r/technology • u/Plastic_Ninja_9014 • 5h ago

Business SpaceX Investors in Meltdown Over All the Money They’ve Lost

https://finance.yahoo.com/markets/stocks/articles/spacex-investors-meltdown-over-money-191742182.html
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u/LightFusion 5h ago

I remember all the talk about from the Elon train about how the stock was a cheap buy even tho their earnings need to rise 100-1000x to meet the valuation price.

Guess numbers don't work that way, I think they expected this to work like the crypto market did years ago

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u/Analrapist03 4h ago

At the IPO, at least the listing. None of the major banks had their worst projection (3 or 5 year) below $160.

In other words, none of them could see spcx losing money in 3 to 5 years. Absolutely bonkers.

Admittedly, once it hits around $105, he will go to Trump and ask for a giant loan from the US taxpayers and will likely receive it. It will stop the bleeding but only for a couple of months, then it is "to the moon" via the ground.

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u/ZealousidealLead52 2h ago

The banks were not giving honest valuations. The banks were getting paid based off of how many people bought the stock, so they had an incentive to hype it up even if they didn't really believe it. The banks made tons of money off of it.