r/wallstreetbets
SPACEX Rocket ship to Titanic
Author warns SPCX will crash post-IPO due to massive insider selling and employee cash-outs, despite billions in passive fund inflows.
- Nasdaq and Russell tracking funds will inject billions into the stock shortly after launch.
- Passive funds are legally required to buy shares within 5 to 15 days of the IPO.
- Insiders can dump up to 30% of their holdings immediately after the Q2 earnings report.
- Employees are now millionaires and historically dump shares at the first opportunity.
- Insiders collectively own 50% of the company, creating a massive supply overhang.
ROCKET SHIP
Options trading starts Tuesday, also any fund that track the Russell legally have to buy shares within 5 days of launch and any fund that tracks the Nasdaq has 15 days, this will inject $7 billion to $27 billion worth of capital into SpaceX from Nasdaq tracking funds alone, and a further $2.87 Billion from Russell large cap funds
TITANIC
Insiders can dump 20% of their holdings immediately after Q2 earnings report, and at the same time they can unlock another 10% providing SpaceX has traded 30% above IPO price of $135 for 5 days out of 10 prior to earnings report, and considering they own 50% of the company collectively and that doesn't include Elons shares, this thing could be in for a rough ride come July.
Will they sell ? I think most employees will sell as they are now millionaires and you see insider's dumping every IPO at the first opportunity.