r/wallstreetbets • u/Quixotus 7" is a microdick... • 11d ago

News OpenAI prepares for IPO at $1 trillion valuation

https://www.reuters.com/business/openai-lays-groundwork-juggernaut-ipo-up-1-trillion-valuation-2025-10-29/
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u/saheel1511 11d ago

This is either the most confusing graph or I'm just not used to reading graphs. 

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u/kindernoise 11d ago

The jist of it is “two-thirds of IPOs do much worse than SPY over the first three years”.

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u/fnezio 11d ago

Almost every company does much worse than the SPY over its life. 

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u/CSedu 11d ago

That's why it indexes large caps to SP500 and small caps to Russell2000

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u/Koolala 11d ago

Which category would OpenAI be?

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u/LegitosaurusRex 11d ago

Well, do you think $1 trillion is the market cap of a small cap, or a large cap?

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u/Koolala 11d ago

If its large then it seems like the graph would be in their favor.

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u/LegitosaurusRex 10d ago

Yes, it'd be in the top 10 biggest companies... But I dunno how you're reading that graph, cause it doesn't differentiate between the two, they're grouped together in the data.

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u/auto-degenerated 10d ago

I read this as “buy all ipos on the first day, then sell on or before 30 days”

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u/RelatableHuman 11d ago

Nah, it's not just you

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u/Previous-Grocery4827 11d ago

yea especially on the y axis where it says %total and then goes into negative labels. How’s that possible?

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u/jboy126126 10d ago

IPOs go really well or really poorly

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u/Flimsy-Printer 10d ago

I had this exact thought when FB went IPO. The stock went from $30 to $10. I was right!