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SpaceX stock erases all its gains and slides below IPO price in intraday trading

latimes.com

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Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#191

Post by lorecore »

infecto wrote: post #165
avaer wrote: post #155

Earlier quoted context omitted.

I guess the difference between "scam" and "financial engineer" is whether it works. If everyone loses their money it will be a scam. If people get rich he will be a financial engineer. These aren't two different things. The winning side will make up reasons why they are right, and the losing side will make up excuses why they were wrong.

What is this scheme he is getting away with? We all saw the numbers, it is an absolute absurd valuation. Like I said I would never make the bet but just because I don't like him, does not mean I will immediately call the scam card. Both can be true.

It’s illegal for a CEO to make fraudulent promises regarding product delivery, timelines and financial projections. Musk does this regularly.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#192

Post by samothrace »

Octoth0rpe wrote: post #75
petilon wrote: post #70

SpaceX, despite its name is an AI company, supposedly. Its S-1 states that the company estimates its total addressable market (TAM) at $28.5 trillion, of which $26.5 trillion, or 92.98%, is expected to come from AI. SpaceX is an AI company without a frontier model. Until Jan 2026 SpaceX was an aerospace company. Then xAI was merged into SpaceX on January 30, 2026, so SpaceX became an AI company less than 6 months ago…

> SpaceX is an AI company without a frontier model. Unless they manage to build such a model, then their plan looks like they intend to be an AI _infrastructure_ company. Which is probably viable and healthy business! One with lots of competition and low margins that is completely misaligned with their current valuation.

Isn't it a little absurd to be guessing what the business model might be or should be for the company with the largest ever IPO, which got a free pass on (lack of) profitability? It's a little late.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#193

Post by dhagz »

randusername wrote: post #173
ornornor wrote: post #41

“Shocking nobody” I would add… This is an obvious Musk scam and anyone with financial knowledge called it as such ever since it’s been on the table. Why else lobby and change the NASDAQ listing rules for instance?

What's the point of an IPO? Show problematic institutional investors the door and replace them with disorganized public investors? Attract talent? Seems like if the company is really doing great you'd want to retain ownership. Raise from bonds or something. Put simply, if it's valuable why would anyone sell it?

A lot of VCs had money locked up in SpaceX, like, portfolios going back a decade or more had some sort of investment in SpaceX. The IPO gave them an exit.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#194

Post by EgregiousCube »

nixon_why69 wrote: post #182
EgregiousCube wrote: post #170

Earlier quoted context omitted.

[flagged]

OP didn't arrange those goalposts, Musk and his friends did. It's the only company to get fast-tracked in this way while losing money.

He did, by arguing that a company that is fast-tracked for index inclusion has an obligation to prevent its stock price from following common post-IPO price patterns; and using "the only company to do so" as an allusion to a false trend.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#195

Post by ornornor »

nxm wrote: post #149
ornornor wrote: post #41

“Shocking nobody” I would add… This is an obvious Musk scam and anyone with financial knowledge called it as such ever since it’s been on the table. Why else lobby and change the NASDAQ listing rules for instance?

So I presume you made a lot of money shorting the stock if you were so confident?

I can hold a strong opinion on this matter without risking any of my own money.

I own no Musk stock and never short anything.

I don’t think that affects the opinion I stated in any way.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#196

Post by [deleted] »

sigmoid10 wrote: post #27
paoliniluis wrote: post #3

The IPO was meant for the VCs to cash out as all fundamentals were completely irrational, but seems like no one cares about cash flow and profitability anymore during QE times. Dumb money will keep being dumb I guess

The IPO featured less than 5% of shares as free float. So the investors are still in pretty deep with their hands tied until lock-up restrictions expire. The IPO was more of a quick, public financing round for their AI branch than an exit for SpaceX VCs.

[deleted]

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#197

Post by Seb-C »

pfdietz wrote: post #69

I think SpaceX has a great future ahead of it. I didn't buy a single share.

Same here. It's such a shame because I always wanted to invest in SpaceX (even despite it's CEO), but now most of the money would go to AI stuff rather than space exploration, so I'm out.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#198

Post by sharpshadow »

tw04 wrote: post #138
ToValueFunfetti wrote: post #82

Earlier quoted context omitted.

This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').

Really? Which other IPO involves a company acquiring a completely unrelated company just before IPO in order to bail the founder out of a bad investment? Can you name even one example in the last 50 years?

SpaceX acquired Cursor after their IPO likewise did Facebook with Instagram in 2012. Since xAI was merged with SpaceX before it’s not really unrelated.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#199

Post by hodder »

cucumber3732842 wrote: post #72
hodder wrote: post #45

Earlier quoted context omitted.

But why would you want to buy a company where the valuation reflects an extremely optimistic outcome already? Basically you are assuming obscene growth from SpaceX in AI, datacenters, rocket launches etc just to for the stock to go nowhere. The market cap was over 2T! When you buy equities, if the company turns out shockingly successful beyond most peoples probable expectations you dont simply want your investment to…

>But why would you want to buy a company where the valuation reflects an extremely optimistic outcome already? To hedge against the stock going up and making your buy in even more expensive.

Sure. But the market is littered with companies you can invest in. You don't "need" to bet on any single one of them.

Re: SpaceX stock erases all its gains and slides below IPO price in intraday trading

#200

Post by dkenyser »

ToValueFunfetti wrote: post #82
ornornor wrote: post #41

“Shocking nobody” I would add… This is an obvious Musk scam and anyone with financial knowledge called it as such ever since it’s been on the table. Why else lobby and change the NASDAQ listing rules for instance?

This is shaped like more-or-less every IPO I've seen. I think you have to wait for more of a collapse to claim dispositive evidence of a scam (or widen your claim to 'almost all IPOs are scams').

Yes, it's almost like that's why there _was_ a rule in place to prevent IPOs like this from being shoved down everyone's throats so quickly without further testing.
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