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Don’t blame passive investors if SpaceX is mispriced
SpaceX has debuted on the public market with a valuation exceeding $2 trillion despite significant cash burn. Critics argue that passive index funds are driving the stock to irrational prices. Others contend that active stock pickers, not index funds, are responsible for capital misallocation.
What changed
Recent reports detail the market reaction to the SpaceX IPO and the resulting debate over index fund influence.
Live updates
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Debate Erupts Over SpaceX Valuation and Passive Investing
confidence 70%SpaceX has debuted on the public market with a valuation exceeding $2 trillion despite significant cash burn. Critics argue that passive index funds are driving the stock to irrational prices. Others contend that active stock pickers, not index funds, are responsible for capital misallocation.
Still unconfirmed:
- SpaceX shares rose roughly 50% in their first days of trading.
- The company has a valuation floating past $2 trillion.
- SpaceX is burning through billions in cash.