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r/investingr/investing· u/euro1127· 8d ago 184

What if retail decided not to participate in SpaceX IPO and provide exit liquidity for SpaceX insiders

Investor summaryBearish

Retail investors should boycott the SpaceX IPO to deny insiders exit liquidity and avoid being manipulated.

Bear points
  • IPO structure features like small float and short lockups are designed to manipulate retail into providing exit liquidity for insiders.
  • Institutional rebalancing to buy SpaceX may create temporary dips in other assets, but the IPO itself is a trap for retail.
  • Collective retail boycott could negatively impact insider returns by removing expected demand.
Post body

We all see the writing on the walls whether it's the rule changes, tiny float or shorter lockup periods it's obviously how things are conveniently being manipulated to make it so retail ends up holding the bag. Well what if we didn't take the bait and just invested in everything but SpaceX. We know institutions will have to buy post fast track but chances are some will need to close positions to make room for their spacex purchase. If retail collectively sat this IPO imagine how salty elons investors would be when they didn't get the exit liquidity they were hoping for and instead we just bought the dip elsewhere. Just saying we don't have to play their game especially when it's this obvious

Discussion · top comments15 selected
u/PoopKing5 5· 7d ago

It’s not like that at all. It’s not a gift and it’s not robbery. In return you gain ownership of a company. Like it or not that’s the general principle of market cap indexing. 80% of index companies underperform their respective index so indexers own a ton of shit. If you don’t want it, don’t do passive investing.

u/DharmaPolice 3· 7d ago

That's not a particularly practical solution.

u/supernormalnorm 3· 7d ago

The Elon hate is real and alive in here

u/vcaiii 7· 7d ago

shocking how we don’t want to create the world’s first nazi trillionaire

u/SparklingWinePapi 3· 7d ago

They have 12.5 billion outstanding shares dipshit lmao

u/SparklingWinePapi 3· 7d ago

Chill dude, you clearly don’t know what market cap is if you think these two companies have the same market cap lol

u/vcaiii 3· 7d ago

the index methodology DID NOT include billionaires buying their way into indexes with their own valuations.

u/interbingung 2· 7d ago

Maybe this is just AI generated to drive maximum rage bait and engagement.

u/xyzqwa 2· 7d ago

I just hope their using an xAI datacenter to do it!

u/Safe-Informal 2· 7d ago

Probably using Starlink also.

u/PoopKing5 2· 7d ago

You’re a weird dude.

u/xyzqwa 2· 7d ago

I think they can play kingmaker with their capacity while Grok gets reworked. I use ChatGPT and Grok daily, both have their strengths but the less censorship/guardrails is super helpful for my research.

u/semantic_fog 2· 7d ago

Dude. Like 10% of investors own 90% of all stocks in the market. Retail is around a tenth.

u/xyzqwa 2· 7d ago

Yup, I have money set aside to pick them up. Long term believer in SpaceX and xAI.

u/SparklingWinePapi 2· 7d ago

Buddy I hope I’m getting trolled. Space x has 12.5 billion outstanding shares. Market cap= outstanding shares x price per share