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r/valueinvestingr/valueinvesting· u/Red_Ochre_Music· 7d agoDiscussion 33

Who actually buys SpaceX?

Investor summaryBearish

Author doubts SpaceX buyers, attributing demand to forced index fund purchases and FOMO-driven tech/AI funds rather than fundamentals.

Bear points
  • The stock lacks fundamental value to justify voluntary purchases and is considered a 'turd'.
  • Demand is artificially driven by forced index fund rebalancing and FOMO from tech/AI mutual fund managers.
  • Retail investors are irrationally buying due to hype rather than sound financial analysis.
SPCXIBM逼空 / Meme
Post body

I know that index funds weighted to the Nasdaq are required to buy, but who else could possibly be buying this turd of their own volition? Is it really just retail investors with too much testosterone and not enough brain cells?

The other candidate I can think of is mutual funds focused on tech and AI. Like, the managers know its a bad idea, but they have to invest in it or else here from investors when the stock pops. Similar to the adage "no one ever got fired losing money on IBM."

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