I don’t know. Will this just delay bubble burst as people will be just waiting for the index inclusion?
SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
381–390 of 542 posts
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#382Earlier quoted context omitted.
That already happened with the merger of X with XAI and then the merger of Xai and SpaceX. But the reason is because SpaceX is trying to tool up for orbital datacenters. They're building a bunch of solar cell manufacturing plants and Starship launch pads.
Or at least they are selling the idea of orbital data centers since the technology for orbital data centers does not exist yet or in the short term.
It’s literally just a satellite with GPUs on it. SpaceX already has about 100MW of satellites in orbit. They’re making an upgraded version of these satellites, V3, designed for launch on Starship. Making a bigger versions of those with larger radiators (because of the duty cycle) and putting them in sun-synch is all that is required, if it can be done cheaply enough. And Starship, if it works, should be cheap enough as its propellant cost would be less than the fuel cost of using airliners to do transpacific air freight.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#383Good. Indexes are supposed to be slow-moving, precisely due to their entry requirement of sustained profitability that skews towards mature companies. All that an inclusion of these new companies would accomplish is a bailout of their stockholders by pension funds and ETFs where millions of regular people shoulder all the downside risk. SpaceX and OAI stock will be available through Robinhood, Questrade and all the o…
At this moment, there is so so much, publicly available information [1]
on the fact the SpaceX IPO is the biggest scandal in the long history of Wallstreet insiders fleecing the "Johns".
A scandal orchestrated and cheered on by the NASDAQ, as well as Goldman Sachs and JP Morgan the underwriters, that if you spend any money on it, you deserve to be parted with your money.
And if you have a 401k...you are forced to buy no questions asked.
This will become such a disaster for retail, that hopefully Goldman Sachs and JP Morgan and the NASDAQ too, will spend their next 10 years in court defending action group lawsuits.
[1] - https://www.instagram.com/reel/DWzTFAEAhSe/
"SpaceX IPO retail offering is worrying" - https://youtu.be/T8e2FbwN7dw
"SpaceX IPO: Nice Try Though" - https://youtu.be/IHD8BDFYyGI
"SpaceX IPO Scandal" - https://youtu.be/8rS3fTbC7TE
"Anthropic, OpenAI Should Not Be Allowed to IPO, Says Ed Zitron" - https://youtu.be/zbKDmkJPVvI
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#384Earlier quoted context omitted.
That already happened with the merger of X with XAI and then the merger of Xai and SpaceX. But the reason is because SpaceX is trying to tool up for orbital datacenters. They're building a bunch of solar cell manufacturing plants and Starship launch pads.
It didn't already happen. As you pointed out, people who funded the purchase of Twitter hold SpaceX shares, and this IPO is how they get their money back.
It did. After the merger with SpaceX, the Xai debt got renegotiated at a very low rate.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#385Earlier quoted context omitted.
They're an outlier in the industry in terms of profit per car. But they don't actually get revenue from selling cars, their revenue comes from selling car loans. So they're making the additional margin on the financing. They are also famous for not turning down loan applications. So putting the pieces together, it seems like they are selling high risk loans at a healthy profit. Which brings up the question of who is…
This is how many businesses operate. You have still not provided example of fraud or scam behavior.
If "many businesses" operate this way, then "many businesses" are committing fraud. You can't publicly claim to be selling loans to an unrelated company when in fact you control that company.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#386Having lived through a couple big market busts over the past 30 years, it's interesting to see that almost all of them were caused by a loosening of standards.
e.g.
- DotCom boom was letting companies IPO even if they had no revenue
- Great Recession was due to loosening credit restrictions for mortgages e.g. giving people NINJA (no income, no job) loans
so very curious to see how this plays out.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#387Earlier quoted context omitted.
Please cite funds that beat passive indexes over long periods of time.
Medallion, Renaissance, Dodge, Sequoia. But I don't think that's what you were really asking.
Interesting those are value funds? Of course that was not what I was asking or what this thread was about.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#388Earlier quoted context omitted.
That already happened with the merger of X with XAI and then the merger of Xai and SpaceX. But the reason is because SpaceX is trying to tool up for orbital datacenters. They're building a bunch of solar cell manufacturing plants and Starship launch pads.
Orbital datacenters is just an excuse of a reason to merge the two companies when there’s nothing else tying them together. They won’t actually happen.
SpaceX will run out of things to profitably launch with Starship once they launch Starlink V3 (a few hundred launches per year), and orbital datacenters provides effectively unlimited launch demand. Like Starlink was for Falcon 9, orbital datacenters are a way to fully leverage the insane launch cost advantage and launch capacity that Starship brings to the table.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#389Earlier quoted context omitted.
>All that an inclusion of these new companies would accomplish is a bailout of their stockholders by pension funds and ETFs where millions of regular people shoulder all the downside risk. Carvana is the poster child for this. It's astonishing that a company with a history of shady practices, and that has yet to offer a convincing explanation for why it is not a scam, is part of the S&P 500.
Im pretty sure Enron was in there in the past as well - 7th largest by revenue... that would make Carvana seem like nothing. To answer your question honestly though -- the inclusion is mechanical based on criteria not policing based on opinion. Carvana being a history of shady practices is your opinion... (I would agree with you)
My opinion, yes. But if someone said they had invented anit-gravity, then showed you a bowling ball "floating" but with a sheet covering any potential support, you'd be pretty suspicious. And if they refused to remove the sheet, and had previously been convicted of fraud, you'd probably be extremely suspicious. But it would still only be your opinion until the sheet was removed.
Re: SpaceX, Other Mega IPOs Denied Fast Index Entry by S&P
#390What is prompting SpaceX to IPO all of the sudden? I'm personally convinced that this is Musk trying to get out of debt from his Twitter purchase.
> What is prompting SpaceX to IPO all of the sudden?
i've wondered the same thing. I honestly think it's going to hurt SpaceX rather than benefit so there must be a reason other than furthering the mission. SpaceX beholden to the market seriously constrains them in my opinion. For a group already tasked with an unbelievably difficult mission, having to please Wall St. seems like a PITA distraction.