Excess Returns · Friday, July 3, 2026
The recent IPO of SpaceX was highly anticipated, with its market performance described as "going up like bananas" initially, followed by a significant drop. Jack Forehand noted that "no one cares about the fundamentals of SpaceX right now," with initial price movements driven by anticipated index flows rather than intrinsic value. Andy Constant warns that the technology sector, particularly AI, might be facing an oversaturated market where "there's just not enough pie for all of them to be successful."
“And they basically promise their their in their S1 that their TAM was space and time. So I'm gonna blame the last month, feeling like the last quarter, if not the last quarter century on we finally IPO'd space and time. Is that a get out of jail card for this?”
“It priced, it opened higher. It then proceeded to go up like bananas for the next two days. And then basically fell, like a misfit rocket.”
“There's too many people that too many stocks that expect massive earnings growth, and there's just not enough pie for all of them to be successful.”