r/wallstreetbets
SPCX Will Blow Right Past the Moon and Into the Next Galaxy
Author is extremely bullish on SPACX IPO, arguing low float and Elon's hype will drive massive FOMO, ignoring fundamentals.
- Extremely low actual float ($75B) compared to theoretical valuation allows for massive price appreciation.
- Elon Musk's unparalleled marketing skills and market psychology will drive massive retail FOMO.
- Insiders and big funds are unlikely to dump shares until retail investors are fully FOMO'd in.
Everyone is calling for a crash. Overvalued. Overhyped. Oversubscribed. This sub thinks SPACX is going to crash right out of the sky on day one. Seeking alpha says buyer beware. Motley Fool thinks it's going down 50%.
But no one calls that rag the Motley Genius. Elon is not going to let his baby fail. If you space cadets did your homework, you would realize that $1.75 trillion is the theoretical value based on float and the locked-up shares. The actual float is only going to be $75 billion. That means this puppy can 10X and still the actual value of the publicly traded shares will still be under a trillion.
Elon is the greatest pitchman in history. If you have traded long enough, you understand that market action is driven by psychology, not fundamentals. That's why TSLA is a trillion dollar company, even though it sells like 20 cars a year and zero robots. It's also the reason why insiders, funds, and other big boys aren't going to dump this until every last one of you have creamed your jeans and bought the fomo.
Position: 150 shares requested, hope I get allocated all.