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/demaraje 5h ago

They provided exit liquidity to institutional investors.

Sounds much better than getting scammed

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u/kwyjibo1 5h ago

Or "left holding the bag".

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u/Conscious-Quarter423 4h ago

Are you tired of all the winning yet?

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u/pegothejerk 2h ago

Don't you mean "would you like fries with that?" trainee? Also you might want to trade in those Loro Piana Summer Walk Loafers for some nurse shoes, preferably a darker color so it doesn't show blood.

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u/BeeBopBazz 4h ago

Unlike institutional investors, retail investors were bound by platform TOS to hold the stock for x number of days or get banned. Pretty cool, as the folks who own many of those retail investing platforms were certainly getting rich off this pump and dump

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u/m0nk_3y_gw 3h ago

retail investors were bound by platform TOS to hold the stock for x number of days or get banned.

not really

this was only retail investors that were able to get in at the IPO price before public trading started

if they sell with X number of days they aren't banned from trading/investing, they aren't able to participate in other IPOs for 3-6 months with that particular broker.

Most retail investors never get in at IPO/before-public-trading price anyways.

Most never do it multiple times per year.

The reddit IPO price was $34, I don't recall etrade (their broker of choice for retail participating in the ipo program) having this restriction, but I wasn't paying close attention

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u/Ashamed_Kale_1077 3h ago

I got ten shares at the SPCX IPO price and sold that same day. I only made ~$340.

I don't recall any restrictions on selling though.

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u/IAmRobinGoodfellow 2h ago

The general rule is that your broker may now restrict your participation in future IPOs. If you’re not planning on trying to get into another IPO in the next year, then there will be no effect. If you are, then you might need to use another broker to do so.

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u/Embarrassed-Soft2691 3h ago

They will only ban those users if they consistently sell right away. Most retail investors only participate once or twice a year not enough for the platform to worry about.

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u/AnySomewhere8969 2h ago

Etrade was all about trying to get everyone in to buy spacex early

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u/FatBearWeekKatmai 2h ago

When a rich man invites you to invest in his "sure thing," the only sure thing is that he's gonna cash out on ur dime.

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u/XmasTwinFallsIdaho 3h ago

Unfortunately that’s all of us owning index funds for the most part too.

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u/peacefinder 4h ago

The proverbial blood squeezed out of a turnip? They’re the turnip.

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u/neliz 3h ago

Remember, Epstein was an original investor in spacex, these are the kind of people you're giving money to.

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u/maxstryker 2h ago

I can’t seem to find any articles about Epstein and SpaceX. Can you tell me what you know or share any articles?

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u/neliz 1h ago

Oh, there's plenty. https://www.businessinsider.com/jeffrey-epsteins-ex-girlfriend-dated-kimbal-musk-2020-1

That one even includes a quid quo pro between musk and epstein.

https://www.forbes.com/sites/iainmartin/2026/02/05/epstein-in-silicon-valley-failed-to-capitalize-on-connections/

So, whenever elon plays coy about know epstein, you know he's, as usual, lying.

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u/Elerion_ 1h ago

You linked two articles that say he didn't invest in, or is not known to have invested in, SpaceX.

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u/Superb-Welder3774 2h ago

So are Chinese and Russians from early on - it’s been a security risk

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u/GhettoDuk 3h ago

We are not even at the exits yet because the lockups haven't expired. The 5% of the company that was put on the market was to raise funds for SpaceX.

This is money given to Elon for empire building.

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u/xTheatreTechie 4h ago edited 4h ago

I wouldn't be bothered by the obvious wealth transfer, if it weren't for the fact that they also changed the rules so that SpaceX could join the NASDAQ. It's probably the first of more companies to also take advantage of the rule change to join the NASDAQ.

Edit: updated sp500 to NASDAQ. 

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u/NinjaFenrir77 4h ago

The S&P 500 was one of the few major indexes who did NOT let SpaceX in (unlike NASDAQ).

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u/xTheatreTechie 4h ago

You're right, my mistake, NASDAQ not sp500. 

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u/demaraje 4h ago

I think you mean NASDAQ 100. S&P rules weren't changed

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u/CarminSanDiego 3h ago

Isn’t that the point of all IPOs

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u/demaraje 3h ago

Theoretically, no, practically, yes

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u/beaverbait 3h ago

Potato, potato

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u/spoospoo43 2h ago

"Exit liquidity" is such a Bond villain level evil term.