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energy123 3 hours ago

and Meta saying they want to issue. Combined with the IPO scramble there's a lot of dilution and raising hitting the same sector in a very short period of time. Can the public markets pony up the cash in the short timeframe? It seems investors said no, or at least the uncertainty was high enough that they trimmed the risk.

JumpCrisscross 3 hours ago | parent [-]

> Can the public markets pony up the cash in the short timeframe?

Yes, very easily, American households alone plop a few hundred billion to over a trillion dollars into the stock market every quarter. Whether investors want to is another question. (The answer, at least to the tune of $75bn for SpaceX, seems to be yes.)

energy123 2 hours ago | parent [-]

What I mean is that investors don't want to pony up the cash at current market prices. They want a discount. Then they will pony up the cash

Just like creditors demand higher rates on investment grade bonds, investors are demanding a higher risk premium if they're going to be expected to keep piling in cash to this particular sector that's diluting and raising.

JumpCrisscross 2 hours ago | parent [-]

> investors don't want to pony up the cash at current market prices

I don't think anyone can say this until the IPO goes out. Right now, all we're seeing is discount rates being adjusted market wide in anticipation of a rate hike.