There's another Starship launch today. It'll be interesting to watch the stock price react to the failures and successes of their testing campaign.
SPCX is now Wall Street's most shorted new stock
41–50 of 134 posts
Re: SPCX is now Wall Street's most shorted new stock
#42Every single shorted stock, was purchased by someone else who is taking the long side of the trade. So there's as many people betting the stock will go up. This says more about volatility and volume of trading, than anything else.
> Every single shorted stock, was purchased by someone else who is taking the long side of the trade. > So there's as many people betting the stock will go up. The first sentence is a useful reminder, but second has a error: A single person can have multiple bets, and not all bets are the same volume. For example, Alice has a budget of $10 and believes the coin-flip will land Heads. Alice makes a $5 wager with Bob an…
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Re: SPCX is now Wall Street's most shorted new stock
#43In a few weeks the pre-ipo share owners can offload the first batch of their shares (after q2 results release) So guessing non investors in SpaceX are shorting for this event in expectation of a drop
Typically this would be prohibited (at least as an employee)
Sorta, there are no SEC requirements for lockup. It is all depends on the agreement between the IPO company and the IPO underwriters syndicate. Spotify and Slack notably skipped lockup entirely.
Goldman Sachs, Morgan Stanley, BoA, ect are the ones who set the IPO lockup terms based on their risk and exposure post IPO.
Indexes, exchanges, underwriters, ect are all private institutions who mostly can and do set their own rules.
Re: SPCX is now Wall Street's most shorted new stock
#44Earlier quoted context omitted.
I haven't seen anything saying $40. The lowest I have seen is $70.
From TFA: > "I think it could be half over the course of the year," Noble said, adding that he believes a fair value for the shares is around $30, implying a decline of roughly 78% from current levels.
That's an absurd valuation. Typically stocks are valued at what people are willing to pay, with earnings partially driving that value.
Re: SPCX is now Wall Street's most shorted new stock
#45Earlier quoted context omitted.
Anyone that thinks Musk approaches anything for short-term results doesn't understand Musk.
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it's so weird and kinda disturbing how many people really believe that was a Nazi salute. It's so easy shape public opinion with media and algorithms.
Same thing happening with "datacenters will destory the world because of their water use" BS
Re: SPCX is now Wall Street's most shorted new stock
#46Earlier quoted context omitted.
This isn't saying anything, anyone selling a stock is selling to someone going long.
That's exactly the point. The clickbait title wants you to forget that fact and draw an incorrect conclusion. It could have also been, "SPCX is the most purchased new stock", but that wouldn't have fed the desired narrative.
You're conflating two things though. Shares are being borrowed to sell in this instance, referred to as short-selling. These shares can theoretically be borrowed multiple times over to sell (ex. Gamestop fiasco). This is not current owners of the shares selling to new buyers, they are selling already-owned shares of SPCX.
Re: SPCX is now Wall Street's most shorted new stock
#47Every single shorted stock, was purchased by someone else who is taking the long side of the trade. So there's as many people betting the stock will go up. This says more about volatility and volume of trading, than anything else.
> Every single shorted stock, was purchased by someone else who is taking the long side of the trade. > So there's as many people betting the stock will go up. The first sentence is a useful reminder, but second has a error: A single person can have multiple bets, and not all bets are the same volume. For example, Alice has a budget of $10 and believes the coin-flip will land Heads. Alice makes a $5 wager with Bob an…
You're absolutely correct, and I should have been more precise. The value is always identical, but the number of participants, need not be the same for each position. Mea culpa.
Re: SPCX is now Wall Street's most shorted new stock
#48Re: SPCX is now Wall Street's most shorted new stock
#49Hasn't the stock already collapsed below IPO price? Does that mean the IPO was simply overpriced? Do these people expect the stock to go down even further? Shorting is way more risky I don't see why this would be the case unless my questions turned out to be predictions.
Tbh I'm no5 sure I've even seen an IPO where the price didn't collapse initially.
More than half of IPOs fall below their price in the first year and AFAIK it’s something like more than half underperforming market over the first five.
Basically an IPO is a bad bet for a five year position. But SPCX is especially bad.
Re: SPCX is now Wall Street's most shorted new stock
#50[flagged]
I would argue the current price action isn't even driven by any company decisions. The stock needs to settle for a while after IPO.