metronic, how much how much
[13:18] Speaker 2: are they impacted by healthcare policy out there? It seems
[13:22] Speaker 2: like it's such a a You guys have to figure
[13:23] Speaker 2: out what the earning is going to be and all
[13:25] Speaker 2: that kind of stuff, and Josto have to have an
[13:26] Speaker 2: opinion on it and of how policy is gonna unveil
[13:29] Speaker 2: over the next several years.
[13:30] Speaker 8: Yeah, it's it's it's tough. It's always a labyrinth.
[13:33] Speaker 7: It's a black box what's going on in the CMS
[13:35] Speaker 7: and the FBA. Medtech is a little bit less impacted
[13:42] Speaker 7: by it. You're gonna have procedure volumes, you have the
[13:44] Speaker 7: aging demographic, They're gonna have me procedures done. They're gonna
[13:47] Speaker 7: have heart surgery done, things like that. Recently, it's more
[13:51] Speaker 7: been the g LPs and so I remember two three
[13:55] Speaker 7: years ago when glp's first came out, everyone thought medtech
[13:58] Speaker 7: was dead. They were able totain procedure volumes. Now, with
[14:01] Speaker 7: the rise of oral glps, that is kind of coming back.
[14:04] Speaker 3: So what's the thinking there, what's the thesis.
[14:07] Speaker 7: Basically, it's easier to take a GLP orally as a
[14:11] Speaker 7: pill versus injecting.
[14:12] Speaker 3: Yourself for all the fewer knee replaces.
[14:15] Speaker 7: There's there's there's data out there that's showing that it's
[14:18] Speaker 7: it aids with cardiovascular cases, things like you know, healthier knees,
[14:24] Speaker 7: things like that, So less procedures there. What we saw
[14:28] Speaker 7: in twenty twenty four twenty twenty five is that cases
[14:30] Speaker 7: were steady throughout the whole and if not growing interesting
[14:34] Speaker 7: but once again we're getting into that new case of
[14:36] Speaker 7: uncertainty going on.
[14:38] Speaker 2: I was talking to Buddy Mind. He's that the doctor
[14:40] Speaker 2: that fixes his knees and ankles and stuff like that.
[14:42] Speaker 2: It's just pick aball has been a boon to his business.
[14:45] Speaker 2: His office is packed with people my age coming in
[14:48] Speaker 2: with torn up knees and ankles because they're playing pickleball.
[14:51] Speaker 8: You're you're not the first one to say that, because
[14:53] Speaker 8: I mean, think about it.
[14:54] Speaker 7: They're just so they're so eager to get out there
[14:56] Speaker 7: and they forget that they're in there's sixties and seventies
[14:59] Speaker 7: and next thing you know, crack. And then got to
[15:02] Speaker 7: get to the surgeon.
[15:03] Speaker 2: So who does Metronic compete against in their business?
[15:07] Speaker 7: So well, Metronics is very diversified, and so we can
[15:09] Speaker 7: talk about the cardiovascular space, the spine space, neuroscience for
[15:14] Speaker 7: particular this case pulse field ablation, which was not there
[15:18] Speaker 7: in nineteen ninety one. It's a new technology for cardiac ablation.
[15:23] Speaker 7: The two main competitors is Boston Scientific and Metronic. And
[15:27] Speaker 7: it turned into that question when Boston reported growth numbers
[15:31] Speaker 7: that were lower than expected, what was going to happen
[15:34] Speaker 7: to Medtronic? And so today was a kind of a
[15:36] Speaker 7: clear that hurdle at.
[15:37] Speaker 2: Least did these medical device companies like Metronic? Are they
[15:42] Speaker 2: aggressive on the acquisition front? Is that a growth driver
[15:45] Speaker 2: for them? Because I always joke with Sam Fazzelli his
[15:47] Speaker 2: pharma companies, every Monday morning, we wake up, there's another
[15:49] Speaker 2: farm of deal.
[15:50] Speaker 7: It's a it's a huge way for them to drive
[15:52] Speaker 7: that innovation that basically they acquire the innovation to be
[15:55] Speaker 7: able to maintain their revenue growth trajectory in the future.
[16:00] Speaker 8: So it's huge.
[16:01] Speaker 7: The difference that we're starting to see in medtech side
[16:04] Speaker 7: versus the pharmacide is that they're targeting the private companies
[16:08] Speaker 7: earlier in their series financing before they become publicly traded.
[16:13] Speaker 7: While Sam was probably talking about a lot of the
[16:15] Speaker 7: publicly traded companies that have been acquired over the last
[16:18] Speaker 7: few months.
[16:19] Speaker 2: So what's the call on Medtronic here? I'm just looking
[16:23] Speaker 2: at the an R function on the Bloomberg terminal. It's
[16:26] Speaker 2: kind of streets kind of split here. I got seventeen
[16:28] Speaker 2: buys but fourteen holds here. So what's kind of the
[16:32] Speaker 2: Is there something Streets looking for to say, Okay, I
[16:34] Speaker 2: can jump on board here.
[16:35] Speaker 8: I think people are waiting for.
[16:37] Speaker 7: It's always been an execution story for Medtronic, and it's
[16:39] Speaker 7: always been kind of Lucy pulling the football from you,
[16:42] Speaker 7: and they would have one or two great quarters. They
[16:44] Speaker 7: always talked about the great innovation, and the innovation always
[16:47] Speaker 7: has been promising for you know, whether it's pulse field ablation.
[16:51] Speaker 7: There's a few other ones that we can go into
[16:53] Speaker 7: the nitty gritties of it at another time. But all
[16:55] Speaker 7: this technology that is disrupting the standard of care, but
[16:58] Speaker 7: for whatever reason, the sales team or just the execution
[17:01] Speaker 7: wasn't there, So they would always have to revise something
[17:03] Speaker 7: after the third quarter, and then things would then retrace
[17:07] Speaker 7: from those kind of momentum that they had earlier. It's
[17:11] Speaker 7: kind of so basically there is that a little bit
[17:13] Speaker 7: of I don't want the some that I don't want
[17:16] Speaker 7: to try to kick the football for Lucy just to
[17:17] Speaker 7: pull it from me.
[17:18] Speaker 3: Yep.
[17:19] Speaker 8: And so they've had a bunch of good quarters.
[17:21] Speaker 7: It's going into you know, they issued fiscal twenty twenty
[17:24] Speaker 7: seven guidance that's showing that momentum from fiscal twenty twenty six.
[17:29] Speaker 7: A lot of it has to do with the Polsfield
[17:31] Speaker 7: ablation segment of their business that's showing some strong momentum.
[17:36] Speaker 7: So we'll see what happens come August with the fiscal
[17:38] Speaker 7: first quarter calls coming out.
[17:40] Speaker 4: Stay with us more from Bloomberg Intelligence coming up after this.
[17:47] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[17:51] Speaker 1: weekdays at ten am Eastern on Apple Coarclay, and Android
[17:54] Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
[17:58] Speaker 1: you get your podcasts, or what us Live on YouTube.
[18:02] Speaker 2: In terms of earnings, Macy's reported some pretty good numbers.
[18:05] Speaker 2: Stocks trading up here today one and a half percent.
[18:07] Speaker 2: Let's break it down with Mary Ross Gilbert. She covers
[18:09] Speaker 2: the retailers for Bloomberg Intelligence. She's based out there in
[18:13] Speaker 2: Los Angeles.
[18:15] Speaker 3: So, Mary, what do we hear from Macy's.
[18:18] Speaker 9: Well, what you're hearing from Macy's, Paul, is that they're executing.
[18:22] Speaker 9: That's what you're hearing. So what we saw on the quarter,
[18:25] Speaker 9: their comps were up three percent. We had very strong
[18:28] Speaker 9: gains from Bloomingdale's being up ten percent. And what the
[18:32] Speaker 9: company is doing is they're bringing in a lot more
[18:35] Speaker 9: relevant brands. First of all, they had already been executing
[18:38] Speaker 9: it Bloomingdale's, but they're even taking it to a next level.
[18:42] Speaker 9: So I think I mentioned before last quarter how they
[18:45] Speaker 9: brought in our local store here in Westfield Century City.
[18:49] Speaker 9: They brought in a Chanelle shoe boutique that was brought
[18:53] Speaker 9: in over a year ago, and then just this year
[18:56] Speaker 9: they brought in Christian Lubaton. Well in New York City
[19:00] Speaker 9: in the fifty ninth Strength Street location, they have a
[19:03] Speaker 9: praduct shoe boutique. So what they're doing is just continuing
[19:07] Speaker 9: to elevate. This is also happening on the macy side too,
[19:10] Speaker 9: where they're really climbing up in terms of the brands
[19:14] Speaker 9: that they're bringing in. So some of the brands that
[19:16] Speaker 9: they mentioned include Mango is one of them. They're also
[19:22] Speaker 9: doing a whole activation for World Cup with Nike Audidos
[19:27] Speaker 9: and also Puma. So very exciting things that the company
[19:32] Speaker 9: is doing. And if you look online at their website,
[19:35] Speaker 9: it has completely changed. It's a lot more engaging, it's
[19:39] Speaker 9: a lot more exciting. So they're really and there's more
[19:43] Speaker 9: to come. So even with the nice game that we
[19:46] Speaker 9: saw this quarter, I think we're going to continue to
[19:49] Speaker 9: see that momentum build.
[19:50] Speaker 4: And Jessa heads up to everyone that Macy COEO Tony
[19:53] Speaker 4: Springwomb will be on Bloomberg Television today live at four
[19:56] Speaker 4: thirty pm speaking with Romaine Bostik, so we can get
[20:00] Speaker 4: more detail from the CEO. And I bring that up
[20:03] Speaker 4: because I feel like Macy's, the company, Bloomingdale's in particular,
[20:08] Speaker 4: was definitely a winner here. Following the bankruptcy filing of
[20:11] Speaker 4: SAX Global Enterprises, the parent company of SAX Fifth Avenue,
[20:15] Speaker 4: which has had to shut down a lot of stores.
[20:18] Speaker 8: Is that the case?
[20:20] Speaker 9: It absolutely is the case, Scarlet. We've been noticing this
[20:23] Speaker 9: and it actually really started last year and we saw
[20:27] Speaker 9: the sharp acceleration in Bloomingdale's sales ahead of the bankruptcy
[20:31] Speaker 9: actually because of the miss execution that was going on
[20:36] Speaker 9: when they acquired Nieman Marcus, and Nieman Marcus, which had
[20:39] Speaker 9: been showing positive sales trend, turned sharply negative following that acquisition.
[20:45] Speaker 9: So you can see that the consolidated chain, they weren't
[20:48] Speaker 9: paying vendors, they weren't treating their customers. While not accepting returns,
[20:53] Speaker 9: they couldn't get a lot of these customers who were
[20:56] Speaker 9: frustrated couldn't get in touch with anyone. So meanwhile, while
[21:00] Speaker 9: Bloomingdale's was really elevating their execution, they're taking share essentially.
[21:06] Speaker 9: And so I think we're continuing to see that because
[21:08] Speaker 9: even if we look at the transaction data, we can
[21:11] Speaker 9: see that the sales are still down double digits at
[21:15] Speaker 9: the consolidated Nieman Marcus group. So so the SAX global When.
[21:21] Speaker 2: You talk to your retailers, are they trying to go
[21:24] Speaker 2: just generally more upscale. I'm thinking about this case case
[21:29] Speaker 2: shaped economy, and the parts of the case seem to
[21:32] Speaker 2: be getting more and more pronounced. So if you're Macy's,
[21:35] Speaker 2: maybe on the margin I go a little higher end.
[21:37] Speaker 2: That brings some brands into maybe I wouldn't have had
[21:39] Speaker 2: them to pass.
[21:39] Speaker 3: Are you hearing that?
[21:41] Speaker 9: We're absolutely hearing that to a certain extent, though, Paul,
[21:45] Speaker 9: you raise a valid question. It's also important that you
[21:49] Speaker 9: have those entry brands, and you saw this with Cohle's.
[21:52] Speaker 9: That's really where their focus is because their consumer is
[21:56] Speaker 9: really that lower income that's our core consumer. Macy's will say,
[22:00] Speaker 9: our core consumer is really middle income to upper income,
[22:05] Speaker 9: and so they have to make sure they have sort
[22:08] Speaker 9: of those entry levels. So it's called really the good, better,
[22:12] Speaker 9: and best classifications. But yes, they're really pushing their merchants
[22:18] Speaker 9: to focus on going up the best chain because they're
[22:22] Speaker 9: finding that having newness.
[22:25] Speaker 3: Will drive conversion.
[22:27] Speaker 9: So bringing in new, fresh, exciting brands and classifications are
[22:32] Speaker 9: really driving that that incremental sales gain. And their average
[22:38] Speaker 9: price was up eight point three percent, so you had
[22:41] Speaker 9: at the Bloomingdale side it was up about nine to
[22:43] Speaker 9: ten percent, but Macy's the name plate was up mid
[22:47] Speaker 9: single digits, and where they saw strength and beauty once
[22:50] Speaker 9: again driven by a lot of newness across skincare and
[22:54] Speaker 9: fragrance driving those gains there. So that really does make
[22:57] Speaker 9: a difference, but it is important to have that good, better,
[23:00] Speaker 9: and best classifications, not just in private labels. So they're
[23:05] Speaker 9: bringing in some of these entry level brands you know,
[23:08] Speaker 9: or extending those like a Sam Edelman for example.
[23:12] Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify,
[23:17] Speaker 1: and anywhere else you get your podcasts. Listen live each
[23:20] Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com,
[23:24] Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app.
[23:28] Speaker 1: You can also watch us live every weekday on YouTube
[23:32] Speaker 1: and always on the Bloomberg terminal

Shows are listed from Apple Podcasts' charts and directory, and Podcast Index where it is used. Every show and episode belongs to its publisher and plays from the publisher's own feed; this site hosts none of them.