Comment by overgard

One thing I genuinely don't understand is these companies are constantly taking in incredibly large amounts of investments, so presumably they're giving up large chunks of equity or these are loans that need to be paid back or they're committing to spending obligations they're very unlikely to be able to meet.

So besides the insane hardware buildouts you're correctly mentioning, I don't understand how anyone that invests in these companies is supposed to make their money back in any sort of reasonable timeframe?

The cynical part of me is looking at what happened to the NASDAQ rules recently where essentially index funds are going to be forced to buy SpaceX shares much earlier than they previously would have (ie, before the price has a chance to reach it's real valuation). Which, um, I'm guessing these stocks are going to drop pretty hard when people start looking at the financials of these companies.

My suspicion is that the point of these IPOs is essentially to dump the bill on the unwilling public by forcing various institutions to buy it (ie, your 401k or pension is buying this shit), and maybe their investors can squeeze some money out of this before the stocks reach an equilibrium that's probably like 1/10th of what they're "valued" at.