171–180 of 476 posts
After years of companies refusing to go public (looking at you Stripe), it's almost refreshing to see a hyped tech go actually IPO.
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S-1 isn’t public yet. Source on the lockup period? SpaceX for example filed with accelerated release of insider/investor shares so I don’t think we can know if this is the case until the filing documents become public.
Common knowledge: https://en.wikipedia.org/wiki/Lock-up_period
365day lockup isn’t a universal standard. For example for SpaceX 20% of insider shares can be sold in the first few days. 100% within the first 3 months.
Without a public S-1 filing we don’t know what the lockup for Anthropic will be
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It's more insidious than that. These IPOs aren't being rushed, they were waiting for all the pieces to be in place to force 401ks and other retirement plans to buy these IPOs. The most recent change was the NASDAQ adopting the "fast change rule" which allows newly IPO'd companies to be listed in the index after only 15 days of trading. This rule was decided March 30, 2026 and only came into effect May 1, 2026. The pl…
As unlikely it is to happen at scale, as a thought process - what would happen if people start selling those index funds in a mad rush? Just drives the transaction volume because those with that new money will just buy something else in the market? I know SpaceX, Anthropic, and OpenAI will probably be a drop in the bucket in terms of scale of these funds, (free float % etc). But, is it realistic to take the money out…
The bottom is going to fall out of the market and it's going to take years to recover, I don't see any reason to suffer through that (and neither do my retirement-age relatives).
I'm after steady gains in an approximately efficient market, not a wildly unsustainable speculative boondoggle, thanks.
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This has been a thing in the CRSP indexes (ie. the benchmark for Vanguard’s VTI) forever. As long as it meets float and cap requirements, it’s inserted into the indexes five days after trading begins. It makes sense. They intend to track the market as it is. Though, you can definitely make the case that the popularization of index funds has allowed their holders to essentially become patsies to hype IPOs.
> As long as it meets float and cap requirements Even with the CRSP indexes this was recently changed to make fast-tracking for these IPOs easier.[0] > CRSP indexes were also recently changed to better accommodate fast entry . . . Previously, these screens included having at least 10% of shares qualifying as freely tradeable (known as float shares outstanding, or FSO). However, in April the methodology changed to all…
The float requirement changes are directly due to these huge IPOs only placing small amounts of float on the market. Their goal seems to be tracking the market and making this change prevents them from excluding two notable companies from their indexes.
IIRC CRSP indexes are float-weighted so they aren't going to attempt buying a ton of these IPOs anyway due to that low float.
Again. Would I have made the change? No because placing that little float on the market isn't kosher IMO.
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Total market indexes and target date funds will include this and SpaceX on float adjusted basis I believe. The blast radius is much larger than funds that track the NASDAQ directly.
But isn't that what "total market" means? I don't see how if you invest in a total market fund you could declare "except for SpaceX, Anthropic and OpenAI". Why is it so bad for these accounts to be invested in these companies anyway? Seems pretty typical, i bet all kinds of companies are added to total market indexes each year.
I would have less of an issue if the inclusion in major indexes was delayed 6-12months but we are looking at inclusion within like 5 days for some of these indexes.
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S-1 isn’t public yet. Source on the lockup period? SpaceX for example filed with accelerated release of insider/investor shares so I don’t think we can know if this is the case until the filing documents become public.
sure but it would be really weird if there wasn't one
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The market can remain irrational longer than you can remain solvent.
> The market can remain irrational longer than you can remain solvent. And you can consistently beat the market as long as passive index investors believe in efficient markets.
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Very few 401ks offer the NASDAQ 100 as an investment option. Last I checked it was <1%.
Apparently the rule change also affects CRSP, which is the index behind Vanguard's Total Stock Market (VTI) index funds. https://finance.yahoo.com/markets/stocks/articles/spacex-ipo... VTI in turn is the primary holding of most of Vanguard's Target Date retirement funds, which are widely held in 401ks.
Other indexes do not have these multipliers, and are much larger. The exposure for e.g. VTI is far, far less.
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what is going to cause the market to “sneeze”?
Exactly. Incredibly hard to understand what hard, non-headline-quoting, steel man arguments there are about how exactly the market will hiccup. And as if all of the AI companies somehow know this and are looking to IPO themselves out when anthropic revenue is growing > 10x per year for multiple years. Feels like a massive disconnect between “this will all implode” people and any real numbers.