‘SO IMPORTANT’: SpaceX investors need to know about this...

THE REVENUE COMING IN. THE CLOSING BELL WITH FIVE MINUTES TO GO EVERYBODY. WE'RE AT A TRIFECTA FOR RECORDS. THE DOW, THE S&P 500, THE E RUSL 2000 ON TRACK, ALL OF THEM, FOR RECORD CLOSES. RIGHT NOW THE DOW IS UP 951 SO WE'RE OFF THE SESSION HIGHS, STILL A RECORD, S&P UP 139 OFF SESSION HIGHS STILL A RECORD. NOW, HERE WE GO. WE'VE GOT JUST SIX MINUTES TO GO UNTIL WE GET SPACEX'S FIRST EARNINGS REPORT WITH RECORD SHATTERING IPO. WE'RE MOMENTS AWAY FROM THAT. CEO ELON MUSK GOING TO BE FACING TOUGH QUESTIONS ON THAT EARNINGS CALL. SPACEX SHARES HAVE PLUNGED 24% SINCE THE JUNE IPO, ERASING NEARLY HALF A TRILLION DOLLARS IN MARKET VALUE. NOW, ANALYSTS ARE EXPECTING A LOSS OF $0.26 A SHARE, A LOSS, BUT CAN MUSK CONVINCE WALL STREET THE COMPANY CAN ESCAPE VELOCITY ONCE AGAIN? WHAT ARE THE QUESTIONS ON THAT CALL? LET'S BRING IN CAPITAL MANAGEMENT PORTFOLIO MANAGER JEDEDIAH ELLERBROKE AND DO YOU KNOW WHAT, JED? WHAT I'VE BEEN READING A LOT OF THE COMMENTARY GOING INTO THIS CALL IS IT'S GOING TO BE ABOUT THIS PLANS FOR SPACE. HE'S TALKING ABOUT BUILDING THESE DATA CENTERS IN SPACE. WHY IS THAT INTERESTING? BECAUSE WE'RE GETTING PUSHBACK ON EARTH ABOBOUT THESE DATA CENTERS, NOT IN MY BACKYARD. YOUR THOUGHTS? >> YEAH, THE ABILITY OF THE STAR SHIP ROCKET IS SO IMPORTANT FOR THE BROADER INVESTMENT THESIS FOR SPACEX INVESTORS AND IT'S IMPORTANT FOR THE STARLINK BUSINESS TO LAUNCH AS MANY SATELLITES QUICKLY INTO ORBIT, TO FUEL THAT, THE OPERATIONS OF THAT SEGMENT, AND THEN YEAH, ORBITAL DATA CENTER IS HIGHLY RELIABLE ON RAPID REUSABILITY OF THOSE STAR SHIP ROCKETS SO THAT'S KIND OF THE CORE TO THE INVESTMENT THESIS FOR SPACEX AND INVESTORS WILL BE, I THINK, MORE EXCITED AND INTERESTED IN TALKING ABOUT THAT ON THIS FIRST EARNINGS CALL THAN THE NUMBERS THEMSELVES. CHERYL: WHAT DO YOU MAKE ABOUT THE LOCKUP BECAUSE 20% OF INSIDER SHARES UNLOCK ON THE SIXTH AND SO DOES THAT CREATE MORE VOLATILITY IN THE STOCK? WHAT DO YOU THINK HAPPENS THEN? >> YEAH, I THINK THAT THE UPCOMING LOCK-UPS AND ALSO THE HUGE NATURE OF THE IPO JUST A COUPLE OF MONTHS AGO LEAVES INVESTORS UNCOMFORTABLE AND CONCERNED. THAT AMOUNT OF NEW SUPPLY OF SHARES JUST MAKES ANY BUYER HESITANT SO THISIS FIRST LOCK-U, WHICH WILL HAPPEN HERE AT THE END OF THIS WEEK, ABOUT 20% OF SHARES I THINK IS GOING TO PERHAPS BE A CATALYST FOR THE STOCK IF EARNINGS AND THE COMMENTARY ARE POSITIVE HERE TONIGHT. CHERYL: LET'S GET TO YOUR PICKS BEFORE WE CLOSE OUT THE SHOW. YOUR FIRST ONE IS APOLLO. THEY ACTUALLY CAME OUT WITH EARNINGS BUT THEY MISSED ON EARNINGS. THEY MISSED THE ESTIMATES AND ARE SAYING THERE'S WEAKNESS IN THE PRIVATE EQUITY BUSINESS. DOES THAT SURPRISE YOU? >> NO, IT DIDN'T. APOLLO'S PRIMARY BUSINESS ABOUT 80% OF THE REVENUES S COMES FROM CREDIT ORIGINATION SO PRIVATE EQUITY IS SMALLER FOR APOLLO THAN IT IS FOR , SAY, CARLYLE OR BLACKSTONE. IF YOU LOOK AT APOLLO'S CORE BUSINESS THAT CREDIT ORIGINATION BUSINESS, THINGS ARE GOING REALLY WELL. FUNDRAISING IS STRONG AND DEMAND FOR CREDIT IN THE U.S. ECONOMY IS GROWING FAIRLY RAPIDLY, SO THIS IS A REALLY POSITIVE OPERATING ENVIRONMENT FOR APOLLO AND I THINK THAT'S WHY YOU SEE THE STOCK DOING WELL HERE TODAY. CHERYL: YOU LIKE NVIDIA AND IT'S INTERESTING BECAUSE THIS TIES BACK TO SPACEX BECAUSE I WAS LOOKING AT SOME HEADLINES HERE ON SPACEX AND ACTUALLY, THEY ARE JUST INNING A DEAL WITH H THEIR PARTNERS WITH NVIDIA SPACEX IS DESIGNING THE STAR MIND A-11 I BELIEVE SATELLITE COMPUTE PAY LOAD BUT NVIDIA IS ONE OF YOUR PICKS. >> YEAH, WE THINK NVIDIA'S BUSINESS IS GROWING AT A REALLY INCREDIBLE RATE. INVESTORS HAVE BEEN SO EXCITED REALLY YEAR-TO-DATE TO INVEST IN THESE AREAS OF SHORTAGE WITHIN THE DATA CENTER CAPEX BENEFICIARY GROUP. NVIDIA ISN'T ONE OF THOSE. NVIDIA IS NOT AN AMD, OR A MICRON THAT'S BENEFITING FROM SHORTAGES BUT THEY JUST HAVE PERSISTENTLY STRONG DEMAND AND THEIR INNOVATION IS WHAT'S MADE THIS ACCELERATED COMPUTING CYCLE POSSIBLE. WE EXPECT REALLY STRONG REVENUE AND EARNINGS GROWTH FROM THEM WHEN THEY REPORT IN THREE WEEKS AND WE THINK THAT EARNINGS ESTIMATES FOR FUTURE QUARTERS AND YEARS ARE GOING TO GO UP PROBABLY DOUBLE-DIGITS ON THE BACK OF THAT EARNINGS REPORT AND YOU PUT ALL THAT TOGETHER COMBINED WITH A STOCK