Key insights
- The article suggests potential overvaluation risks associated with SpaceX and OpenAI IPOs due to forced buying by passive investment funds tracking the NASDAQ-100 and S&P 500. This could negatively impact returns for investors in these funds if the IPO valuations are unsustainable. The author suggests monitoring index rule changes and company actions related to the IPOs.
https://www.channelnewsasia.com/business/spacex-aims-file-ipo-soon-week-information-reports-6015026
SpaceX is about to IPO. If you have money in passive investment funds, watch this very carefully, and keep track of the upcoming NASDAQ-100 and S&P500 rule changes, because it's likely that passive investment funds are going to be forced into buying SpaceX shares at massive overvaluation.
Same for OpenAI's IPO, which is predicted to happen this year as well. OpenAI is already making moves towards IPO by killing Sora, and supposedly "pivoting" to enterprise use to try and justify massive valuation.