SpaceX after its IPO: small investors take the hit
SpaceX has plunged since its IPO. The first insider share unlock arrives on August 4 and threatens further declines. Those who bought at the debut are already…
English · Original discussion in Spanish · Published
SpaceX plunges after its IPO: insiders get ready to cash out
SpaceX went public with enormous expectations. But barely a few days later, many IPO buyers are already in the red. The problem is not the company, but the price and the structure of the offering: an avalanche of unlocked shares threatens to sink the value. The first milestone comes on August 4, when employees and insiders will be able to sell their shares. And it will not be the last.
The first warning: unlocked shares
Those who got in on day one already know what it means to lose 20% or more. And the worst is yet to come. Shares held by insiders and employees will be released in tranches: the first unlock is on August 4, with more to trinc throughout the year. Each release adds extra downward pressure. It is no coincidence that the warnings kept coming for months: the risk was known, but many chose to ignore it.
Great company, terrible stock
The fact that SpaceX is the hottest company around does not make it a good investment at the offering price. The market has already priced in years of growth. Those who confused "a good company" with "a cheap stock" are now paying for their naivety. As often happens, retail investors' money has ended up in the pockets of those who got in earlier.
With the first unlock just around the corner, the outlook is bleak. For those who bought in the IPO, the wisest move may be not to look at their portfolio.
SpaceX went public with enormous expectations. But barely a few days later, many IPO buyers are already in the red. The problem is not the company, but the price and the structure of the offering: an avalanche of unlocked shares threatens to sink the value. The first milestone comes on August 4, when employees and insiders will be able to sell their shares. And it will not be the last.
The first warning: unlocked shares
Those who got in on day one already know what it means to lose 20% or more. And the worst is yet to come. Shares held by insiders and employees will be released in tranches: the first unlock is on August 4, with more to trinc throughout the year. Each release adds extra downward pressure. It is no coincidence that the warnings kept coming for months: the risk was known, but many chose to ignore it.
Great company, terrible stock
The fact that SpaceX is the hottest company around does not make it a good investment at the offering price. The market has already priced in years of growth. Those who confused "a good company" with "a cheap stock" are now paying for their naivety. As often happens, retail investors' money has ended up in the pockets of those who got in earlier.
With the first unlock just around the corner, the outlook is bleak. For those who bought in the IPO, the wisest move may be not to look at their portfolio.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (46 replies).
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