spacex

it's unheard of for a company with an annual revenue of $18.67 billion, one that operates at a loss and will keep operating at a loss for years, to reach a valuation of $1.77 trillion. i can't say what'll happen in the short term, but in the long term i'm certain the people investing in it are going to get slapped.

they are selling a company that lost 5 billion dollars last year at a 1.8 trillion dollar valuation. there's no limit to human stupidity.

this is not investment advice, but it's the method elon musk has come up with to nibble away at the money of completely ordinary investors, people who invest in indexes, and the money in pension funds.

the s&p made the right call by not adding it to the index. yes, with this rush, it'll bring money to those looking for action who'll hit and run in a day or two, but the money of most individual investors and people with investments in pension funds is going to get nibbled away too.

the company is already going public at twice the valuation it should be, it has never seen a profit and is constantly posting losses, and it's impossible for it to see a profit anytime soon.

but elon knows where he'll find the money, and spacex investors, with their shares in a firm that has never seen a profit since the market opening, will fleece the ordinary investor like always.

spacex buyers are about to be wiped out

here's what nobody's telling you!

right now, only 4% of spacex shares are actually being traded. the other 96% is locked.

this changes on august 6th!

the q2 earnings report will be released, and instantly 20% of insider shares will unlock. then every 2 weeks another chunk will be released onto the market.

by september, insiders will be able to offload 44% of all shares. the circulation rate will jump from 4% to almost 10 times that overnight.

think about what this means: for every 1 share being traded today = 10 more will appear.

facebook did this in 2012. the ipo was $38. the lockups ended. six months later: $18. half the value flew away.
not because facebook was a bad company. but because the supply showed up and the buyers ran dry.

$spcx is the same movie. just on a much bigger screen.

my target: $80-90 by year's end.