SpaceX shares crashed below the $135 IPO price, wiping out $1 trillion since June. A scrubbed Starship launch and upcoming investor lockups triggered the selloff.
  • Gsus4@mander.xyzEnglish
    4 hours

    “vanishes” from the pockets of buyers into the pockets of the IPOers

  • TigerAce@lemmy.dbzer0.comEnglish
    4 hours

    Musk is already the person who lost the most wealth a while ago (biggest loser ever to have walked this earth). So now he beats his own record.

    • UnderpantsWeevil@lemmy.worldEnglish
      6 hours

      The market can stay irrational longer than you can stay solvent.

      The stock hit $123 on Friday. It’s still got a $1.6T market cap. I have no idea where they got that headline from.

      • magus@l.tta.wtfEnglish
        1 hour

        I have no idea where they got that headline from.

        The “IPO price” for institutions (banks, hedge funds, a tiny bit for retail brokers) was $135. It opened on the public market at $150-something.

        Still perhaps more than the company is worth,but at this point an institution that fought to get in on the IPO would be down 23% (unless they dumped it, which plenty did).

  • NM_Gringo@lemmy.worldEnglish
    9 hours

    In a way SpaceX did me a favor. I dumped my NASDAQ composite fund before they started carrying SpaceX. It’s been on a downward trend ever since.

        • boonhet@sopuli.xyzEnglish
          4 hours

          Well yes but that doesn’t mean an entire trillion dollars existed first. Valuation goes by the latest trade price, not total purchase price of all stocks.

          A million people could all buy a share of something that has a million shares for 1 dollar and then the some person buys one off one of the investors for 1000 dollars and nobody’s selling for any less than that. Congratulations, it’s now a billion dollar company. Now some people realize it’s a bubble and lower their sell price to 10 dollars. A few people buy. It’s now a 10 million dollar company. 990 million was wiped off the stock market.

          That obviously simplifies it but you get the point.

        • krisevol@lemmus.orgEnglish
          7 hours

          It moves when other buy and sell yes, but think about elon holding the stock. He “lost billions” but no money moved. So in this case the money never existed.

          • conquer4@lemmy.worldEnglish
            7 hours

            If you can use it as collateral, then it exists just as much as a house or property does.

            • krisevol@lemmus.orgEnglish
              5 hours

              The stock exists yes, but the money didn’t exist. It only exists one you loan out then money is “created” though fractional lending. No elon created trillions of cash, not hoarded.

          • huppakee@lemmy.worldEnglish
            6 hours

            There is two truths to this: not 100% of the company exchanged hands. The part that hasn’t changed hands only lost perceived value, no money has moved. The part that is exchanging hands is real people losing and winning real money.

          • UnderpantsWeevil@lemmy.worldEnglish
            6 hours

            So much of this is blogger brain, with people hearing rumors based on clickbait headlines, and having no idea how the money moved around.

            The major index that bought into SpaceX on IPO day was the NASDAQ-100. S&P and DOW indexes have not yet included it.

            While US ETFs currently own around $16 billion worth of the stock across 179 ETF products, that’s around 1% of the total market cap of the firm. The single largest shareholder - at around 44% of the market cap - is Elon himself. Another 20-odd% is owned by various private equity funds that are a whose-who of the modern tech sector - Google, Peter Thiel’s Founders Fund, Sequoia Capital, and Andreessen Horowitz - along with your standard assortment of Wall Street banks - Baillie Gifford, Baron Capital Group, T. Rowe Price, and Valor Equity Partners.

            Nobody has actually cashed out yet, in any meaningful capacity. But because the stock slipped off it’s IPO high, we’re getting a bunch of screaming know-nothings who insist they’ve all been robbed.

      • elucubra@sopuli.xyzEnglish
        9 hours

        It does exist. People used it to buy overvalued stock and people who knew how this was going to go got their money. The money is real, it just changed hands.

        • boonhet@sopuli.xyzEnglish
          3 hours

          Yes, but that doesn’t mean it was a trillion dollars that changed hands, or even anywhere close to a trillion necessarily.

      • FlashMobOfOne@lemmy.worldEnglish
        4 hours

        I agree that it was dumb for people to buy SpaceX, especially with the lack of any voting power.

        That said, it’s dumber to sell stock when it’s down.

        • vandsjov@feddit.dkEnglish
          3 hours

          Depends on if the stock will continue to go down… recover what can be recovered before it’s too late. It’s a risk both ways

              • FlashMobOfOne@lemmy.worldEnglish
                2 hours

                I get that, but the rest of your reply suggests that you think people should try and time the market, which is patently absurd. :)

    • 1984@lemmy.todayEnglish
      4 hours

      We have all seen Tesla go through massive ups and downs. I think its possible it will go up, but I wouldn’t wait for it. Smarter to put it into other stocks.

  • Th4tGuyII@fedia.io
    18 hours

    No shit. A valution of 100x more than yearly revenue (never mind profits) should never have existed in the first place, and was most certainly a pump and dump.

    Anyone who actually thought the stock price was going up from there was delusional.

    • TankovayaDiviziya@lemmy.worldEnglish
      14 hours

      And how SpaceX got into the NASDAQ is very corrupt. They fast tracked SpaceX’s IPO by breaking their own rules but still applied the same old rules to any companies applying for IPO after SpaceX. The folks In NASDAQ must have gotten under the table financial incentive from Musk.

      • holy_scroller@lemmy.zipEnglish
        9 hours

        Hope both SpaceX keeps dropping and NASDAQ faces a class action for this obviously corruption.

          • luciferofastora@feddit.orgEnglish
            12 hours

            That may be up to us: if they think they can get away with it, it will be our task to prove their gamble wrong. That won’t be an easy road, unfortunately.

  • Melobol@lemmy.mlEnglish
    21 hours

    It didn’t vanish. The early investors got their money and the naive buyers left holding their empty bags.
    This is what they call exit liquidity.

    Exit liquidity refers to investors who buy assets at inflated prices, enabling earlier investors to sell at a profit.
    These later investors often incur losses as asset values decline.

    It is very common in crypto and in volatile tech stocks.

    • PriorityMotif@lemmy.worldEnglish
      21 hours

      They also got it on the NASDAQ so if you have an index fund that follows that you bought into it.

      • boonhet@sopuli.xyzEnglish
        3 hours

        I exited out of all American ETFs earlier this year so I’m feeling good about myself lol

      • NotMyOldRedditName@lemmy.worldEnglish
        16 hours

        A lot of people really dont understand this.

        SpaceX got the money. Its on their balance sheet.

        Everyone who bought at $135 IPO price was giving money to SpaceX.

        Everyone since then is just trading shares between each other.

        The real shitshow starts once insiders can sell, until that happens we wont really know what price the market will settle at.

      • Appoxo@lemmy.dbzer0.comEnglish
        15 hours

        How early?
        I made my entry on the 8th June and sold on the 15th June expecting the crash.

        (To any zealot wanting to dump on me for trying to acquire wealth for a home: Please leave out any musk bad, spacex bad etc. comments out. Not interested in those)

        • someguy3@lemmy.worldEnglish
          7 hours

          The big players that invested years ago. They aren’t allowed to dump their stock on day 1 because of the obvious issues. But as they are allowed to sell, that increases the selling pressure as well as increasing the share pool available.

    • Soulphite@reddthat.comEnglish
      21 hours

      Hey, the orange pedophile is good at doing that too, with his stupid ass coins, and phone and anything really