Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
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@iamnotU The churn is gonna look like feeding time at the gator tank.
when the guy doing the feeding falls in...
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?
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@MissConstrue Hmmm … so passive index funds will be forced to include the bloatstocks into their portfolios, right? But to make room for that, they will have to sell off much of their current portfolio. Which means downward pressure on all other stocks. Maybe time to buy some put options?
@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.
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@MissConstrue You could also start a petition drive asking the hedge funds to include an investment spread that avoids or only lightly invests in 'high risk' companies forcing premature/irrational market IPOs inclusion. Or hell, just call a spade a spade. Say "X Y Z are forcing high risk investment into medium & lower risk portfolio. We want an index option that specifically discludes companies X Y Z from the index. Get enough signatures on that, hedge fund managers will sit up & take notice
@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
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@ArtHarg I've heard a few analysts say something similar, but I don't have the courage to play the puts and shorts game. I'm more on the dividend aristocrat reinvesting for twenty years side of the board.
@MissConstrue I never did shorts either. Too risky for my tolerance, since the losses are potentially unbounded. Puts and calls are safer: I stand to lose the cost of the option at most. What is actually fun is to buy call options when you sense a short squeeze coming up. Buying them “out of the money” makes them cheap and then when the short squeeze drives up the price of the asset, you can make a nice profit by selling the option.
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@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
@MissConstrue It's all very complicated, I suspect by intent to a degree. I mean, we're all pretty well agreed that Crypto is a giant ponzi and that hype around AI has brought in such a level of investment that it's creating it's own special gravity. It's textbook overvalued. Both Crypto & AI have drawn in SO much money, including many deep pockets normally more risk adverse. A bubble popping will almost immediately pop the other as people in a panic create a run cash in their chips.
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@Beggarmidas There are index and etfs that are not broad spectrum. They're vertical markets that focus on a specific industry or niche.
indices can get really confusing really fast, which is why most people's funds are in broad market, it spreads out the risk...theoretically. I think these rules make that less true than it was.
@MissConstrue BTW: Love your nick. I had an idea for a character absolutely years ago who in the story had a public nom du guerre like Miss Take or Miss Demeanor or Miss Direction or Miss Teak. All very saucy, almost burlesque stage name adjacent for a screenplay I was working on.
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@shredder7579 Qualify: I’m not a financial advisor, but as I understand it, passive index is forced to buy shares in any stock listed in the 100.
That’s why changing the rules to allow a company that will be 95% privately held to be jammed into every index portfolio is a massive risk to the entire market.
Spacex ipo is coming in a valuation that exceed all other military contractors combined. A bigger cap that all of coke, Pepsi, frito, nestle, et al, combined.
The SpaceX IPO is expected to be the largest in history, with a targeted valuation between $1.75 trillion and $2 trillion, placing it among the world’s top 10 most valuable companies by market cap. At a $1.75 trillion valuation, SpaceX would rank 8th globally, surpassing companies like Meta, Tesla, and Broadcom, and exceeding Saudi Aramco’s $1.7 trillion IPO in 2019.
For a company valued at 1000x earnings. A company that has never made a profit. It’s bugfuck insane. It’s pure grift.
@MissConstrue
The point is valid, but the index weighting of the SpaceX stock is not directly determined by market value. Because the company will be mostly privately held, the index will have a weighting factor that reduces the SpaceX proportion of the index. The NASDAQ approach is "aggressive" so SpaceX will still have considerable impact (I think they use 30% of market value for corporation with under 10% public ownership, or something like that). The S&P indexes are less aggressive, and MSCI indexes even less (maybe only accounting the direct public market capitalization in the index?).Interestingly, the SpaceX ipo is expected to depress the index in the prelude to ipo day because everyone knows index funds will be compelled to sell various other holdings at market price to buy ipo shares. Nobody wants to own shares they'll be forced to sell in a buyer's market.
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue
It is worth mentioning that nobody is FORCED to buy or hold a NASDAQ index fund. If I owned such a fund, I'd move to the sidelines for a while (i.e. switch to a different fund) while these mega-ipo deals play out. fwiw -
@shredder7579 Qualify: I’m not a financial advisor, but as I understand it, passive index is forced to buy shares in any stock listed in the 100.
That’s why changing the rules to allow a company that will be 95% privately held to be jammed into every index portfolio is a massive risk to the entire market.
Spacex ipo is coming in a valuation that exceed all other military contractors combined. A bigger cap that all of coke, Pepsi, frito, nestle, et al, combined.
The SpaceX IPO is expected to be the largest in history, with a targeted valuation between $1.75 trillion and $2 trillion, placing it among the world’s top 10 most valuable companies by market cap. At a $1.75 trillion valuation, SpaceX would rank 8th globally, surpassing companies like Meta, Tesla, and Broadcom, and exceeding Saudi Aramco’s $1.7 trillion IPO in 2019.
For a company valued at 1000x earnings. A company that has never made a profit. It’s bugfuck insane. It’s pure grift.
@MissConstrue @shredder7579 I think having any stock that Elon Musk actively manages is a risk. The guy is unstable and toxic. The IPO is set up to make him even richer than he already is. The company has many unprofitable subsidies. I wouldn't touch SpaceX stock with a 10 foot pole and I certainly would not buy into any fund that included it. (1/2)
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@MissConstrue @shredder7579 I think having any stock that Elon Musk actively manages is a risk. The guy is unstable and toxic. The IPO is set up to make him even richer than he already is. The company has many unprofitable subsidies. I wouldn't touch SpaceX stock with a 10 foot pole and I certainly would not buy into any fund that included it. (1/2)
I am slowly moving all of my retirement investments out of the stock market and into FDIC insured CDs. Yes, I know the potential for profit is much lower, but I also know that the risk is basically nonexistent. It's all going to come tumbling down and I'm not going to let it take my retirement funds with it. (2/2)
@MissConstrue @shredder7579 -
@shredder7579 Qualify: I’m not a financial advisor, but as I understand it, passive index is forced to buy shares in any stock listed in the 100.
That’s why changing the rules to allow a company that will be 95% privately held to be jammed into every index portfolio is a massive risk to the entire market.
Spacex ipo is coming in a valuation that exceed all other military contractors combined. A bigger cap that all of coke, Pepsi, frito, nestle, et al, combined.
The SpaceX IPO is expected to be the largest in history, with a targeted valuation between $1.75 trillion and $2 trillion, placing it among the world’s top 10 most valuable companies by market cap. At a $1.75 trillion valuation, SpaceX would rank 8th globally, surpassing companies like Meta, Tesla, and Broadcom, and exceeding Saudi Aramco’s $1.7 trillion IPO in 2019.
For a company valued at 1000x earnings. A company that has never made a profit. It’s bugfuck insane. It’s pure grift.
@MissConstrue @shredder7579 those numbers are silly. That is just blatantly making things up out of thin air. People aren't going to only lose faith in markets, they're going to stop believing in money
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue so YET ANOTHER REASON* why #retirements should not be contingent on #StockTrading and #Stocks in general!
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I am slowly moving all of my retirement investments out of the stock market and into FDIC insured CDs. Yes, I know the potential for profit is much lower, but I also know that the risk is basically nonexistent. It's all going to come tumbling down and I'm not going to let it take my retirement funds with it. (2/2)
@MissConstrue @shredder7579@mlanger @MissConstrue @shredder7579 I’ve been doing the same for the past couple of years. Also been spreading across multiple financial institutions to ensure all my retirement funds are fully FDIC insured and reduce risk with an individual financial institution failure.
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Y’all, we need to talk about upcoming #IPOs, and the insane rule changes that #nasdaq has just announced.
Nasdaq rewrote its #index inclusion rules to accommodate #SpaceX’s mega-IPO, implementing a "Fast Entry" provision that allows the company to join the Nasdaq-100 index just 15 trading days after its initial public offering, down from the standard three-month seasoning period.
They also eliminated the minimum float requirement of 20% available public shares and instead stocks with less than 20% of shares publicly traded, Nasdaq applies a 3x multiplier to the free-float for index weighting purposes, artificially inflating low-float giants like SpaceX in passive funds.
Ok, but in English? #SpaceX, #OpenAI and #Anthropic have just figured out a scam to force every passive #IRA, #401k, and index fund to buy their stock before pricing evaluation.
They’ve figured out how to steal your #retirement.
#AI #LLM #Scam #guillotines #YouWillOwnNothing
What the SpaceX IPO means for markets
SpaceX's IPO filing has arrived. Elon Musk's rocket company is set to reshape the market when it goes public, with impacts at the index level and beyond.
Business Insider (www.businessinsider.com)
@MissConstrue This is the exit plan for everyone who has propped up Elon's ignorance and stupidity over the past decade... The twitter purchase and subsequent collapse in value, xAI's disaster as a product, Tesla's inability to ship the 'Full Self Driving' that was promised to be delivered 6+ years ago...
This is all wrapped up in Elon's only truly successful venture, SpaceX -- and once all of Wall Street and billionaire middle-eastern princes exit... Then everything falls to the ground and explodes, much like the majority of the starship launches.
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