- 36 minutes
Maybe yes, maybe no. A lot of funds track some index. There are a bunch of indexes out there, but one of the ones you’ve probably heard of is the S&P 500. That index tends to be the 500 largest companies in the US that meet a certain criteria, and SPCX did not meet that criteria (so far). They probably will get into the “nasdaq” which is really the NASDAQ-100 which is made of 100 companies that meet whatever criteria and it ends up being tech heavy as a result.
If it gets into the S&P 500 index, then by charter, a lot of the funds that track that index have to buy it. Whether your 401(k) has it or not depends on the specific funds offered and which ones people elected into.
I imagine if most folks just used the target fund for their retirement date then they’ll probably end up with some SPCX somewhere in the stack.
- 38 minutes
Yes, part of the class warfare last century was replacing retirement pensions fought for by unions and labor solidarity with 401k’s tired to markets controlled by the whims of the wealthy and politicians they’ve bought. I’ve heard rumors as much as 25% of US markets are tied to ai over-investment instead of useful advancements like preparing for a post oil world or dealing with climate change impacts.
… How in the hell do you get the shit from eating lettuce?
Yeah that’s whats bothering me here. Is your diet entirely composed of carbs and protein? Is it the 1st time you have eaten lettuce? How did you survive so long?
Edit: I have been informed it is due to a parasite and unregulated food standard. Not a diet thing
- 1 day
The post is referencing the current cyclospora outbreak in the US, where lettuce is the source of a parasite causing diarrhea.
You know how the US is having an explosive diarrhoea outbreak because they stopped enforcing food standards and now all their produce is contaminated with cyclospora? Apparently Taco Bell’s lettuce is covered in it.
- 1 day
I’m gonna guess you’re not up to speed on US viruses, linked to Taylor Farms lettuce.
- 7 hours
cyclospora is the parasite, it will make have watery diarrhea for weeks apparently.
What I struggle is why people believed this was a good way to make money and then changed their minds this bad. Was there any significant news in between?
- Dr. Moose@lemmy.worldEnglish7 hours
https://en.wikipedia.org/wiki/Greater_fool_theory
They think thay they will exit rich and leave some other bigger idiot with the bag. It’s gambling.
- 7 hours
visiting the wsb sub is such a entertainment, people were betting on spacex and then losing a bunch. other than the rich people, the ones that uses most of thier personal savings too.
- BreakerSwitch@lemmy.worldEnglish10 hours
Note that this is the NASDAQ. They just changed the rules, specifically for spacex and upcoming AI IPOs that make it so they can be added to stock indexes (most of what your 401k is made of, probably) after 2 weeks instead of a year after their IPO. So we get initial IPO, shoots up, then drops to get more in line with expectations, but then after that, the stock is added to indexes, which was an expected massive bump on the stock. At this point, guys who floated Elon buying out twitter, among other things, who were given ownership that turned into stock at the IPO are cashing out.
I hate that we know it’s all happening and we’ll just let them do it anyway.
Lots of people are massive idiots. Quite a few people bought SPCX because they wanted to make a quick buck off of those idiots.
Also, the AI bubble is in the middle of popping, and 99.4 of the value of SPCX is in future AI nonsense while the other 0.6% is in actual space related things.
Recently, they failed to launch their new rocket because several engines failed in testing.
And you know they’re doing launch control shit with xAI now. Absolutely terrifying consequences
Declines in stock price are very common after IPOs, to the point that post-IPO stocks are considered a bad investment until the company can establish a sustainable trend of profitability and growth.
What happens with IPOs is this: a lack of market common knowledge of what the value of a company should be gets combined with the IPO price set by the company and their advisors (usually a big investment bank such as Goldman Sachs). Just before the stock begins trading, you can think of all investors as being divided into 2 groups:
- People who are really hyped about the company and think the stock price will go up from the IPO price
- Everyone else, who are more skeptical and think the stock price will go down
When the stock actually begins trading, the group 1 people often tend to discover that group 2 is a lot bigger than they are, and there are not many buyers for the high priced post-IPO stock. They are then forced to cut their losses and sell before they lose even more money. This process can result in the stock changing hands quite rapidly until it finally settles to a true market price (what it’s actually worth). This also has the effect of communicating information about the true price of the stock to everyone involved: the hyped people get whacked in the face with reality, and the skeptical people learn that the company does have some value (usually anyway, there have been exceptions).
- 10 hours
Alright makes sense.
Bottom line, next time I want to make money from an IPO I’ll keep an eye on prices dropping and aim for buying at the bottom of the barrel lol
- [deleted]@piefed.worldEnglish24 hours
until the company can establish a sustainable trend of profitability and growth.
SpaceX is now mostly xAI and AI companies are known for profitability and growth trends so obviously this is all going to work out.
- 23 hours
The true profitability of frontier AI labs remains to be established. Right now we’re constantly seeing this cycle of new models being trained, released, and then scaled back with smaller context windows and hidden behind model routers to avoid paying the full costs of inference. But these tricks blunt the usefulness of the frontier models, leading to competitors stealing customers with their latest models. It’s an arms race where the costs of training dwarf everything else, but even the costs of inference may not be profitable.
At the same time, Chinese companies keep releasing new open weight models which are severely undermining the value proposition of the frontier AI labs. Customers of the frontier labs may be unwilling to subsidize model training if they can bypass that cost and run the open weight models on their own hardware.
- [deleted]@piefed.worldEnglish23 hours
Regular industries are always working on the next possible improvement while also having either a path to profitability or are also profitable depending on how long they have existed. Sure, some can take a decade or more to get there, but they are actually on a path with significant income from their work and investment to get past the growing pains.
The larges AI companies have dumped massive amounts of money with minuscule income and exist entirely off of investments with no actual path to profitability other than wishful thinking. There isn’t enough economy to make up for the investments and it isn’t like AI is magically going to create more economy when the goal is to put everyone out of work to increase profits.
- [deleted]@piefed.worldEnglish23 hours
No, we don’t.
The true profitability of frontier AI labs remains to be established.
It has already been established: There is no profitability from frontier AI labs because they have sunk a volume of money into the whole shit show that will never, ever be recouped.
If you just ignore the eventual bankruptcies or stop ignoring the massive waster and start counting at some future date then there could be pretend profits.
- 23 hours
Ahhh this is where we disagree: on the meaning of the word established. To me, established means widely accepted and recognized as true. To you, it means obviously true.
This is where the IPO process I described above comes into play. It takes information and establishes it to become widely known and without doubt. The current existence of AI believers/boosters is evidence that AI profitability is not established, even if it is true.
- 1 day
My guess is, they knew they were joining Elon’s scam, they just thought they were too smart to be victims. They would cash out when the real victims come… But their “victims” turned out too smart to join the scam.
I think you’re missing the point of what the stock and futures markets have become since Trump came back. They’re as much making money on the way down as they are making on the way up. Essentially everything has become glorified betting and NFT markets.
The real economy underneath now matters only for very large fundamental moves. This is just pump ‘n dump.
- HobbitFoot @thelemmy.clubEnglish1 day
SpaceX had a lot of investors looking to cash out post IPO. Try may have been prevented from cashing out during the IPO, but are now free to dump the stock.
- BreakerSwitch@lemmy.worldEnglish1 hour
The secondary hump going up is presumably SpaceX being entered in NASDAQ indexes, which they recently changed the rules for spacex and other AI companies. It’s a direct drain on most retirement funds in the country, and another calculated move to steal from the middle class to give to
billionairesa trillionaire
- 1 day
It’s a part of many people’s 401ks after it IPO’d and some rule bending.
It’s also not so secretly an Ai company now in an insane Ai bubble.
- 1 day
They brought the stock because they thought they could sell it for more in a short while.
The next step in that plan was always selling it. Turns out they thought wrong.
(But more precisely on this case, some index funds were buying it with people’s retirement money because they were required to. As soon as they all brought it, there were none any more to buy.)
