$SPCX
1、SpaceX stock price has fallen below the issue price. Now that it’s down to 126, will it be forming a base?
My answer: Most likely, it won’t—and it will keep falling. If you’re trading, don’t go all-in to chase the bottom; be careful not to buy the “midway down” ~
2、When it falls below the issue price, aren’t all retail investors who hold shares losing money?
Absolutely not. In fact, the only ones suffering large-scale losses are IPO participants in the secondary market—retail investors—and retail-style mutual funds that bought in at the top. Before SpaceX’s official IPO this June, it had already raised funding for more than a decade in the primary market. Sequoia Capital, Fidelity, Google’s parent company Alphabet, and various sovereign wealth funds—when they participated in A-round through M-round financing over the past few years—their per-share cost basis after conversion might be only $20, $40, or even $70.
Elon Musk himself and the founding team’s cost is almost zero. Even if the stock price falls to 100 now, those big players’ books still show several times, or even more than ten times, the profit on paper. That’s why they’re so eager to wait for the August lockup expiration period—so they can cash out.
#SpaceX星舰测试取消股价跌4%
$TSLA $TSM
1、SpaceX stock price has fallen below the issue price. Now that it’s down to 126, will it be forming a base?
My answer: Most likely, it won’t—and it will keep falling. If you’re trading, don’t go all-in to chase the bottom; be careful not to buy the “midway down” ~
2、When it falls below the issue price, aren’t all retail investors who hold shares losing money?
Absolutely not. In fact, the only ones suffering large-scale losses are IPO participants in the secondary market—retail investors—and retail-style mutual funds that bought in at the top. Before SpaceX’s official IPO this June, it had already raised funding for more than a decade in the primary market. Sequoia Capital, Fidelity, Google’s parent company Alphabet, and various sovereign wealth funds—when they participated in A-round through M-round financing over the past few years—their per-share cost basis after conversion might be only $20, $40, or even $70.
Elon Musk himself and the founding team’s cost is almost zero. Even if the stock price falls to 100 now, those big players’ books still show several times, or even more than ten times, the profit on paper. That’s why they’re so eager to wait for the August lockup expiration period—so they can cash out.
#SpaceX星舰测试取消股价跌4%
$TSLA $TSM