Hedge funds trimmed or exited positions in Apple and other major U.S. technology stocks and, in some cases, added bearish bets just days before SpaceX’s highly anticipated public debut, according to a JPMorgan note.

As shares of the “Magnificent Seven” — Nvidia, Apple, Amazon, Alphabet, Meta, Tesla and Microsoft — slipped more than 2% this week, data showed funds dialing back risk exposure in the sector to make room for Elon Musk’s rocket company, which is set to list Friday at a targeted valuation of $1.77 trillion.

The moves highlight how even the most crowded trades on Wall Street are being reshuffled in anticipation of what could be one of the largest IPOs in history.

Reuters:
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Hedge funds sold out of the biggest U.S. tech stocks, and some even added bearish positions, according ​to data from a JPMorgan note late Thursday, just ‌before SpaceX (SPCX) was set to go public on Friday.

Shares in the “Magnificent Seven” — a group that includes some of the biggest tech names on Wall Street, namely ​Nvidia (NVDA), Apple (AAPL), Amazon.com (AMZN), Alphabet (GOOGL), Meta (META), Tesla (TSLA), and Microsoft (MSFT), have ​all declined since last Friday.

The Roundhill Magnificent Seven ⁠ETF, which tracks these stocks closely, declined over 2.4% since ​June 5, with some analysts saying investors were clearing their decks in ​order to prepare for the debut of Elon Musk’s Space X on Friday.

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MacDailyNews Take: The real reason behind Apple’s selloff wasn’t so much about Siri AI or anything else shown at WWDC. It was to take profits near an all-time high to free up cash to get in on SpaceX’s IPO.

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