r/valueinvesting
What will happen if SpaceX stock craters?
Author fears a 50% SpaceX IPO drop could hurt future AI IPOs like Anthropic and OpenAI amid heavy cash burn.
- SpaceX IPO could experience a massive 50-60% drop post-launch.
- A SpaceX crash would severely reduce projected income for upcoming AI IPOs.
- AI companies like Anthropic and OpenAI are burning cash, making them vulnerable to market downturns.
For a normal IPO that drops 50-60% after launch, I wouldn't expect a broader market impact. But given the market cap of SpaceX, combined with the fact that 2 other potentially trillion dollar mcap IPOs are going to slowly follow, I wonder if this will have a broader market impact. I could see if SpaceX drops 50%, that also means the Anthropic and OpenAI IPOs see a big loss of projected income - and given all the talk about how these companies are burning money, this does not seem like a good scenario...
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I could see if SpaceX drops 50%, that also means the Anthropic and OpenAI IPOs see a big loss of projected income
Sorry might be missing a relationship but why would SpaceX IPO hurt guidance on earnings for Anthropic and OpenAI?