r/wallstreetbets
Most of you are new and it shows $SPCX
Author warns against shorting $SPCX IPO, predicting a massive short squeeze and multi-trillion market cap due to low float.
- Extremely low short float (~5%) and limited share supply create perfect conditions for a violent short squeeze.
- Elon Musk's history of destroying short sellers makes betting against his ventures highly risky.
- Scarcity of shares means market cap is less relevant, allowing the stock price to detach from fundamental reality and surge.
- The $1.75T initial market cap valuation is absurdly high and completely untethered from reality.
- The author acknowledges the fundamental overvaluation, noting it is not necessarily a 'good buy' at current levels.
Alright before this thing uncorks Friday I have to be the one to tell you all that you are retarded. 99% of the posts I see about $SPCX are "hurr durr bubble I'm retarded, 1.75T market cap" Now let me say this yes that market cap upon arrival is indeed retarded.
BUT, and I mean BUT you can and will get absolutely fucked shorting this thing in 30 days because guess why
- You guessed it, you're retarded
- THE SHORT FLOAT IS \~5% - WHAT DOES THIS MEAN - It means the evaluation which already isn't tired to reality will SUPER BE NOT TIED to reality. There is a decent chance this thing goes to 5T market cap by the end of next week. There are so few shares the market cap doesn't matter so much yet.
- Hate him or not Elon will fuck you at the end of the day. You aren't the first person to think of shorting one of his companies and you won't be the last. You will join the line of corpses ran over by $TSLA
I am not saying $SPCX is a good buy or a bad short. I'm saying use your brain and think for a second instead of letting your emotions run wild because Elon supported Trump. People who think the 1.75T evaluation is dumb if this shit debuted at 200B it'd go up 1000% on IPO day, instead SPCX are the ones who will mainly cash in.
That is all, thank you for your attention to this matter. Don't cry when SPCX has a 3T market cap and is ahead of your darling dogshit flavor of the month stock you are holding