Topic: Green Shoe

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Flim Flam
Episode 1877 51:25 - 52:49

1877: Flim Flam

SpaceX IPO, Green Shoe Tranche, and AI Bubble

The SpaceX IPO is analyzed for its technical execution, specifically the use of a "green shoe" option—an extra tranche of shares sold if the price remains stable for 30 days. Morgan Stanley acted as the stabilizer for the $11 billion offering, which notably featured zero fees for the underwriter. The discussion suggests that while the rocket business is thriving, the broader AI investment bubble may be starting to "pop."