Building Financial Habits
episode
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
18 min
3 speakers
5 chapters
transcribed 2 months ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Hey, this is Allie, and thanks for listening to the show. Give us a five-star review where you listen and share this episode with someone who might need to hear it. Now, enjoy the show.
Welcome back, ladies and gentlemen. You're listening to another edition of DIY Money. DIY Money. Is it weird that when we are on video, we wear the same outfit for multiple episodes?
Probably. Yeah, probably a little strange. We need to bring a change of shirt.
We probably do that.
I probably need to bring, like, what you're wearing, too, a polo. I kind of look, like, stodgy.
What is the episode about and who are the hosts?
I am trying to not wear a button down. There's two things I'm trying to do in my life right now. Never wear a button down again. Really? That won't happen. I mean, I have meetings and such that I need to dress up for. I actually still have to wear a tie on occasion, if you can believe it.
Brutal.
Yeah, it's terrible. And then, as you've noticed, I like to wear sneakers. Wow. Yep. That's what I'm trying to do.
I know you hate this word, but you're retired.
The trendsetter. I hate that word, but I am definitely in a different state of mind, that's for sure.
You're in a new field.
Uh, you know, before we talk about any other housekeeping things, I think it'd be wise because we talked about it. We wrote a blog about it that we give a SpaceX update.
Oh my. Yeah. I love it.
SpaceX, uh, close of business today. It is July the 6th, uh, underneath the opening print of $150 a share. $150 a share, so those of you who don't recall, if you were participating in the IPO, so you actually could get IPO shares, $135 a share was the IPO price. However, it opened for trading at $150. I was actually shocked on that podcast. I talked about it. I thought it would open much higher. I was told, as we all were, that this thing was five times oversubscribed, which usually translates into unbelievable demand on the open, which therefore creates a massive gap. That did not happen. The demand flowed in the next few days, which in my opinion was crazy, but it did. The stock ran as high as 220 or something like that.
And it's now back down to 150.
Yeah, it's had kind of a round trip. It has been very, the word is volatile, meaning up and down. It's had really quick ups and downs. And one of the things that I've talked about to a lot of clients about SpaceX is people have only a certain amount of their portfolio they're willing to put at risk. risk to put into ups and downs, volatile things. And I think we're starting to realize that a little bit with SpaceX. You're also starting to realize this might not be as easy as everybody thinks, right? When we were getting all those news headlines and all of that information, people were sending me messages and notes and saying, we need to get in this. This is First of all, I backed them up and said, okay, you realize that would then make SpaceX more valuable than Microsoft, Amazon, these massive companies that have a long runway.
And at the same time, you're saying that a stock that was priced at $135 a share is That SpaceX gets the derivative of. They get the shares that are bought. So a bank goes out and sees who can buy it for a certain price. They then sell it to individual investors and SpaceX gets that money. You think if SpaceX couldn't get $300 a share for the money that they're selling on their shares, they wouldn't do it?
Yeah, that's actually interesting you say that because a lot of people think that a bad IPO is an IPO that goes down. That certainly is the case. But a bad IPO, initial public offering, is actually one that trades extremely higher than the IPO price itself for that reason. That means the bankers underestimated the demand. I think... Personally, the IPO of SpaceX was wildly successful for what it was trying to do, which was sell a portion of the shares and so on and so forth. The stock has been added to the NASDAQ, which is interesting. If you own a QQQ ETF or QQQM or any of the NASDAQ 100 ETFs, you own now SpaceX.
How did the hosts react to SpaceX's IPO performance and volatility?
It's It theoretically should have created some additional demand. It hasn't yet. So it'll be really interesting to see.
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:02–0:30
2
What is the episode about and who are the hosts?
0:30–4:26
3
How did the hosts react to SpaceX's IPO performance and volatility?
4:26–13:54
4
Why might an IPO that opens way above its price be considered 'bad'?
13:54–18:24
5
Which other big tech IPOs could be affected by SpaceX’s market debut?
18:24–18:51