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SpaceX is worth less than half of its $1.75 trillion IPO target, Morningstar says (www.cnbc.com)
submitted 4 months ago by [M] to c/technology@beehaw.org
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[–] 17 points 4 months ago (6 children)

Does anyone know if there's a way to identify which of my 401k plans will be buyinh this stock once it gets added to the indexes? I would love to not have money in those index funds but don't know how to tell.

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  • [–] 6 points 4 months ago (5 children)

    I wouldn't worry too much. Index only update every quarter at most. They won't be buying in at the IPO.
    It'll also be a very small portion of their holdings when they do buy in.

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  • [–] 10 points 4 months ago (3 children)

    Look up how much of your 401K is in nvidia stock right now. It may surprise you.

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  • [–] 4 points 4 months ago* (2 children)

    Nvidia has a current market cap of $5.2T (largest in the world) making it 7.6% of the S&P500. I'm sure that's the point you were trying to make, but we aren't talking about Nvidia.

    If we assume Morningstar is wrong and SPCX realy is worth $1.8T, then it will become roughly 2.6% of the S&P. If they're right, it'll be closer to 1.3%.

    In my 403(b) I'm 50% international, 40% extended US market, and only 10% S&P500. I've been expecting the AI bubble to pop this year, so I moved my money away from Nvidia and the Magnificant 7. It's been good for me so far. YTD I'm up 14.2%, while the S&P is up 11.7%. Nvidia is currently only 0.78% of my portfolio.

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  • [–] 2 points 4 months ago

    I think if you unpack the international and you're in index you're going to find yourself still heavily invested in AI (TSMC for instance).

    I don't have the option in my 401K to choose to invest in sectors. My only real options when it comes to equities are for instance, large cap vs mid cap. Mid-cap would exclude nVidia but I bet it'll just end put putting me in even trashier AI stocks. As the bubble has heated up I've slowly been moving my retirement out of equities because there's no real way for me to select "non-AI equities." I'm down to about 20% equities now, down from 80% before I started messing with it.

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