r/wallstreetbets
My buy for the SpaceX IPO: Low-float ETF multiplied ARM. How is this regarded?
Author bets on ARM benefiting from low-float ETF multiplier effects similar to the anticipated SpaceX Nasdaq 100 inclusion.
- ARM has an extremely low float (110 million shares), making it susceptible to ETF multiplier squeezes.
- Strong underlying fundamentals provide a safety net if the low-float thesis fails.
- Could benefit from retail and day trader momentum when SpaceX enters the N100.
Elon obviously wants to get into the N100 fast as possible, will sell 30% to retail who are likely to hold for a long time, and has a float of about 4-% (555.6 million shares). It will be subject to a 3x multiplier for APs who want to buy it to make more ETFs such as QQQ. By actually making the shares in low supply, the price will be pumped up as long as ETFs are going up.
ARM has just 110 million shares on the market, 10% of the company, and should be subject to the required multiplier rule because of its low float. Day traders and swing traders will likely be holding it when SpaceX enters N100.
Worst case scenario, I invested in a company with good fundamentals.
(I am not a professional advisor, this post is for entertainment purposes only, etc etc)