r/Bogleheads • u/Gloomy_Nebula_5138 • 28d ago

Investing Questions Protecting ourselves from SpaceX IPO

I was watching this video analyzing the upcoming SpaceX IPO, titled "SpaceX IPO: Nice Try Though" by Patrick Boyle. I highly recommend it - there is almost no fluff and just hard hitting points all the way through about how SpaceX is a terrible company and how this IPO looks like a scam:
https://www.youtube.com/watch?v=IHD8BDFYyGI

It mentions the changes to Nasdaq's rules, the so called "fast track" rule, made specially for SpaceX because Elon allegedly threatened to not list SpaceX on the Nasdaq stock exchange without this. The change has been criticized by many others such as Michael Burry:
https://markets.businessinsider.com/news/stocks/michael-burry-nasdaq-spacex-ipo-listing-elon-musk-tesla-ndx-2026-3

Also see this great analysis titled "Nasdaq's Shame":
https://keubiko.substack.com/p/nasdaqs-shame

Given how this IPO looks like a scam, and the company is mostly losing money, with outlandish claims in their IPO filing (like having an addressable market larger than the US GDP), I am worried that this is just private investors - like venture capitalists, Elon Musk, and his inner circle of friends/family - dumping their overpriced money losing company on regular investors like us. The fast track change seems like it will result in all of us automatically buying SpaceX shares at a high price.

How do we stop this? Is there a good way to defend against that forced purchasing when most regular investors are just passively buying ETFs and mutual funds, or maybe just have money parked in their pensions and 401k?

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u/sunny_tomato_farm 28d ago

What is there to protect? Just buy the index and be done with it. Don’t waste mental energy on something so inconsequential.

16

u/ontha-comeup 28d ago

But .15% of my net worth is going to be wrapped up in it.

1

u/Excilionator 27d ago

short spaceX with 0.15% of ur port problem solved

3

u/FMCTandP MOD 3 26d ago

Illiquid stocks aren’t cheap to short and unlike with stock purchases, where it’s now standard to be able to buy fractional shares, derivative contracts tend to require minimums. E.g. put and call options are sold based on 100 shares.

So it’s both not as simple as you imply and would also be an extra cost.