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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)
This is an abridged transcript of the podcast.
SpaceX (SPACE) has raised the pricing for its tender offer to $112 per share amid strong investor demand, valuing the company at nearly $210B.
The earlier pricing that was discussed for the insider shares would've valued SpaceX (SPACE) at around $200B.
The new $210B valuation would be a record for a U.S. private company and would make SpaceX (SPACE) the world's second most valuable startup, behind TikTok owner ByteDance (BDNCE), which has a $268B 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 had selected SpaceX (SPACE) for a contract worth up to $843 million to develop a vehicle that will deorbit the International Space Station.
SpaceX will develop the U.S. deorbit vehicle, and NASA will take ownership after development and operate it throughout its mission.
The United States, 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 (NYSE:BAX) has recalled 2,510 units of its Life2000 portable ventilator systems over damage to the battery charger dongle.
The damage prevents the ventilator's internal battery from charging, leading to either 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, healthcare providers, wholesalers and distributors to ensure patients always have an alternate means of ventilator or oxygen therapy available, inspect the battery charger dongle for damage and replace immediately if damaged.
Patients may continue to use the ventilator system once they confirm no damage to the dongle and the battery is charging appropriately.
Amazon (NASDAQ:AMZN), 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 Temu (NASDAQ:PDD) and Shein.
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 nine 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.
"We are always exploring new ways to work with our selling partners to delight our customers with more selection, lower prices and greater convenience," an Amazon spokesperson said to Seeking Alpha.
PDD Holdings, which owns Temu, dropped 1.26% Wednesday. Meanwhile, Amazon perked up nearly 4%.
More articles on Seeking Alpha:
Amazon joins $2T market cap club, boosted by Rivian stake and AI wave
Morgan Stanley to deploy OpenAI-powered assistant for financial advisors
Catalyst watch:
Notable investor events include AeroVironment's (AVAV) Investor Day. Management is anticipated to provide an overview of the company’s portfolio and examine long-term goals and overall business health.
Nike (NKE) will hold its earnings conference call at 4:15pm. Options trading implies a 7% move for the stock after the earnings update. Nike (NKE) fell 6.9% after its last earnings report. The three stocks that have correlated the tightest with Nike (NKE) on earnings day over the last year are Under Armour (UAA), Dick's Sporting Goods (DKS), and Lululemon (LULU). Starbucks (SBUX) has also seen minor share price moves in the past based on Nike's (NKE) update on the business climate in China.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the red. Crude oil is up 0.7% at $81 per 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
The biggest movers for the day premarket: BlackBerry (NYSE:BB) soared more than 7% after exceeding Q1 revenue expectations, despite a 61% Y/Y decline.
On today’s economic calendar:
8:30 GDP Q1
8:30 Corporate Profits
10:00 Pending Home Sales
Wall Street Breakfast
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