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OpenAI to confidentially file for IPO as soon as Friday (www.cnbc.com)
submitted 4 months ago by to c/technology@lemmy.world
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[–] 52 points 4 months ago (17 children)

SpaceX is going public at $2 Trillion dollars on like $12b of revenue.

They’re trying to foist the bag on to index funds.

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  • [–] 12 points 4 months ago (6 children)

    How can it be possible?

    How in the everloving fuck can that happen?

    How are the streets not running with blood?

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  • [–] 22 points 4 months ago* (5 children)

    waves hands

    Corruption.

    Fire all the regulators, find some shit to pump, get all your buddies in, have the NASDAQ make special rules for you, then everyone who bought in private sells on open when the index funds have to buy in. Many pensions may be legally forced to buy this shit to satisfy regulations.

    It's fucked. Well over 100x revenue multiples at IPO. They just filled their S1.

    The market makers are turning index funds into 2008's CDOs.

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  • [–] 5 points 4 months ago (4 children)

    Which is insane. CDOs were crazy, but fucking index funds is batshit insane levels of evil. Not just corruption, but all out treason.

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  • [–] 3 points 4 months ago (3 children)

    Yeah, I’ve been a fan of index investing for a while, but have become very sceptical of the sp500, nasdaq 100, etc. as valuations have become more concentrated.

    When so few assets make up such a large portion of the index I think it loses its diversification advantages.

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  • [–] 10 points 4 months ago (7 children)

    How does that even happen? They just decide what their valuation is??

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  • [–] 23 points 4 months ago* (last edited 4 months ago) (5 children)

    Yes.

    Elon musk had SpaceX buy XAi which bought Twitter all for increasingly more money from himself. The valuation is based on that. Somehow.

    Apparently they claim their TAM is $28T because identifying trillion dollar businesses is their core “repeatable business model”. None of the companies folded into SpaceX now are trillion dollar companies. How the argument that the core business is making trillion dollar companies, despite not making any trillion dollar companies, makes any sense I do not know.

    Also uhh… don’t look at their declining real revenue, or that they just bought $1B of depreciating assets from Tesla like $138M of cyber trucks. That definitely was not because they weren’t selling.

    Edit: Here's a video on this so you all can see exactly how shitty this deal is https://www.youtube.com/watch?v=-X6YzlY_8tM

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  • [–] 3 points 4 months ago (3 children)

    Yes I believe the TAM or value or whatever of a single company is 12% of all wealth in the U.S. That makes sense.

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  • [–] 5 points 4 months ago (2 children)

    I have to be honest, I don't know how any investor read their S1 and still wants to put money in this thing.

    I mean, I know Carlin said it's a big club and you're not in it, but fuck. They're all in on it.

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