4 ms·

What is a realistic scenario for how this plays out? After index funds mechanically buy SpaceX, the insider lock out expires and they all sell - how low does Sp

What is a realistic scenario for how this plays out? After index funds mechanically buy SpaceX, the insider lock out expires and they all sell - how low does SpaceX go? Will reality hit and a $2T valuation instantly drops to a more "reasonable" value for an unprofitable company? Will it stay in the clouds? Tesla seems in a world of hurt unless robots start making space centers from moon rocks, yet that is also defying gravity.

maerF0x0 5mo ago
Why are index funds going to buy it? Market cap is not the only inclusion metric for S&P500, for example.
- zippothrowaway 5mo ago
  They just changed the rules for NASDAQ and they are changing the rules for S&P500. The game is rigged. Our pensions and 401Ks are being forced to buy this slop. They can't resist taking all of the money off the table.
  - maerF0x0 5mo ago
    Please source this, people need to read it and know what's happening Edit: here's one https://www.reddit.com/r/Bogleheads/comments/1t2msfk/wsj_stock_indexes_are_contorting_themselves_to/ https://www.reddit.com/r/Bogleheads/comments/1t2msfk/wsj_sto...
  - Huppie 5mo ago
    I remember a recent episode of the Rational Reminder podcast about this, it's not as bad as it may look... https://youtu.be/QaQHdF2DeRY https://youtu.be/QaQHdF2DeRY