Mega IPOs: the impact on liquidity and the S&P 500

Historical statistics show that, contrary to popular belief, the S&P 500 index actually rises after mega IPOs, with liquidity exiting before, not after.

By the SpyStocks desk · · 1 min read

We also promised you a bonus:

So here's a truly amazing statistic

What happens with liquidity during mega IPOs?

It is generally thought that large IPOs are negative for the market,

You've probably read in many places about the risk of this large IPO due to a massive capital outflow that wants to enter SpaceX

But here is the statistical data that seemingly refutes this theory

Historically, the S&P 500 index fell by 1% in the month before mega IPOs (BABA, GM, META, V), but then rose by 5% in the month after.

Meaning, liquidity exits before the IPO, not after,

And statistically, after the capital outflow, the market actually stabilizes and rises by 5% on average!

Good intel travels.

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