Comment by bko
5 days ago
> This Musk guy makes Ponzi look like the Pope
I don't get it. He owns some of the companies out right and has no problem securing financing. Who is he screwing over?
> First they only release 5% to 10% to create an artificially inflated price. Its called the low float strategy...
Why would you float more than you reasonably would need. What's the upside of saying "we're worth X" due to a low float? Doesn't really buy you anything. And financiers are not stupid. Much the same way you can't create a shitcoin, sell one share to your buddy and convince a bank to lend you based on the "full" market cap
> the Nasdaq 100 inclusion is supposed to be earned. You list, trade for up to a year at least, prove you are stable and then maybe you might be selected for inclusion
Not really. Nasdaq and all indexes are supposed to serve as an index of largest companies in the country. It's not a prize that you have to "earn". Not including this company would be activism and against their mission.
> But Musk told Nasdaq "fast-track me or I list on NYSE... so the Nasdaq invented a "Fast Entry" rule out of thin air..
Yeah, it's called competition. You have a choice of where to list. This is how a healthy competitive environment works. Again, who is being harmed? Why is there a "Slow Entry"? No justification for bureaucratic hoop jumping.
> Why does this matter? The second SpaceX hits these indexes, every passive fund is forced to buy, your 401k, your Vanguard fund, your target date fund. All buying SpaceX at whatever inflated price it opens at, with zero public track record. Nobody asks you.
You found a cheat code! Create a company that's generating ~15b in revenue, has a >50% profit margin and ~50% revenue annual growth rate. Now you get to list your stock publicly, let the exchanges compete for your listing considering very few public large companies grow anywhere close to that, and force large indexes to buy you because, by this point you created one of the most valuable companies in the world!
15B in revenue is less than what AirPods sell in 6 months.
It's less revenue than Spotify.
It's nowhere near what should be necessary for a company to be "one one the most valuable companies in the world."
Elon knows this. He knows that the 1.5 T "valuation" is nonsense. The market for space launches is quite simply not that big. How many more Starlinks does the world need? What would you do if I gifted you a satellite?
The SpaceX valuation is predicted on hype for scientifically & economically illiterate ideas like "data centers in space."
Elon knows this. He knows that these indexing rules are the only way to keep the hype going and avoid a space-WeWork failed IPO.
Agree that 15b in revenue is not a lot. Finance has always been about future growth with majority of companies value well out into the future. And this company is growing at around 50% and has insane margins. They dominate their space with overwhelming majority of global launches. So a high multiple is justified imo
Yeah, you’ve shown it’s great to be a billionaire. Slow-clap. What you’re conveniently skirting around is all the little people’s retirement savings being transferred to the billionaires by artificially forcing the price high.