Stock that has existed for exactly two weeks moves in any direction
“The people who bought this IPO are going to have their lives changed forever.”
Gonna be funny when every rocket lauch failure tanks the stock, they should have stayed private lmfao
stayed private, and never merged with xAI/Twitter
What a facade this “corporation” shit is. So the “stake holders” had literally the #1 space company in the world and agreed to merge it with two failing products in their own respective niches?
Pretty much yep. Elon has a controlling interest in SpaceX so I think that was just his outright decision, unless he had to abstain and let the investors decide? I’m not sure if he had a controlling stake in xAI.
Edit: You also left off ‘overvalued’ when referring to xAI/Twitter. I think SpaceX honestly could have grown into it’s individual valuation pre-merger.
I wouldn’t be surprised if the opposite happened given how this gimp’s companies are known for being divorced from the fundamentals.
I think people might see that sometimes, but not understand why, because they just see a starship blows up headlines and don’t understand what is happening as it’s a test program (for now), and the headlines / stories don’t convey that.
So when things explode, sometimes it’s fine, and the stock might go up because a lot of really important things still were tested, some for the first time, and they went well.
Other times, things will explode and it can cause huge delays, and while they learn something, it’s still ‘bad’ compared to the above blow ups, and the stock will very likely go down when these ones happen.
And then sometimes, something goes wrong on the test pad and you blow it up, and that is very bad. It’s a test pad, its meant for that, but it causes huuuuuge delays.
But OP is right, they brought this new chaos upon themselves by going public. They really shouldn’t have done it yet.
This is normal for an IPO look at the history of ASTS or RKLB they very similar to SPCX and have a lot of volatility.
I’ve made a lot of money on both. But I refuse to invest in companies owned by fascist pricks who has gleefully killed people and has boasted about it.
That’s a weird way of saying a stock started at $135 and is now at $181 a week later, but some people bought it when it was higher than that for a few days.
I mean seriously? I want spacx to fail super hard and musk to get completely dumped on, but this amount of volatility is completely typical when well known companies start an IPO. It sucks it’s like 35% higher than the initial offering price.
Don’t worry. We all get to prop up this failing stock in the next few days, when the Indexes start getting forcibly loaded up with Elmo’s latest meme stock. Then the disease will just be endemic in our portfolios.
We all get to prop up this failing stock in the next few days, when the Indexes start getting forcibly loaded up
Indexes won’t start buying into these stocks for a few more months. And they aren’t forced to buy. They set their own policies, they answer to their own boards, and they can absolutely choose to avoid this stock if they choose.
I would say the bigger threat is SPCX stock undergoing the same manipulation and price-pumping we saw happen with Tesla. When the SEC is fully castrated, the Feds have already acknowledged SpaceX is “Too Big To Fail”, and the big banks all have oodles of shares leveraged to the hilt, there’s a vested interest across the board in this stock going up up up forever.
Then the disease will just be endemic in our portfolios.
The disease is the stock market as a whole. Asset inflation creates malinvestment. The fixation on economic growth means we’ll immolate useful capital in the name of the Big Number Going Up. And disproportionate ownership stakes cause property to congeal into fewer and fewer hands with every generation.
Our portfolios aren’t at risk, because our porfolios are less and less important to the final valuation of these markets. This is six big companies sucking each other off in an ouroboros of graft and fraud. If the markets went to zero tomorrow, we’d be far better off over the long run than if this post-COVID bull run never ends.
I don’t own any ai effected tech stock, but I know my entire portfolio will go down when the ai bubble bursts. Sucks. Not sure if I’ll try and sell off and buy the dip back in, or just ride it out, yet.
The good news is that all of the SpaceX top valuation won’t actually drag all of our Collective portfolios if it were to collapse, it will sting a bit but all of us invested in, say, VTI and VOO, can absorb that much stupid.
I wonder what happens if there’s a handful of companies immediately behind it they look just like it though. Thankfully S&P 500 has said that they will not index SpaceX until they actually earn it through profitability.
I own a tremendous amount of AI affected tech stocks relative to the rest of my portfolio, and I’m trying to divest but doing so bleeds me through additional capital gains taxes for my state, which I wholeheartedly believe should exist as long as the billionaires have to pay them, too. It’s just a difficult calculation for how much risk I want to wear versus how much capital gains I want to incur to make my way towards the exits to put my money in more boring things.
After briefly pushing SpaceX’s market value close to $3 trillion, investors have begun reassessing whether the stock’s rapid advance can be justified by fundamentals.
Nothing in the stock market has been about fundamentals for a very long time. Especially regarding Musk companies.
I believe Uber was the company to break the fundamentals game
The entire fundamentals game was broken back in around 2012 when, in the aftermath of the 2008 Crash, Central Bank meetings setting interest rates became more important in setting the direction the Stock Market took (up if they lowered interest rates, down if they did not) than fundamentals.
It just so happens that the period when Uber rose coincided with that period of high interventionism by Central Banks which lasted almost a decade since their solutions for the 2008 Crash did not address the underlying causes and the recovery following that Crash was one of the slowest post-Crash recoveries ever (in fact, Interest Rates and GDP Growth are still not back to their historical trends).
It wasn’t Uber who broke the Financial System’s reflection of real wealth creation, it was Zero Interest Rate Policy flooding the Economy with pretty much free money and Too Big To Fail meaning that certain Financial Institutions could do every Financial Crime they felt like and never really be punished for it and take any risk they felt like because Central Bank money was always there in the background to save them if they went too far.
Chicken and egg problem there.Have you considered the possibility that the Fed just got better at making projections?
it was Zero Interest Rate Policy
The interest rate has been above 2% for more than four years now. It’s currently at 3.75% so even if it is as you say, it doesn’t explain what’s happening now. I think I’ll just stick with “irrational exuberance” being the explanation.
I bought some around 150 when the IPO first hit, I watched it jump to ~200, and then I got scared and sold it the following Monday around 190-ish. It’s been holding around 185, but I’m just not sure what’s going to happen with the stock.
Don’t pay attention to me I’m just a guy on the Internet.
Back when Facebook stock took a slide after the initial IPO, I bought at $25 and sold at $50 a year later, thinking I had absolutely cleaned up.
Yup I went back and forth of whether or not to keep my shares but it was only like three so I wasn’t going to be a millionaire anyway.
Boo hoo my shares in a company owned by a fascist and with absolutely awful revenue in comparison to it’s valuation are losing value just as expected
cry me a river
All of this.
It’s up 35% from its starting IPO pricing…
it opened at 171 that’s not 35%
It most certainly did not. The IPO was $135.
It’s like suuuuper easy to look up. Literally any search you want for spacx ipo or any stock trading site. $135
You’re retarded. 135 was for people who bought through their brokerage who will get banned from trading with them if they sell right away. Opening price was 171
How did I buy at 150 at the open market then?
You ignorant fuck. It was $135 for the offer price, was about $150 around 10 am on open market (Friday), and closed the day out at around $161. Everyone who bought on or before Friday is up. Then the extra chad toads knocked it to over $220 after market close Monday night a few days later and it’s been drizzling down to the $181 it sits at now.
The $135 was was the pre open market but nothing like what you’re talking about. It was open to anyone across a bunch of different brokerage firms. You could have been any regular schmuck on even Robinhood and bought shares at $135 if you requested them. No exclusives only. Also “you can’t sell it as soon as you want or you’ll get banned by your brokerage” all depends on your brokerage. Some like Charles Schwab don’t give a fuck. others may not let you flip early or you get a 30 to 60 day ban from buying other early allocation shares of new stocks. I don’t think anyone bans you from trading through their brokerage if you flipped a stock.
lmao I literally watched the stock go live why are you even commenting on shit you don’t know, it wasn’t even trading at 10am on Friday.
You’re full of shit, man. The best part is that anyone in here who thinks you might not be can do a simple search for the info to see that you’re full of shit.
“When did spcx start trading?”
“What was the initial price for spcx?”
“What was the price of spcx after it’s first trade day?”
“When could you get shares of spcx at $135?”
You’re either a troll or an idiot. Probably both.
*its. You wanted “its”. It’s means “it is”.
“my shares in a company owned by a fascist” - At face value, this says you’re a fascist.
Sorry for forgoing the /s tag, i thought the “Boo hoo” and “cry me a river” were enough mate
Oh I’m not talking about your entire post and opinion, I was just amused by that particular part of it. I don’t actually quite understand or agree with the rest of your post but that’s fine.
So the pump dumped?
Wow. Such surprise. /s
Saying the average buyer is almost underwater is another way of saying that the average buyer has made a profit.
The media does this constantly with Elon.
They would have to realize that profit and to do that they’d have to sell. Any meaningful quantity of “average buyers” cashing out would certainly result in most of them selling at a loss as the price dips below their break even.
I mean, is it really an IPO if it isn’t insanely overpriced when initially offered?
Yeah, I would say it’s quite usual to see a big dip right from the start. It’s just hamsters for whom buying Space X is their first trade don’t know about that
Initially no, they’re designed to be under so that it surges after ipo, that makes it look good performance.
Wouldn’t they rather it not surge too much though, since in this case, thats billions that was left on the table.
I think it’s done so that the price goes up and benefits all the long term share holders.
Well this one’s designed to slip quickly into index funds and forced buying, so it makes sense to be high.
The IPO was $135. Right now the price is at $181
Oh look, the completely expected and basically dependable event that happens after EVERY IPO, happened. Anyone jumping on an initial IPO is a fucking idiot. They always go under.
They might eventually still make it back to be profitable if they wait months or even years… or they could have waited a few weeks and bought the inevitable dip and never been underwater in the first place, making more profit.
…in USA america, initial IPOs are ATM machines to fuel CD deposits…
The only IPO I ever jumped on was ARM Holdings, and that actually ended up doubling within a couple weeks. Made a tidy profit on it, then dumped it when it plateaued.
Bet you wish you held it now though. Up about 7x since it first opened.
Man, I was having a good day, too…
A win is a win!
Notably ARM was not mainstream when it IPOd either, meaning it was a safe® bet at the time.
Most IPOs have become sensationalized to drive up interest, which is terrible for everyone except a select few.
I’m not sure what you mean. It already had complete dominance of the smartphone market, which was, at the time, still growing.
We in this forum are a specific type, few use lemmy, and few invest in Arm directly.
SpaceX and Arm aren’t comparable, f.e. I know a college student investing in Space X, as well as an Elderly man, a cousin of mine who works in marketing, etc. It’s normal joes who want in. That never happened to Arm, and I’d be surprised if it ever does. It won’t be mainstream. I don’t know anyone personally who invests in Arm other than myself.
I’m talking about norms and sensationalism, not the state of a technology.
Oh I see what you mean. Yeah that’s a fair point.
Yes, sometimes gambling pays out.
$185 is still way above the already ridiculous IPO price of $135. If this market made any sense, it wouldn’t have gotten this high in the first place, but since we’re here, it should really continue dropping. However, knowing how this market is, I wouldn’t be surprised if this is just a momentary dip before going back up for some dumb made-up reason.
Yeah, unerring faith in the magical powers of Elon continues to be a hell of a drug. Tesla does not remotely justify its current valuation either.
That was the entire point of the IPO wasn’t it? Funnel money to Elon and his friends and leave the rest of the (less connected) idiot investors holding the bag? Anyone who didn’t own before it could sell wasn’t one of the in-crowd that was supposed to be handed money. If you did buy, you weren’t buying based on any business fundamentals and should have known to sell as soon as any gain could be realized which would have been hours or even minutes after buying.
Someone more knowledgeable than me please correct me if I’m wrong but I don’t think any of the original private investors have been capable of selling anything and I don’t think they will be able to for another 30 or 60 days.
And IMO, I think Elon is thoroughly convinced that he will have another Tesla stock situation on his hand, where it generally keeps going up unreasonably for many many years.
There’s a lockup period ya. I heard they reduced the duration though, but it’s typically 6 months.
Anyone who bought at $135 the money went into SpaceX’s balance sheet.
For now, anyone buying after the $135 is buying from people who bought those $135 shares.
Mark Cuban is famous for having zero cost collared his shares that he couldn’t sell and getting out of the dotcom bubble with his money since it protected him from the downside that happened, so maybe it’s possible they’ve done that here as well?
lol … psychopaths and sociopaths with a never ending thirst for profit are surprised that infinite growth no matter how much you want to believe in it can not sustain itself are surprised when their money can’t magically grow any more.
Good :D
