Keep pulling the thread on Barry Ritholtz.
SpaceX completed its IPO debuting at a $1.75 trillion valuation, which was described as the largest in history.
Following its IPO, SpaceX's valuation reached over $2.5 trillion, making it more valuable than Amazon and briefly more valuable than Microsoft.
SpaceX has a public float of only $75 billion, which is a small fraction of its total valuation.
Only 4% of SpaceX's shares are publicly traded, and NASDAQ changed its inclusion rules, which previously required a 10% float, specifically for the company.
The Shiller PE ratio is currently at 42, its second-highest reading ever, with the only higher point being approximately 44 in 1999 before the dot-com crash.
The SpaceX IPO was large enough to pull capital out of major tech stocks like NVIDIA, Microsoft, Amazon, and Apple.
Barry Ritholtz predicts an eventual market downturn of 20% to 35% is coming.
The S&P 500 experienced 582 all-time highs between 1982 and 2000.
The S&P 500 has climbed 25% in the past year and achieved 23 new all-time highs.
Barry Ritholtz predicts that the true market value of SpaceX will not be clear until sometime in 2027, after more of its shares become publicly traded.
The inclusion of SpaceX in the NASDAQ 100 is estimated to create between $10 billion and $50 billion of incremental demand for its shares.
In 2020, Cathie Woods's ARK fund, which had a large position in Tesla and Bitcoin, returned 160% for the year.