points by levocardia 3 days ago | 0 comments
So you'll be shorting the stock, I take it?
[–] cmiles8 3 days ago
A lot of people will, if this IPO actually happens. But as is frequently pointed out a short is a market bet not a bet against the company and the market remains wild and irrational. You can be right about the company ultimately failing and still lose your shirt on a short.
However the price of CDS on bonds is already a strong market indication of where the market thinks all of this is heading. And none of that looks good if you’re betting on the AI exuberance continuing.
[–] singron 3 days ago
The bond market and the equity market care about different things. E.g. if the company has a 10% chance of going bankrupt and a 90% chance of doubling its market value, then paradoxically its bonds will look bad and its equity will look good.
[–] dpz 3 days ago
When you've got companies like Tesla valued at what they're valued at. Shorting is pretty dumb.
[–] surgical_fire 3 days ago
Shorting is not the only way to protect yourself from a bad investment.
You can simply not buy shares in companies you think are on a doomed trajectory.
That said, depending on the IPO target price, I might short it.
[–] Computer0 3 days ago
You say this as if retirement accounts, and S&P500 ETF’s don’t exist and aren’t very common. Many people were forced into some amount of investment in spacexsi
[–] surgical_fire 3 days ago
Which is beyond the point. I was replying to someone that mentioned shorting Anthropic if you think it is a bad investment.
I presume they are not playing with shorting with your retirement account?
[–] reticulates 3 days ago
[–] wickedsight 3 days ago
This quote stops me from shorting pretty much anything.