Jun. 12 at 5:39 AM
$GOOGL ! save your money!
1. The “Buy the Rumor, Sell the Fact” Effect
For weeks, the market has been rising, and technology and chip stocks have enjoyed crazy momentum in preparation and anticipation for this IPO. Now that the IPO is actually happening and the big money is in, many institutional investors and short traders may be taking advantage of the peak to lock in profits. Massive “profit-taking” sales immediately after such a peak event are a very common phenomenon that can ignite declines.
2. Liquidity Drain
When a company raises an unimaginable amount of
$75 billion at once, that money has to come from somewhere. Hedge funds and institutional entities have been forced to sell existing positions in other leading technology stocks (like Nvidia, AMD, Microsoft, and others) to free up cash to buy SpaceX shares. This diversion of billions is creating selling pressure on the rest of the market.
