1 month
You must log in or register to comment.
1 monthIt didn’t vanish. The early investors got their money and the naive buyers left holding their empty bags.
This is what they call exit liquidity.Exit liquidity refers to investors who buy assets at inflated prices, enabling earlier investors to sell at a profit.
These later investors often incur losses as asset values decline.It is very common in crypto and in volatile tech stocks.
They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.
- boonhet@sopuli.xyzEnglish1 month
I exited out of all American ETFs earlier this year so I’m feeling good about myself lol
- 1 month
A lot of people really dont understand this.
SpaceX got the money. Its on their balance sheet.
Everyone who bought at $135 IPO price was giving money to SpaceX.
Everyone since then is just trading shares between each other.
The real shitshow starts once insiders can sell, until that happens we wont really know what price the market will settle at.
- 1 month
Usually around 6 months, but they pulled some shenanigans to make it shorter somehow, but i dont really know the specifics in this case.
- 1 month
I wouldn’t rule out possible blackmail or extortion either.
- 1 month
For reference, of all the shares that were sold in the IPO, only 281m are able to be traded, the rest are in their own lockup periods from institutional investors. So 1b potential shares flooding the market in 1 month could increase the float by 3.56x
- 1 month
This is mainly just showing a lot of option conversions / actions that happened because of the merger / IPO.
There’s a small sale on the first form in March, and the 2nd form in April
How early?
I made my entry on the 8th June and sold on the 15th June expecting the crash.(To any zealot wanting to dump on me for trying to acquire wealth for a home: Please leave out any musk bad, spacex bad etc. comments out. Not interested in those)
- someguy3@lemmy.worldEnglish1 month
The big players that invested years ago. They aren’t allowed to dump their stock on day 1 because of the obvious issues. But as they are allowed to sell, that increases the selling pressure as well as increasing the share pool available.
- Soulphite@reddthat.comEnglish1 month
Hey, the orange pedophile is good at doing that too, with his stupid ass coins, and phone and anything really
- BigMacHole@thelemmy.clubEnglish1 month
It’s a GOOD thing Illegal Immigrant Elon Musk FORCED YOU to Invest in this Company with your Retirement Accounts!
- Zwuzelmaus@feddit.orgEnglish1 month
A very interesting point.
Your retirement account has to follow some rules, for example to buy large ETFs. Large ETFs have to follow stock indexes. Stock indexes have to include “big” companies.
So when a big AND inflated company comes along, makes it into the index, and then deflates, you all are screwed automatically and by all the rules.
- ctrl_alt_esc@lemmy.mlEnglish1 month
To prevent this, there were rules in place that stipulated that a reasonable time had to pass for a new company to enter the index after IPO. Strangely, they scrapped that rule just before this one…
- 1 month
No shit. A valution of 100x more than yearly revenue (never mind profits) should never have existed in the first place, and was most certainly a pump and dump.
Anyone who actually thought the stock price was going up from there was delusional.
- 1 month
And how SpaceX got into the NASDAQ is very corrupt. They fast tracked SpaceX’s IPO by breaking their own rules but still applied the same old rules to any companies applying for IPO after SpaceX. The folks In NASDAQ must have gotten under the table financial incentive from Musk.
- holy_scroller@lemmy.zipEnglish1 month
Hope both SpaceX keeps dropping and NASDAQ faces a class action for this obviously corruption.
The delusional people run the world these days, unfortunately.
- luciferofastora@feddit.orgEnglish1 month
Pretty sure it’s conmen running the world, with the delusional propping them up
- luciferofastora@feddit.orgEnglish1 month
That may be up to us: if they think they can get away with it, it will be our task to prove their gamble wrong. That won’t be an easy road, unfortunately.
- Polisheocket@lemmy.zipEnglish1 month
If I coukd afford puts I would have done it, saw this from a mile away
- psycho_driver@lemmy.worldEnglish1 month
Not to worry I’m sure the trillion was mostly just from pleb 401ks.
- ExLisper@lemmy.curiana.netEnglish1 month
It does exist and it was moved from poor people to the rich. As always.
- boonhet@sopuli.xyzEnglish1 month
Well yes but that doesn’t mean an entire trillion dollars existed first. Valuation goes by the latest trade price, not total purchase price of all stocks.
A million people could all buy a share of something that has a million shares for 1 dollar and then the some person buys one off one of the investors for 1000 dollars and nobody’s selling for any less than that. Congratulations, it’s now a billion dollar company. Now some people realize it’s a bubble and lower their sell price to 10 dollars. A few people buy. It’s now a 10 million dollar company. 990 million was wiped off the stock market.
That obviously simplifies it but you get the point.
- krisevol@lemmus.orgEnglish1 month
It moves when other buy and sell yes, but think about elon holding the stock. He “lost billions” but no money moved. So in this case the money never existed.
- conquer4@lemmy.worldEnglish1 month
If you can use it as collateral, then it exists just as much as a house or property does.
- NihilsineNefas@slrpnk.netEnglish1 month
I dread to think what he managed to spend it on this past couple of months. Hopefully no more “judo lessons” on suspicious islands
- krisevol@lemmus.orgEnglish1 month
The stock exists yes, but the money didn’t exist. It only exists one you loan out then money is “created” though fractional lending. No elon created trillions of cash, not hoarded.
- huppakee@lemmy.worldEnglish1 month
There is two truths to this: not 100% of the company exchanged hands. The part that hasn’t changed hands only lost perceived value, no money has moved. The part that is exchanging hands is real people losing and winning real money.
So much of this is blogger brain, with people hearing rumors based on clickbait headlines, and having no idea how the money moved around.
The major index that bought into SpaceX on IPO day was the NASDAQ-100. S&P and DOW indexes have not yet included it.
While US ETFs currently own around $16 billion worth of the stock across 179 ETF products, that’s around 1% of the total market cap of the firm. The single largest shareholder - at around 44% of the market cap - is Elon himself. Another 20-odd% is owned by various private equity funds that are a whose-who of the modern tech sector - Google, Peter Thiel’s Founders Fund, Sequoia Capital, and Andreessen Horowitz - along with your standard assortment of Wall Street banks - Baillie Gifford, Baron Capital Group, T. Rowe Price, and Valor Equity Partners.
Nobody has actually cashed out yet, in any meaningful capacity. But because the stock slipped off it’s IPO high, we’re getting a bunch of screaming know-nothings who insist they’ve all been robbed.
- elucubra@sopuli.xyzEnglish1 month
It does exist. People used it to buy overvalued stock and people who knew how this was going to go got their money. The money is real, it just changed hands.
- boonhet@sopuli.xyzEnglish1 month
Yes, but that doesn’t mean it was a trillion dollars that changed hands, or even anywhere close to a trillion necessarily.
- NM_Gringo@lemmy.worldEnglish1 month
In a way SpaceX did me a favor. I dumped my NASDAQ composite fund before they started carrying SpaceX. It’s been on a downward trend ever since.
- MyVeryRealName@lemmy.worldEnglish1 month
Well then, SpaceX did them no favour because they would’ve profited off their NASDAQ fund investment if not for them.
- Art3mis@lemmy.blahaj.zoneEnglish1 month
No… as they said, they had already sold. If spacex never joined or they sold later, they wouldve lost money
- MyVeryRealName@lemmy.worldEnglish1 month
I assumed that they dumped their NASDAQ fund because it was about to carry SpaceX.
- Art3mis@lemmy.blahaj.zoneEnglish1 month
I dumped mine because of the war. Missing the spacex slump was just a plus
- SaveTheTuaHawk@lemmy.caEnglish1 month
The world’s first ex-trillionaire. Back to tres commas for you.
- Echo Dot@feddit.ukEnglish1 month
When the IPO first was announced I made the point that Elon Musk isn’t now a trillionaire because not one will buy the stock at that price. Overinflated IPOs aren’t really relevant to the stock market, they already knew the value of a company they don’t need to be told what it is, they’re just a marketing gimmick.
The market can stay irrational longer than you can stay solvent.
The stock hit $123 on Friday. It’s still got a $1.6T market cap. I have no idea where they got that headline from.
- Alexstarfire@lemmy.worldEnglish1 month
Because the high was just over $200. They are talking from its peak.
I have no idea where they got that headline from.
The “IPO price” for institutions (banks, hedge funds, a tiny bit for retail brokers) was $135. It opened on the public market at $150-something.
Still perhaps more than the company is worth, but at this point an institution that fought to get in on the IPO would be down 23% (unless they dumped it, which plenty did).
- psx_crab@lemmy.zipEnglish1 month
Typical of a lot of stock IPO. People just gonna do pump and dump at the beginning, whether they recover from this later is the challenge. It’s the reason why i don’t look at IPO anymore, i’m not as fast nor as rich as those career trader so it’s high chance for me to lose money.
- TigerAce@lemmy.dbzer0.comEnglish1 month
Musk is already the person who lost the most wealth a while ago (biggest loser ever to have walked this earth). So now he beats his own record.
