Earlier quoted context omitted.
Anyone that thinks Musk approaches anything for short-term results doesn't understand Musk.
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Under this analysis, what was the short term motive? How does that pay off?
SPCX is now Wall Street's most shorted new stock
61–70 of 134 posts
Re: SPCX is now Wall Street's most shorted new stock
#62Earlier quoted context omitted.
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.
It has nothing to do with the shares being borrowed. That's a separate transaction that comes with a fee. The point is that the share is then sold. It's sold to someone who is taking the long position. The original owner of the share, from whom it was borrowed, makes their money in fees, and by investing any security deposit given by the borrower. They are not taking a long or short position.
Yes, that is how short-selling works, but you're claiming that the only reason the headline isn't "SPCX is the most purchased new stock" is for narrative reasons, which is patently false. Shorting necessitates that someone decides to sell a stock they do not own, which creates downward pressure on the price. Saying "there's always someone on the other end of the transaction" is true, but not at the same price. If what you were implying were true, the price of shares would never change. You probably understand this, but share prices decrease and increase due to the number of buyers and sellers. Hence, the more people that short-sell a stock, the lower the share price goes until it can find buyers.
Re: SPCX is now Wall Street's most shorted new stock
#63Earlier quoted context omitted.
It has nothing to do with the shares being borrowed. That's a separate transaction that comes with a fee. The point is that the share is then sold. It's sold to someone who is taking the long position. The original owner of the share, from whom it was borrowed, makes their money in fees, and by investing any security deposit given by the borrower. They are not taking a long or short position.
Yes, that is how short-selling works, but you're claiming that the only reason the headline isn't "SPCX is the most purchased new stock" is for narrative reasons, which is patently false. Shorting necessitates that someone decides to sell a stock they do not own, which creates downward pressure on the price. Saying "there's always someone on the other end of the transaction" is true, but not at the same price. If wha…
I never intended to imply that the law of supply and demand was nullified.
And I didn't say that the price was unaffected, just that there is as much money
thinking they're getting a valuable long term investment, as there is as money
shorting the stock. (By definition, since every sale is consensual, and of the opposite position)
Re: SPCX is now Wall Street's most shorted new stock
#64Earlier quoted context omitted.
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.
A rational person isn't willing to pay more than the present value of future cash flows. Just like how a rational person wouldn't pay $101 for a $100 bill.
Where it gets fun is that: (1) we have people selling $100 bills for more than $100 and, (2) we have people gladly buying $100 bills for more than $100.
Re: SPCX is now Wall Street's most shorted new stock
#65Earlier quoted context omitted.
Typically this would be prohibited (at least as an employee)
If you have holdings that are locked up, are you allowed to short stock or use options to hedge your position?
Almost certainly, outside of standard trade restriction windows. I don't think they have any control over what you do in the market outside of preventing insider trading.
Re: SPCX is now Wall Street's most shorted new stock
#66Earlier 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.
But the act of selling (and shorting) puts downward pressure on the stock. Those buyers are buyers at a lower price, not a higher one (like you would find in a stock with lots of buyers).
That's why saying "most shorted stock" is saying something and "every seller has a buyer" is not.
Re: SPCX is now Wall Street's most shorted new stock
#67Earlier quoted context omitted.
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I personally think he really is a fascist, but I still don't think he was deliberately throwing out a Nazi salute. Just naive about waving to a crowd in front of a camera, which is very on-brand for him.
He's naïve about many things but I don't believe any of these people are ignorant of fascist imagery or its trollish power, even if only in some bullshit recycled bad-sci-fi trope sense.
He may be more ignorant than he portrays but he is a malignant narcissist — guys like him don't even think fascism is a bad idea.
Re: SPCX is now Wall Street's most shorted new stock
#68Earlier quoted context omitted.
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
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Re: SPCX is now Wall Street's most shorted new stock
#69Earlier quoted context omitted.
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
It was a Nazi salute.
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Re: SPCX is now Wall Street's most shorted new stock
#70Earlier quoted context omitted.
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.
But the act of selling (and shorting) puts downward pressure on the stock. Those buyers are buyers at a lower price, not a higher one (like you would find in a stock with lots of buyers). That's why saying "most shorted stock" is saying something and "every seller has a buyer" is not.
Yes, stocks go up and down; hardly revelatory. The point, regardless of the imprecise wording of my alternate title, remains. There are people who think they are getting a valuable investment, at the price short-sellers are willing to sell at. There's just as much optimism as pessimism about the stock, at that price. And that's my complaint about the title, it wants to only highlight one side of the trade -- for narrative reasons.