SpaceX’s public offering has all of the hallmarks of a pump-and-dump scheme, using a “staggered lock-up” schedule that allows insiders to sell off shares much earlier than most other publicly traded firms—enabling them to cash out while the stock is still grossly overvalued. This gambit is also called a “bagholder” scheme, as retail investors are left holding a rapidly depreciating asset.
While most IPOs prevent insiders from selling shares for the first 180 days of public trading, SpaceX uses an expedited schedule that allows most insiders to sell much sooner—selling off overvalued shares to retail customers.
While this pump-and-dump began with retail consumers who bought shares on the first day of public trading, these massive wealth transfers are being thrust upon working people whether they like them or not, as Musk successfully negotiated new rules that fast-track SpaceX’s inclusion in major index funds, including the Russell 1000 and NASDAQ funds—transferring rapidly devaluing stock from SpaceX insiders to working people’s retirement accounts.
But none of this was explored on CNBC the day of the SpaceX IPO launch. FAIR could find not a single guest or anchor that mentioned that “Elon Musk’s rocket company” valued the potential for SuperGrok X subscriptions at more than twice the total projected TAM for the space industry, nor that SpaceX’s TAM is based on a scenario in which business-facing Grok controls all e-commerce—and certainly not that the IPO would essentially serve as a massive wealth transfer from retail investors to SpaceX insiders.
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Every day, dozens of guests representing various companies advertise their stock on CNBC for retail consumers, who trust the judgment of their favorite program hosts to give completely uncontentious interviews, essentially constituting a series of infomercials, rather than actual financial journalism. FAIR has criticized CNBC on this basis for decades.
So when CNBC invites SpaceX insiders with vested interests to pump the valuation of their stock on the air shortly before dumping it on retail consumers, it seems obvious why even the most critical host cannot alert his viewers to what is really going on: because CNBC’s reporting exists to boost stock, rather than protect consumers.
Man if you do your investing based on what Cramer says you deserve to have your wealth transferred lol
the cramer-etf actually does better than the market last i checked
Musta been a few years ago, since the Cramer ETF shut down.
https://medium.com/@luuisotorres/jim-cramers-recommendations-a-six-year-analysis-e8a59675135e
Looking up a handful of studies seems to indicate that in days following Cramer’s recommendations, stocks tend to outperform, but in the long term, they’re pretty average.
Seems like studies are a little conflicted about if he’s impacting the price in the short term due to his influence, and if he’s actually better than the market. But it certainly doesn’t appear to have an obvious answer.
It’s a pretty brilliant grift. With that reach you are basically manipulating the market just enough to be able to consistently profit. Tiny little happy accidents over time.
I keep hearing about this Cramer fella, and I still have no idea who he is.
He’s like if a weatherman and a used car salesman had a baby somehow
Jeaus christ that is just a fantastic summary!
Well if the weather man was placing bets on the weather then telling everyone the opposite of the weather and somehow still being a weatherman, sure.
You mean to say that insiders get to do trading that nobody else gets to do? I think there’s a term for that, but I can’t quite place it.
I think they call those perks now. Like bribery is just a donation.
Someone should tell trumps DOJ and they’ll get right on top of enforcing that. Tood Blanche runs DOJ.
This guy: https://newrepublic.com/post/210613/epstein-survivors-todd-blanche-lying-oath-congressHe also worked hard to try to create trumps slush fund to compensate the insurrectionists, has run cover for epstein, invested in trumps cryptocurrency scam, has a pending ethics case against him in the NY state bar looking to have him disbarred, uses the DOJ to target trumps political rivals, personally visited Ghisalaine Maxwell in prison, against policy at DOJ. The list goes on and on.
I no longer care about the individual items on The List. I am mentally preparing myself to make extremely difficult decisions in the very near future.
yeah same. I also struggle to care. I still read and post but the news I am responding to no longer has any shock value to me. Somehow still bothering to call it out means something, but I’m not sure what anymore.
Well said.
It’s “the president’s thing.” He’s spent the last 18 months telling the world that this sort of behavior is acceptable. The world he wants us to live in is a “scam or be scammed” sort of world.
I have a coworker who went all in on the spacex IPO. I told him it smelled like a rug pull. He’s also an Elon fan. Wonder how he’s doing now.
You should ask and report back.
He’s probably still feeling fine if he bought right away or got in on the $135 IPO price, its when all the locked shares can start selling its going to properly collapse, so not quite yet.
lettuce know please 🥺
Probably a poor Elon fan
using a “staggered lock-up” schedule that allows insiders to sell off shares much earlier than most other publicly traded firms—enabling them to cash out while the stock is still grossly overvalued
But hey, anyone can make it as long as they work hard, though.
It’s all a scam.
Yes, but at this point it all is
