Images of SpaceX rockets are displayed on screens in Times Square after the launch of the company’s initial public offering on June 12. (Angela Weiss / AFP via Getty Images)
Investors were eager to trade SpaceX options on their first day of trading Tuesday as the company’s shares gained almost 5% to $201.80, putting them 50% above the initial public offering price of $135 last week.
CNBC's Jim Cramer said Tuesday that investors flocking to SpaceX are betting on Elon Musk's ability to create transformative businesses — not the company's current earnings power.
"The stock is called SpaceX, but it might as well be called Elon Musk," the "Mad Money" host said.
SpaceX has quickly become one of the world's most valuable companies following its blockbuster IPO on Friday. Shares surged almost 5% Tuesday, pushing the rocket company's valuation above several technology heavyweights, including Amazon, and briefly surpassing Microsoft. The rally has intensified questions about whether SpaceX's roughly $2.5 trillion market value is justified.
Cramer argued, however, that conventional valuation methods miss what many investors are buying.
"There is no way this company, which could see losses for many years, deserves such a high valuation on its own. It only gets there because it's run by Musk," he said.
While Musk recently projected that SpaceX could generate $1 trillion in annual revenue by 2030, Cramer argued that the stock's appeal extends far beyond any single forecast. Instead, he thinks investors are assigning value to Musk's track record of building category-defining businesses and his ability to turn ambitious ideas into commercial opportunities.
"When you buy SpaceX here, you're really buying Elon Musk's brain," Cramer said. "I think the cult of Musk is for real."
To support that view, Cramer pointed to the breadth of SpaceX's businesses and growth initiatives, including its Starlink satellite internet network, reusable rocket operations, and long-term data center ambitions. Adding to that opportunity set, SpaceX announced Tuesday that it will acquire AI coding startup Cursor for $60 billion in stock, deepening its push into artificial intelligence and software development tools. While the company currently operates at a loss and many of these opportunities have yet to fully materialize, Cramer said they could ultimately become significant drivers of future growth.
Cramer suggested that some investors view SpaceX similarly to how previous generations viewed Berkshire Hathaway under Warren Buffett — a way to gain exposure to a business leader they believe can continue creating value for decades.
While skeptics continue to question the stock's valuation, Cramer noted that betting against the rally has been costly so far.
"While you're sitting here trying to justify SpaceX's valuation, the buyers are relentlessly pushing it up, and I bet they keep going," he said.
Space Exploration Technologies (SPCX +4.36%) stock saw another day of strong gains in Tuesday's trading, with the stock rising 4.8% in the daily session. Meanwhile, the S&P 500 fell 0.6%, and the Nasdaq Composite was off 1.2%. Notably, SpaceX stock had been up as much as 17.2% earlier in the day's trading.
Bullish momentum for SpaceX has continued following the company's initial public offering (IPO) on June 12, and news that the tech specialist has finalized a $60 billion deal to acquire artificial intelligence (AI) company Cursor has spurred positive valuation moves. In addition to general excitement surrounding the stock, recent comments from CEO Elon Musk and investment analysts have helped push the company's share price higher.
Image source: Getty Images.
SpaceX soars on AI news SpaceX stock has been red hot following its IPO last week, and the company's share price moved higher today following the announcement that the company had secured its $60 billion acquisition of Cursor. While SpaceX is best known for its rocket launching and Starlink mobile and internet communication services, the company has actually positioned AI compute services as central to its long-term growth strategy.
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What's next for SpaceX? Cursor provides coding and other AI technologies that look poised to help SpaceX increase its competitive positioning compared to Anthropic and OpenAI, and the closing of the deal seemingly represents another promising strategical step for Elon Musk's company. SpaceX has identified AI compute as its single biggest growth market, and integrating Cursor could help the company accelerate its expansion ambitions. SpaceX looks richly valued after its post-IPO rally, but it's possible that the tech company will wind up delivering sales and earnings growth that pave the way for continued valuation growth.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways SpaceX has been one of the most exciting IPOs ever, with its performance since its debut notably strong. Outside of SpaceX, Anthropic is another huge IPO that investors can't overlook. IPO activity post-pandemic has fluctuated significantly, primarily driven by economic uncertainty, rising interest rates, and inflation, all of which have impacted investor sentiment.
But the tide has shifted in a positive direction over the past few years, with 2026’s lineup, which includes SpaceX (SPCX - Free Report) and Anthropic, likely the most exciting year we’ve seen in decades concerning debuts.
Don’t Forget About AnthropicAnthropic has officially submitted its confidential draft S-1 prospectus with the SEC, setting up one of the largest tech IPOs in history. The company is expected to target a valuation clearing $1 trillion, building on the momentum of a massive Series H funding round that valued it at $965 billion.
The public listing is anticipated to potentially come as early as this fall, likely reflecting the biggest market story of the back half of 2026. The company's enterprise-focused AI ecosystem is its primary growth engine, with annualized revenue skyrocketing to a staggering $47 billion.
Notably, Anthropic is solidifying its position as a dominant force in corporate AI and critical infrastructure. Driven by the commercial success of enterprise tools like Claude Code, the company is scaling aggressively. To sustain this explosive compute demand, Anthropic has also secured a massive $15 billion-a-year data center lease with SpaceX alongside cloud partnerships with Amazon and Google.
SpaceX SoarsSpaceX (SPCX - Free Report) has officially debuted, with shares soaring post-IPO. The appetite for exposure among investors has been notably fierce, as displayed by the recent price action. The company's Starlink satellite internet segment is its primary profit engine, with over 10 million subscribers.
Notably, SpaceX is aggressively transforming into an AI and infrastructure giant. After absorbing Elon Musk’s AI startup xAI in a stock-based deal earlier this year, SpaceX spent a staggering $12.7 billion on AI infrastructure in 2025 alone. It is also partnering with Tesla on a chip-making project called ‘Terafab’ to build its own AI hardware.
By combining orbital dominance with cutting-edge artificial intelligence, SpaceX is positioning itself as more than just a space exploration company. It is positioning itself as the infrastructure layer for the future of computing, both on Earth and beyond.
Buying AI coding agent Cursor in a $60 billion deal and renting out data-center capacity gives the company a launchpad to land more enterprise customers.
SpaceX options on their first day of trading showed about a 15% chance for the stock to rise by 50% and a similar possibility that it loses half its value in the next three months, according to Susquehanna.
The stock saw the fifth-highest call volume of the day, Susquehanna strategist Chris Murphy wrote in a note Tuesday.
"The largest trades increasingly looked like hedges tied to future supply risk," Murphy wrote. "Upside calls reflect demand for another sharp move higher, while downside puts reflect concern around lock-up supply, valuation risk, and the possibility that the initial post-listing enthusiasm fades. The result is a difficult trading setup. The tails look too expensive to buy, but they also look too dangerous to sell."
SpaceX's stock rose for another day after its initial public offering on Friday — it's up about 50% from its IPO price — and its market cap has surpassed Amazon and is close to Microsoft's valuation. The options reflect a vigorous debate about whether the company can live up to the initial enthusiasm.
Current pricing implies about a 15% probability that SpaceX rises another 50% by September, while also implying roughly a 13% chance the stock falls 50%, Murphy wrote.
Investors are "trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," he added. "I think that that's going to take at least a couple of years."
EchoStar SATS has a sizeable stake in the newly public SpaceX (SPCX) – one that’s being largely underappreciated by market participants, says New Street’s senior analyst David Barden.
In a recent note to clients, Barden raised his price target on the telecommunications firm to $165, indicating potential upside of an exciting 40% on its previous close.
The bullish call arrives at a time when EchoStar stock is struggling to reclaim its year-to-date high, currently down some 15% versus its peak in late May.
David Barden is positive on SATS for one simple reason: its stake in SpaceX alone makes it worth more than the market is giving it credit for in 2026.
Following the recent sale of wireless spectrum to AT&T and SpaceX, EchoStar owns roughly 262 million shares of billionaire Elon Musk’s artificial intelligence (AI) and space infrastructure giant.
Valuing SPCX shares at $161 each (the price at which they closed their debut session on Nasdaq), that stake alone is now worth over $42 billion.
But SATS shares at nearly $121 at writing are enormously “discounting” the SpaceX exposure – pricing the behemoth at a much lower $86 only, the New Street analyst told clients.
“We believe owning SpaceX stock via EchoStar at these levels is an attractive proposition.”
SATS’ fundamentals remain strong in 2026Beyond its SPCX holdings, EchoStar shares remain attractive, as the company maintains a core telecommunications infrastructure that generates steady cash flow.
It exited Q1 with over 6 million pay-TV subscribers, comprising 4.8 million on Dish TV and 1.79 million on Sling TV, as well as its Boost Mobile brand.
That said, Barden actually adjusted estimates for SATS’ legacy assets amid ongoing FCC spectrum auctions.
On Tuesday, he trimmed the AWS-3 spectrum valuation to $3 per MHz-POP from $3.62, reducing the expected value of EchoStar’s standalone business from $10 billion to about $8.3 billion.
From an investment perspective, what’s also worth mentioning is that SATS stock looks headed to now challenge its 20-day moving average (MA), with a clear break above $124 expected to boost bullish momentum in the near-term.
Moreover, much like New Street Research, the derivatives market is keeping bullish on EchoStar for the remainder of 2026, especially since it isn’t particularly expensive to own at about 2.2x sales.
According to Barchart, the put-to-call ratio on options contracts expiring mid-October sits at 0.24 currently, indicating a very strong bullish skew.
Crucially, while not as bullish as David Barden, other Wall Street analysts remain constructive on EchoStar for the next 12 months as well.
The consensus rating on SATS sits at “Moderate Buy” currently, with the mean price target of $143 signaling potential upside of nearly 20% from here.
Elon Musk's Space Exploration Technologies Corp. (NASDAQ:SPCX) has completed its initial public offering (IPO) and now all eyes are on the company's next move.
Musk's Mars AmbitionsOne of Musk's goals has been to reach Mars, colonize it and build a city on it. This goal was also part of a performance target for the world's richest man, as revealed by SpaceX's IPO paperwork.
Here's What Prediction Market Is SayingWhile Musk has made reaching Mars one of his biggest goals, prediction markets are not very confident about the trillionaire being able to achieve it.
Data from Kalshi, a federally authorized betting platform, shows that over $101,000 has been bet on the contract "Will Elon Musk visit Mars in his lifetime?"
According to bettors, the probability of Musk reaching Mars in his lifetime is just 13%.
Disclaimer: Kalshi and Benzinga have an existing data collaboration agreement.
What Will Musk Get?If Musk is able to help SpaceX establish a permanent human settlement on Mars with at least one million residents, along with the company hitting a $7.5 trillion valuation, he stands to receive 200 million super-voting restricted shares.
The goal is still a long time away, with Musk himself admitting that it was a long way off.
In February, Musk revealed that SpaceX's Mars timeline was slipping by "five to seven years," so the company could focus on lunar missions first.
Prediction Market Bets On Starlink IPOJust days after SpaceX wrapped up its IPO, the prediction market is now betting on Starlink's IPO. Bettors have placed a very low probability on Starlink going public before June 2027.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock.com
Market News and Data brought to you by Benzinga APIs
Space Exploration Technologies (SPCX +4.36%) blasted off on its market debut on Friday, climbing 19%, then advanced by an additional 19% on its second trading day. All of this has brought SpaceX to a market cap of $2.5 trillion, placing it among the world's largest tech companies.
The SpaceX IPO was the biggest ever, as the company raised $75 billion. But the operation just became even bigger. The company's underwriters exercised an overallotment option early this week, allowing them to buy more than 83 million extra shares -- and this operation brought the total raised to $85.7 billion.
It's clear that many investors are excited about SpaceX, and this could be due to the fact that it operates in the three exciting growth areas of space, artificial intelligence (AI), and connectivity -- and it may also be linked to the idea that Elon Musk, known for huge ambitions, leads the company. Considering all of this, is SpaceX starting an Nvidia-style run? Let's find out.
Image source: Getty Images.
A 1,000% gain So, first, let's zoom in on the performance of Nvidia, the world's No. 1 AI chip designer. The company has seen earnings soar in recent years thanks to this dominance, and as a result, investors have piled into the stock. Nvidia shares have advanced 1,000% over five years. The company represented one of the best ways to bet on the AI boom, and this bet has proven itself to be a winning one.
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Unlike SpaceX, however, Nvidia's share price didn't skyrocket right out of the gate. The company went public back in 1999, but for many years, the stock traded for just a few dollars. It only took off within the past few years amid the excitement about AI -- and as Nvidia's revenue and profit surged.
SpaceX isn't a brand-new company. Like Nvidia, it's been around for decades developing its technology, but so far, its financial picture looks quite different from that of the AI chip giant. While Nvidia is generating more than $215 billion in annual revenue and $120 billion in net income, SpaceX's investments to support its technology developments -- particularly in the AI business -- pushed the company to a loss last year. In 2025, SpaceX's capital expenditures in the AI unit reached $12 billion, and though the company reported total revenue of $18 billion, it finished the year with a loss of $4.9 billion.
Starlink's key role SpaceX is earlier along the growth path than Nvidia, and it's still not clear if and when it may reach certain goals -- such as the development of data centers in space and the transport of people and materials to Mars. Right now, the company's connectivity business, Starlink, is driving revenue, as it brought in $11.4 billion last year on that total of $18 billion. Starlink offers satellite-based internet services and has seen its subscriptions explode higher from customers around the world. It's grown subscriber numbers from 2.3 million in 2023 to more than 10 million as of this March.
But SpaceX's goals are so far-reaching and depend so greatly on innovation and the development of new technology that it might take quite some time for the company to attain them -- and generate significant levels of revenue and profitability. So it's unlikely that the earnings picture, alone, will drive stock performance in the quarters to come.
That said, many investors are buying shares of SpaceX because they believe in the company's ability to reach certain milestones over time -- and they aim to get in early on the stock so that they might fully benefit down the road. It's a risk, and that makes SpaceX a buy for the aggressive investor -- but not for the cautious investor.
Now, let's consider our question: Based on all of this, could SpaceX be starting an Nvidia-style run? In the coming weeks and even months, it's possible. Investors are excited about SpaceX's programs and the possibilities that eventually could result in explosive growth. But if the upcoming earnings reports disappoint or if the company faces any technology setback, it could weigh heavily on stock performance. It's important to keep this in mind before rushing to buy this hot stock post-IPO.
SpaceX’s new options market exploded on Tuesday, giving traders a fresh and far riskier way to bet on the rocket company’s post-IPO surge.
The contracts began trading only days after SpaceX’s blockbuster Nasdaq debut, and demand was immediate.
Call options, which profit when a stock rises, dominated early activity. But the pricing also showed something more complicated than simple excitement.
Wall Street is now bracing for a huge move in either direction, with traders seeing room for another sharp rally while also preparing for a painful reversal.
SpaceX priced its IPO at $135 a share last week, already making it one of the most closely watched listings in market history.
Since then, the stock has climbed roughly 50%, lifting the company’s market value past Amazon and briefly above Microsoft during Tuesday’s trading.
That speed matters, as normally, a stock needs time to settle after going public.
In SpaceX’s case, investors have rushed in almost immediately, helped by the company’s rare mix of space launches, Starlink, defence contracts, artificial intelligence ambitions, and Elon Musk’s personal following.
The rally has also created pent-up demand among investors who either received small IPO allocations or missed out entirely. For them, options offer another route in.
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell a stock at a fixed price before a set date.
A call is a bet on upside. A put is protection, or a bet, against downside. With SpaceX moving so fast, both sides have become expensive.
The scale of Tuesday’s options debut was striking. Around 1.8 million SpaceX options contracts changed hands, far above Meta’s previous first-day options record in 2012.
Calls outpaced puts, showing that bullish demand remained strong even after the stock’s dramatic run.
Susquehanna said SpaceX had the fifth-highest call volume of any stock that day.
Data from Trade Alert indicates that SpaceX options were the third-most heavily traded single-stock contracts overall, behind only Tesla and Nvidia.
“It’s unusual in history for companies to have options trade so quickly,” Mike Khouw, chief strategist at YieldMax ETFs, told Yahoo Finance.
“This is the third busiest single stock options contract trading today.”
The bigger story was not just volume. It was what the options prices implied about future movement.
Susquehanna estimated that the market was pricing roughly a 15% chance that SpaceX rises another 50% over the next three months.
It was also pricing a similar chance that the stock loses half its value over the same period.
That is what traders mean when they talk about “tails.” It refers to extreme outcomes at either end of the range.
In this case, the market is saying SpaceX could keep ripping higher, or crack sharply, and neither outcome looks remote.
Also read- SpaceX stock soars after IPO: Will it follow the Circle, Figma, Klarna path?
That two-sided risk is why derivatives strategists are sounding cautious, even as volume booms.
“The tails look too expensive to buy, but they also look too dangerous to sell,” Chris Murphy, a strategist at Susquehanna, said in comments cited by CNBC.
The line captures the problem facing traders. Buying options is costly because implied volatility is high. Implied volatility is the market’s estimate of how violently a stock may move.
But selling options can be even riskier, because a sharp move either way could leave sellers exposed to steep losses.
On the upside, call buyers are betting SpaceX can repeat the kind of momentum seen in Tesla during its most speculative phases.
On the downside, put demand reflects concern about valuation, lock-up expiry risk, and the possibility that early excitement fades once more shares become available.
Reuters reported that one large September trade appeared to hedge against the stock falling below $205, likely linked to future share supply after IPO lock-up restrictions ease.
Sceptics say the valuation already leaves little room for error.
“Investors rarely make money buying stocks valued at over 100x revenue,” short seller Jim Chanos told Yahoo Finance, while still acknowledging that Starlink is “a real business.”
SpaceX shares rose 4% in premarket trading on Wednesday, as the Elon Musk-led company extended a remarkable rally that's seen the stock surge around 62% since a blockbuster IPO on Friday.
Consistent gains for SpaceX this week pushed its market cap above Amazon on Tuesday, and it briefly surpassed Microsoft to become the fourth-largest company by valuation in the U.S.
SpaceX had a market cap of $2.65 trillion at close on Tuesday.
Investors are betting big on the promise of founder and CEO Musk's ability to drive long-term returns.
Musk posted on X on Sunday that the company "might be able to reach approximately" $1 trillion revenue in 2030.
SpaceX posted a $4.9 billion net loss in 2025, and it lost $4.28 billion in the first quarter of this year.
The lofty valuation for the company that has become dominant in satellites through its Starlink service and reusable rockets has raised questions about the its ambitious growth plans.
Investors are "trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," he added. "I think that that's going to take at least a couple of years."
SpaceX (SPCX +19.60%) stock makes history as the biggest IPO ever. The company's valuation is out of this world.
*Stock prices used were the afternoon prices of June 12, 2026. The video was published on June 14, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Australian mining billionaire Gina Rinehart has built major stakes in rare-earth and critical minerals companies alongside her iron-ore business. Philip Gostelow/Bloomberg/Getty Images Australian mining billionaire Gina Rinehart has made a major bet on Elon Musk's SpaceX that could lead to more than just a financial return.
Rinehart — Australia's richest person with a fortune estimated at $38.4 billion by the Bloomberg Billionaires Index — invested through Hancock Prospecting, her privately held mining and agriculture company.
Hancock Prospecting said Monday that it was allocated shares in SpaceX's initial public offering. The company did not disclose the size of its "significant investment," though The Wall Street Journal reported that the stake was worth more than $1 billion.
"In the future, we also see the possibility of mutually beneficial arrangements between SpaceX and Hancock Prospecting's significant critical minerals investments, as demand grows for the materials and infrastructure needed to support advanced technology," said Garry Korte, the CEO of Hancock Prospecting, in a statement. He described the SpaceX share allocation as "generous."
The comments point to potential opportunities between SpaceX and Rinehart's growing portfolio of critical minerals investments.
SpaceX has identified asteroid mining as a potential future opportunity, while NASA is supporting efforts to develop a commercial economy on and around the moon that could eventually include resource extraction.
Those ambitions could increase demand for the kinds of critical minerals that Rinehart has spent years investing in.
While Rinehart built her fortune through iron ore — the key ingredient in steelmaking — she has spent years investing in rare earths and other critical minerals.
Hancock holds major stakes in companies including Australia's Lynas Rare Earths and US-based MP Materials, two of the most prominent rare-earth producers outside China.
Rinehart, the executive chairman of Hancock Prospecting, described the SpaceX investment as significant.
"We are pleased to have received an allocation in what has been an extremely popular and oversubscribed IPO," she said in the statement.
"We see SpaceX as a rare business: led by a truly exceptional person, technically exceptional, and operating in sectors that are crucial, and with long-term potential," she added.
The investment gives Rinehart exposure to one of the world's most closely watched technology companies.
SpaceX began trading publicly on Friday after raising $75 billion in what was billed as the largest IPO on record. Shares surged nearly 20% in their first day of trading.
On Monday, SpaceX announced that the underwriters had exercised a greenshoe option, increasing the amount raised to more than $85 billion.
SpaceX closed nearly 20% higher on Monday, lifting its market capitalization to over $2 trillion.
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Huileng Tan is a senior reporter based in Singapore, covering markets, the economy, and commodities — and how they intersect with politics and society.She previously reported for CNBC, Dow Jones, ICIS, and The Wall Street Journal.Reach her at [email protected]. [en|zh|fr]
Shares of SpaceX (SPCX +19.79%) continued their ascent on Monday as the massively popular IPO stock completed its second day of trading as a public company.
Image source: Getty Images.
Green shoes SpaceX's initial public offering (IPO) was by all accounts a blockbuster. Elon Musk's space exploration juggernaut raised $75 billion dollars by selling over 555 million shares of its stock to investors at an IPO price of $135 per share.
Apparently, that wasn't quite enough. The investment bankers who helped underwrite SpaceX's IPO had the option to offer an additional 83.3 million shares as part of their so-called "Greenshoe" overallotment. By exercising this option, these bankers helped SpaceX raise a total of $85.7 billion, rather than the $75 billion originally reported.
More money, more growth? SpaceX's expansion plans are bold and multifaceted.
Reusable rocket ships? Check. Massive satellite communication network? Let's do it. AI data centers? Of course. A chipmaking factory? We're going to need one of those.
Better yet, let's put some of those data centers in space. Now we're talking. And let's colonize Mars while we're at it. Cool!
As you can see, there are audacious goal setters, and then there's Elon Musk. Investors love him for it.
For his part, Musk believes SpaceX's revenue could grow to a staggering $1 trillion by 2030. If he's correct, SpaceX's current $2.5 trillion market capitalization suddenly doesn't seem so irrational.
But there's a lot that needs to go right for Musk's growth forecast to come to fruition -- and it's sure to be a wild ride along the way.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SpaceX (SPCX +19.79%) wowed the market when it raised $75 billion in a record initial public offering last week. The stock climbed 19% during its first trading session, bringing the company to a market value of more than $2.1 trillion. That offers it a spot among the world's biggest tech companies, from the $1.5-trillion Tesla -- which, like SpaceX, is also an Elon Musk-led company -- to the $4.9 trillion Nvidia.
Investors rushed to get in on the company for exposure to its three growth businesses of artificial intelligence (AI), rocket launches, and satellite-based connectivity. The company has huge goals, from placing data centers in space to colonizing Mars. In a livestream on IPO day, Musk said the company was entering a major growth phase -- this suggests the coming years could be an important time for SpaceX and its shareholders. Some investors might also be eager to get involved in a company led by Musk, given his long track record of innovation and perseverance at the helm of Tesla.
Of course, right now, investors are wondering what may happen next in the near term following SpaceX's exciting market debut. Well, exactly 15 days post IPO, something big may happen. Let's check out what it means for you.
Image source: Getty Images.
An exciting event for retail investors So, first, let's consider the SpaceX IPO story so far. The company announced the operation earlier this spring and put an emphasis on making this a significant event for retail investors. While 5% to 10% of IPO shares generally are offered to these small non-professional investors, SpaceX aimed for as high as 30%. A source told CNBC that this figure settled at about 20%, which is still a considerable portion of shares.
Investors clearly were interested in the operation, as a Bloomberg report said it was oversubscribed by four times. This means there was significantly more demand than supply, suggesting that investors who didn't get in on the IPO may aim to buy shares in the first days of trading. All of this could push SpaceX stock higher in the coming week.
Now, let's consider the event that will happen 15 trading days after SpaceX's market debut: SpaceX will likely join the Nasdaq-100, thanks to the index's new fast-track process. Until just recently, an IPO company would have to wait three to 14 months for consideration. As part of the new procedure, if a company's market value places it within the 40 biggest companies in the index at around $121 billion or more, it may join. Valued in the trillions today, it's very likely that SpaceX will meet the criteria when the index evaluates the company. That happens on its seventh day of trading, paving the way for admission as of early July.
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Funds tracking the Nasdaq-100 Now, let's return to our question: What does this mean for you as a shareholder or potential shareholder? The addition of SpaceX to the Nasdaq-100 is positive in two ways. First, it means that managers of funds tracking the index must add the shares so that their funds continue to correctly represent the index's performance. This movement is likely to boost the shares as these investors place buy orders. So, this is good news for you if you already hold SpaceX stock.
Second, this means that in a few weeks, many more funds will be holders of SpaceX shares, offering investors another path to SpaceX exposure: You could buy shares of a particular exchange-traded fund that holds the stock. Many already exist -- longtime SpaceX supporter Cathie Wood of Ark Invest on IPO day added the stock to several of her funds. But a possible SpaceX addition to the Nasdaq-100 should further increase the fund selection for investors.
So, something big is likely to happen on SpaceX's 15th trading day, and it could offer current shareholders additional gains -- and offer newcomers more ways to get in on this technology and industrial giant.
SpaceX (SPCX +19.79%) completed the largest initial public offering (IPO) in history on June 12, initially raising about $75 billion, with proceeds later reaching $85.7 billion after underwriters exercised the greenshoe option. Shares priced at $135, opened higher, and closed their first day near $161 -- a gain of about 19%. And they've kept climbing. As of this writing, the stock trades near $188, up about 17% Monday.
That run has handed Elon Musk's rocket and satellite-internet company a market value of about $2.5 trillion -- enough to rank it among the 10 most valuable companies in the world, ahead of Tesla and behind only a handful of larger technology companies. For a business that lost money last year, that is an extraordinary price.
Here's a closer look at the case for buying SpaceX after its record debut, as well as the reasons for caution.
Image source: The Motley Fool.
A powerful catalyst SpaceX is still best known for landing rockets. But that stopped being the financial story some time ago. The company reported revenue of about $18.7 billion in 2025, up 33% from a year earlier, and the bulk of it came from Starlink, its satellite-internet service.
Starlink's 2025 revenue rose about 50% to $11.4 billion -- more than 60% of the company's total. Even more, it's profitable, generating about $4.4 billion in income from operations for the year.
And Starlink ended 2025 with about 9 million subscribers, about double the year before, and surpassed 10 million by the end of March.
The launch business is smaller and growing more slowly, with revenue rising about 8% in 2025, to about $4 billion. SpaceX flew well over 100 Falcon 9 missions during the year, though the bulk carried its own Starlink satellites rather than paying customers.
Then there's the company's more aspirational projects. In February, SpaceX absorbed Musk's artificial intelligence (AI) company, xAI, folding its Grok chatbot and a fast-growing compute business into the company. Further, SpaceX has floated an even bigger idea: putting AI data centers in orbit.
"We expect to begin deploying our orbital AI compute satellites as early as 2028," SpaceX said in its IPO prospectus.
Ultimately, though, Starlink will be the near-term driver for the business. Sure, these other ventures within SpaceX could eventually provide substantial operating cash flow for the rest of the business. But growth initiatives like these are unprecedented, and guessing their future impact on the overall business is difficult, if not impossible.
A staggering valuation Further, justifying the stock's valuation is not easy.
SpaceX lost about $4.9 billion in 2025. The drag was the AI segment, which posted an operating loss of more than $6 billion as it spent heavily on computing power. The space and connectivity segments, by contrast, were both profitable on a segment-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis.
There are some key risks to consider as well.
First of all, SpaceX listed with a dual-class structure that gives Musk about 82% of the voting power while he holds something closer to 40% of the equity. This means that public investors get economic exposure to the business, but little say in how it's run.
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And then there's the valuation.
SpaceX doesn't yet turn a profit, so there's no price-to-earnings ratio to anchor on. Measured against sales, the growth stock trades at a price-to-sales ratio far north of 100 -- a multiple that assumes Starlink keeps compounding and that the money-losing AI bet eventually pays off.
So, where could the stock go from here?
Over a multiyear horizon, I think the business has a real shot at growing into something far larger. Starlink is scaling quickly, already generating operating income, and the launch and orbital-compute opportunities are enormous. But at this price, the stock arguably already reflects years of flawless execution.
For now, however, I'd rather watch than chase the debut. After all, even a remarkable business can make for a poor investment if the entry price is high enough.
The SpaceX logo and a rising stock graph are seen in this illustration created on June 5, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
June 15 (Reuters) - SpaceX (SPCX.O), opens new tab will release quarterly and annual financial results, besides other material news, only through its website and social media account on X and not through wire distribution services, it said in a filing on Monday.
The move marks a departure from standard corporate communication practices, which typically involve newswire services like Business Wire or PR Newswire to reach a broad audience of investors and media outlets.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
SpaceX said it "encourages members of the investment community, the media, and others to follow" its investor relations page on its website and its X account to review the information disclosed through those channels.
Shares of the company closed around 19% higher on Monday. They were up about 2% in extended trading.
Earlier in the day, the company said its underwriters had exercised the "greenshoe" option to purchase additional shares, increasing the total proceeds from its initial public offering to $85.7 billion.
Elon Musk's rocket, AI and internet conglomerate had raised a record $75 billion through the sale of 555.56 million shares at $135 apiece, becoming the largest IPO in history even before the greenshoe option was exercised.
Reporting by Sriparna Roy and Jaspreet Singh in Bengaluru; Editing by Anil D'Silva and Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
ToplineElon Musk’s fortune increased nearly $165 billion Monday, reaching a record high $1.3 trillion after SpaceX surged 20% in its first full trading day after the company’s historic IPO.
The world’s richest person became the first trillionaire after SpaceX’s trading debut.
Getty Images
Key FactsShares of SpaceX surged more than 19.5% on Monday, closing at more than $192 and extending Friday’s opening rally of 19%, while Tesla shares also rose slightly (1.2%).
A further boost in SpaceX shares contributed to a $164.8 billion boost to Musk’s net worth, valued at a record $1.3 trillion, putting him roughly $1 trillion clear of Google cofounder Larry Page ($301.4 billion), who Forbes ranks as the world’s second-wealthiest person.
Musk owns 4.8 billion SpaceX shares and an additional 350 million stock options with an exercise price of $8.40 per share, bringing his stake to about 38%.
big number$85.7 billion. That’s how much SpaceX raised in its IPO, the company said Monday. That came after the brokers behind the offering purchased an additional 83.3 million shares to accommodate stronger investor demand following SpaceX's initial $75 billion raise. The initial public offering reportedly brought in more than $350 billion, including roughly $100 billion from retail traders and the remaining $250 billion from institutional investors.
key backgroundSpaceX’s trading debut last week swelled Musk’s stake in the company to about $821 billion, making him the world’s first trillionaire, with a net worth of $1.1 trillion. His fortune has soared ahead of the trillion-dollar milestone and is the latest of many over the last year, after Musk in October became the first person to be valued at $500 billion in October, then hit $600 billion in December and $700 billion just four days later.
further readingForbesSpaceX Says Historic IPO Raised More Than $85 BillionBy Ty Roush
ForbesSpaceX Opens At $150—Surging 20% After Largest IPO Ever (Live Updates)By Ty Roush
Marley Kayden discusses SpaceX (SPCX) rallying in its first full day of trading, with a record-setting IPO. Sam Vadas highlights continued pressure on homebuilder stocks as investors weigh affordability concerns and signs of slowing housing rates.
HomeMarketsU.S. & CanadaMarket ExtraMarket ExtraThe past couple of months have already seen an enormous amount of activity in the options spacePublished: June 15, 2026 at 6:24 p.m. ET
Options traders are bracing for what could be a very busy few days as a number of potentially market-moving developments are being crammed into a shortened four-day trading week.
Activity in the options market has been off the charts so far in 2026, with investors piling into bullish call options tied to hot semiconductor names and other high-flying stocks. This has helped push stocks higher, but it also leaves the market prone to sharp pullbacks, like what investors witnessed in the $1.8 trillion selloff on June 5, derivatives-market experts told MarketWatch.
VanEck Space Innovators UCITS ETF (VSPIF) is rated HOLD due to extraordinary recent gains and high concentration risk. VSPIF offers pure-play exposure to the commercial space economy, but currently lacks SpaceX, with potential inclusion not before September. The ETF's 253% one-year return is attributed to sector hype, not steady fundamentals, and future returns are expected to be more volatile and modest.
SpaceX (SPCX +19.79%), the aerospace and AI company founded by Elon Musk, went public at $135 per share on June 12. It opened at $150 and now trades at $180, giving it a market cap of $2.1 trillion and making it the world's sixth-most-valuable company.
But at that valuation, SpaceX trades at 113 times its 2025 revenue of $18.7 billion. It's also unprofitable, since the losses at its space division and newly integrated AI division (which includes xAI and X) are completely erasing Starlink's profits. Therefore, I wouldn't touch SpaceX's stock until the hype dies down and it cools to more reasonable valuations.
Image source: Getty Images.
Instead, I'd continue to accumulate rock-solid dividend stocks that will generate consistent income even if the next market crash wipes out high-flying stocks like SpaceX. These three stocks make the cut: Realty Income (O 0.99%), The Williams Companies (WMB 0.82%), and Philip Morris International (PM 1.35%).
Realty Income Realty Income, which owns more than 15,500 commercial properties, is one of the world's largest real estate investment trusts (REITs). It primarily leases its properties to recession-resistant businesses, such as convenience stores, drugstores, and discount retailers.
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It's maintained an occupancy rate above 96% since its IPO in 1994. As an REIT, it must distribute at least 90% of its taxable income to its investors as dividends, and it pays monthly dividends instead of quarterly ones. It's raised its payout 135 times since its public debut, and it currently pays a forward dividend yield of 5.2%.
Its adjusted funds from operations (AFFO) per share (which REITs use to gauge their profitability) rose by 2% in 2025. It expects that figure to grow abother 3%-4% to $4.41-$4.44 per share in 2026 to cover its forward dividend rate of $3.25 per share. Its stock trades at just 14 times that earnings estimate, making it a cheap dividend play in this frothy market.
The Williams Companies Williams is a midstream company that operates more than 33,000 miles of pipeline in the United States. Unlike other pipeline companies, which often transport a mix of natural gas, crude oil, and other resources, Williams primarily handles natural gas through its Transco pipeline that runs from Texas to the Eastern Seaboard.
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Williams handles roughly 30% of the country's natural gas production, putting it in a prime position to profit from the growth of the power-hungry AI, cloud, and data center markets. It's so building "behind the meter" (BTM) sites at data centers to provide hyperscalers with a stable flow of natural gas while bypassing traditional utilities. As a pipeline operator, it's well-insulated from volatile commodity prices because it merely collects "tolls" for using its infrastructure.
Analysts expect Williams' EPS to grow 13% to $2.38 this year, which will cover its forward dividend rate of $2.10 per share. That's a 2.9% yield, and it's raised its payout annually for 10 consecutive years. It also still looks like a bargain at 15 times this year's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Philip Morris International Philip Morris International, which was spun off from Altria (MO 1.82%) in 2008, is one of the world's largest tobacco companies. It generates nearly all of its revenue overseas, while Altria remains in the U.S. market. Both companies own Marlboro, the world's top cigarette brand.
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PMI, like Altria, is grappling with declining smoking rates. To offset that pressure, it consistently raises its cigarette prices and cuts costs. It's also expanding its portfolio of smoke-free products -- including its iQOS heated tobacco products, e-cigarettes, and its Zyn nicotine pouches -- to reduce its long-term dependence on cigarettes. In 2025, its sales of smoke-free products rose 14% organically and accounted for nearly 43% of its top line.
That's why it's still a reliable long-term investment. Analysts expect its adjusted EPS to grow 12% to $8.42 in 2026, comfortably covering its forward dividend rate of $5.88 per share. That equals a forward yield of 3.2%. It's raised its payout every year since its spin-off from Altria, and it still looks reasonably valued at 22 times forward earnings.
Elon Musk's space transportation, satellite internet, and artificial intelligence (AI) company, Space Exploration Technologies (SPCX +19.79%), went public last Friday. SpaceX, as it is better known, saw its stock soar 19% on the day, giving the company a $2.1 trillion market capitalization at the close of trading, making it the world's seventh-most-valuable public company.
The Center for Research in Security Prices (CRSP) maintains a series of indexes designed to track different areas of the stock market, which companies like Vanguard use as a foundation for their exchange-traded funds (ETFs). CRSP has a fast-track rule that allows it to add large companies to its indexes five trading days after their initial public offering (IPO), which means SpaceX could be in several different ETFs starting this Friday, June 19.
However, most of CRSP's indexes use a float-adjusted market cap methodology, which means they only consider the portion of a given company that actually trades publicly. Since SpaceX listed less than 5% of its shares, its float-adjusted market cap is only around $100 billion, so the company will have a relatively small representation in most CRSP indexes.
Nevertheless, here are two Vanguard ETFs that could own SpaceX before the end of this week.
Image source: Getty Images.
1. The Vanguard Total Stock Market ETF The Vanguard Total Stock Market ETF (VTI +1.68%) tracks the CRSP U.S. Total Market Index, which comprises all 3,498 companies listed on American exchanges. As a result, it's highly diversified with exposure to multitrillion-dollar giants and small-cap companies alike.
Below are the top five holdings in this Vanguard ETF, and their individual weightings.
Stock
Vanguard ETF Portfolio Weighting
1. Nvidia
6.63%
2. Alphabet
5.77%
3. Apple
5.74%
4. Microsoft
4.36%
5. Amazon
3.69%
Data source: Vanguard. Portfolio weightings are accurate as of April 30, 2026, and are subject to change.
Since SpaceX is a $2.1 trillion company, it would normally slot closely behind Amazon, which is worth around $2.6 trillion. But because of the float-adjusted market cap methodology I explained earlier, SpaceX is likely to have a weighting of just 0.12% (according to an estimate by Morningstar) when it enters the Vanguard Total Stock Market ETF.
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Therefore, SpaceX won't have much influence on this ETF's performance. That might be disappointing for investors who think the stock has significant upside, but history suggests that freshly listed stocks tend to experience elevated volatility, so maybe a small weighting isn't a bad thing.
As a result, this ETF might be a good option for investors seeking a bit of exposure to SpaceX while remaining highly diversified.
2. The Vanguard Growth ETF The Vanguard Growth ETF (VUG +2.66%) tracks the CRSP U.S. Large Cap Growth Index, which exclusively invests in the top 85% of growth stocks across the entire market. In other words, if we ranked all 3,498 stocks in the CRSP U.S. Total Market Index from largest to smallest, the Large Cap Growth Index would start at the top of the list and buy every growth stock until it captured 85% of its total value.
However, "growth" is the key word. This index disregards so-called value stocks, so you won't find companies like Coca-Cola or Johnson & Johnson here, because their fastest growing years are behind them. They focus on profitability and returning money to shareholders, and you can find such stocks in the CRSP U.S. Large Cap Value Index instead.
The Vanguard Growth ETF holds just 154 stocks. Its top five positions are almost exactly the same as the top five positions in the Vanguard Total Stock Market ETF, except with significantly higher weightings.
Stock
Vanguard ETF Portfolio Weighting
1. Nvidia
13.33%
2. Alphabet
11.60%
3. Apple
11.53%
4. Microsoft
8.76%
5. Broadcom
5.19%
Data source: Vanguard. Portfolio weightings are accurate as of April 30, 2026, and are subject to change.
The CRSP U.S. Large Cap Growth Index also uses a float-adjusted market cap methodology, so SpaceX is likely to have a small weighting of under 0.2% in the Vanguard Growth ETF when it's included on Friday.
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However, this Vanguard ETF might be suitable for investors who want to own SpaceX alongside other growth stocks. The fund has delivered a compound annual return of 18.3% over the last 10 years, which is well above the average annual return of 15.1% of the Vanguard Total Stock Market ETF over the same period. However, it can also experience more volatility during broader market corrections, which is something to keep in mind.
SpaceX (NASDAQ:SPCX) shares rose 17% to $187.70 on Monday, the first full day of trading following the company's record-breaking initial public offering on Friday, when the stock closed at $161.11, pushing its market capitalization above US$2.2 trillion and placing it among the six largest companies in the world.
The gain puts SpaceX (NASDAQ:SPCX) roughly US$400 billion shy of overtaking its nearest rival, which carries a market cap of nearly US$2.7 trillion.
The company also said Monday it has exercised the IPO's over-allotment option, allowing underwriters to sell an additional 83.3 million shares. The so-called greenshoe increases total proceeds to US$86.2 billion, or US$85.7 billion net of US$500 million in underwriting expenses listed in the prospectus.
Wedbush analyst Dan Ives said the debut represented a positive outcome for the broader technology sector, calling it a "Goldilocks" result after weeks of investor concern that the high-profile offering would drain capital from chip stocks and AI-related names.
"We view the IPO of SpaceX coming out of the gates on Friday as a 'Goldilocks outcome' for the tech sector as the reception of the pricing of SpaceX was solid and importantly the rest of the tech sector held up well," Ives said in a note to clients, adding that recent sell-offs in semiconductor stocks over the prior seven to ten days appeared partly linked to pre-IPO repositioning.
Ives said the strong debut is also a constructive signal for OpenAI and Anthropic, both of which he expects to pursue IPOs before the end of the year. He framed SpaceX going public as a watershed moment for the AI industry, arguing that as large private technology companies access public capital markets, investment into AI infrastructure will accelerate across energy, hardware, and software supply chains.
"The AI Revolution is still in the third inning and investors are still underestimating the scale and scope of this spending cycle," Ives said. He added that cloud growth for Microsoft Azure and Amazon Web Services remains underestimated by Wall Street, and that enterprise AI adoption is beginning to translate into concrete use-case deployments heading into the second half of 2026.
On the question of where value will concentrate as frontier AI models converge in quality, Ives argued the advantage shifts from the model layer toward data orchestration, identifying Palantir, Snowflake, Datadog, and Innodata as core beneficiaries.
Stephanie Aliaga, JPMorgan Asset Management global market strategist, says to expect SpaceX volatility in the next six months. She also says they are expective some big high-profile AI names, but the IPO markets are still going to be selective.
Peter Diamandis, founder of the XPRIZE Foundation, joins ‘Squawk on the Street' discuss SpaceX's public debut last week, the possibility of a SpaceX-Tesla merger, criticism of Elon Musk's trillionaire status, and more.
There's nothing quite like traders gobbling up $2 trillion of new equity to squash the fear out of the market.
Just 10 days ago, tech was nosediving, the stock market had its worst day since October 2025, and the Cboe Volatility Index was ramping up in a hurry — in part on investor concerns about how the market could digest the deluge in new SpaceX stock. Now, with the biggest initial public offering in history digested without a hiccup, investors are piling back into the very same stocks they previously sold, and Wall Street's so-called "fear gauge" is back below its long-term average.
The CBOE Volatility Index in the past month
The Nasdaq 100 jumped 3% Monday. The S&P 500 was last up about 1.7%, nearing the record reached earlier this month, as semiconductors surge to the front again, adding more than 4% to a new all-time high. Bears who argued that speculators were running out of appetite are now faced with a SpaceX market cap of almost $2.5 trillion that says otherwise. SpaceX shares were last up 13% on Monday.
"Although the SPX Index advanced by a modest 0.7% last week, the VIX Index declined far greater than expected due in large part to the unwind of protective next-12-months hedges and downside convexity positions," Ed Tom, senior director of derivatives market intelligence at Cboe, wrote in a note to clients Monday.
The VIX traded below 16 at its low Monday, a complete unwind of the pop in volatility that started June 5 when the VanEck Semiconductor ETF (SMH) fell more than 10% from its record. While options flows in the chip stocks still show significant hedging activity, trading around the VIX points to a more bullish outlook for stocks.
More puts traded than calls in VIX Monday, with almost as many calls sold as bought, according to data from ThinkOrSwim. Of the $93 million in options premium traded, more than $70 million was tied to puts, SpotGamma data show. The most popular contract by volume was the 16-strike put expiring Wednesday that traded 46,000 contracts.
In SMH, flows continued to lean bearish, as they have for weeks, despite semiconductors making an all-time high. With stock indexes now holding more semiconductors than ever, perhaps this month's whipsaw has investors paying up for hedges. While roughly 60% of premiums in SMH was in puts, there were notable put-spread sellers. This includes the biggest trader of the day, who collected $5 million selling two big put spreads expiring July 17, then spent $2.7 million getting long the 600/550 spread expiring the same day.
Options traders will have plenty to digest on Tuesday when SpaceX options list. Options in Tesla have long been a favorite among retail traders and are consistently among the most active single-stock derivatives.
HomeInvestingStocksMark HulbertMark HulbertThe biggest companies struggle to keep up with the stock market due to size alonePublished: June 15, 2026 at 4:15 p.m. ET
SpaceX founder and CEO Elon Musk appears via video before the launch of the company's initial public offering on June 12. Photo: Getty ImagesAs the stock market digests SpaceX’s mega-IPO, investors would do well to remember that bigger is not necessarily better.
This relationship between size and stock-market performance has been largely overlooked in debates about whether SpaceX’s stock is an attractive investment. But history teaches us that stocks at or near the top of the market-cap rankings face stiff headwinds due to their size alone.
Steve Westly, Managing Partner at The Westly Group and former Tesla board member, says investors should be cautious about investing in SpaceX, as investor exuberance is driving prices right now. He also warns that the firm faces steep competition with Google, OpenAI, and Anthropic in the AI space.
SpaceX shares jumped nearly 20% Monday in the Elon Musk-led rocket company’s first full day of trading following its record-shattering debut last week on the Nasdaq.
About 120 million shares had changed hands by 12 p.m. ET Monday, after trading volume on Friday broke past 500 million shares – nearing Facebook’s debut in 2012, when nearly 580 million shares were traded.
The historic debut on Friday opened at $150 a share, making it the largest-ever IPO and immediately shooting the company’s valuation above $2 trillion. It closed up 19.6% at $192.45.
SpaceX leaders and guests celebrate the firm’s IPO last Friday on the Nasdaq MarketSite. REUTERS In Sunday posts on X, his social-media platform, Musk claimed that SpaceX “might be able to reach” roughly $1 trillion revenue in 2030 – and “I would be surprised if revenue is not greater than $1T in 2031.”
That would be a huge growth trajectory, after SpaceX reported $18.7 billion in revenue last year.
SpaceX is perhaps best known for its reusable rockets and ambitions to colonize Mars.
But the company also owns Starlink, Musk’s satellite internet service provider, which has become a major government contractor over the past few years – and was the sole profitable division in 2025.
In February, Musk merged SpaceX with his artificial-intelligence startup, xAI.
The company’s massive spending on AI has weighed on its profits – and Musk has shown no signs of planning to slow down.
In 2025, SpaceX lost nearly $5 billion as its annual capital expenditures hit $20.7 billion.
SpaceX’s record-breaking IPO made Musk the world’s first trillionaire. via REUTERS In just the first quarter of 2026, SpaceX’s spending hit $10.1 billion – with AI accounting for $7.7 billion. That dwarfed its total spending in the same period last year of $4.1 billion.
Yet last week’s IPO easily smashed records, sparking a debate over whether the stock – and the broader AI, space and tech industries – are being overvalued.
CFRA on Friday gave SpaceX a “sell” rating with a 12-month price target of $115, which is nearly a 29% drop from Friday’s closing price. It attributed the less-than-enthusiastic outlook to “the company’s extremely ambitious growth strategy, elevated valuation expectations and significant capital intensity.”
“Investors aren’t buying today’s fundamentals – they’re buying Elon Musk, Starlink, AI, space infrastructure and the belief that SpaceX will dominate industries that don’t fully exist yet. That’s exciting, but it also means expectations are getting very high,” Scott Martin, partner at Kingsview Wealth Management, told The Post.
SpaceX’s Starship rocket lifts off during a test flight from Starbase, Texas, on May 22. AP Photo/Eric Gay “Can the stock continue to rise? Absolutely. But after a nearly 16% jump on top of a record IPO, investors should recognize that a lot of future expectations are already being priced in.”
In a note ahead of the IPO, Morningstar analyst Nicolas Owns said the firm values SpaceX at just $63 per share – calling the stock “overvalued.”
That reaction really makes a lot of sense. It's also, for active traders, a bit of a trap.
The launch story is the loudest signal in the room right now. But the things that will actually move SPCX over the next six months are quieter, slower, and almost invisible in mainstream coverage. Three of them deserve serious attention, and together they reframe SpaceX less as a stock to ride and more as a market-structure event to understand.
First, Figure Out What You Actually BoughtBefore anything else, retail traders need to answer a question most haven't asked yet: what kind of company is this, exactly?
The brand says "space." Rockets, Mars, reusability records, but that's the story being sold. And it's doing a lot of work hiding what's underneath.
That breakdown is a lot for valuation, and this is where Wall Street is genuinely fighting with itself. Goldman Sachs, the lead underwriter, projects the AI unit could grow revenue roughly 100 times by 2030. Morningstar puts the whole company's fair value near $780 billion. At $160-something a share, the market cap is sitting above $2 trillion. That's not a small disagreement. That's a $1.3 trillion gap depending on which analyst you believe.
A Buying Wave Is Coming – And It's Not From RetailHere's something the average QQQ holder almost certainly doesn't know yet.
In March 2026, Nasdaq rewrote its index methodology to create a "Fast Entry" pathway into the Nasdaq 100. Under the old rules, new listings had to wait several months before being added. Under the new rules, a company can enter in as few as 15 trading days, but as long as it ranks in the top 40 Nasdaq constituents by market cap. SpaceX easily qualifies at its current valuation. It's also the first company to ever use this pathway.
There's a knock-on effect too. To make room for SPCX, index funds will need to trim (sell) existing positions in other Nasdaq 100 names (probably Apple, Microsoft, Nvidia, and others). Passive investors holding those stocks through QQQ may see their allocations quietly shift without making a single decision. Their "diversified tech basket" is being restructured around them, by a rule change most of them have never heard of.
For active traders, this creates a potentially tradeable setup: a concentrated wave of forced buying in a tight window. The risk is clear too: once that wave is done, one of the structural props under the stock goes away. What happens when mandatory index demand dries up and SPCX has to hold its price on fundamentals alone is an open question worth thinking through now, not after.
There's a Volatility Calendar Hidden in the ProspectusMost retail buyers know IPOs come with lock-up periods. Very few know that SpaceX engineered something much more intricate than a standard six-month cliff, and something that's actually pretty useful for traders willing to do a bit of homework.
After that first earnings window, roughly 7% of insider shares releases at intervals around days 70, 90, 105, 120, and 135. A larger 28% unlock follows after Q3 earnings. A final batch releases around day 180. Musk and a small group of major backers have voluntarily extended their own restrictions to 366 days (this is framed publicly as a vote of confidence, but it also keeps long-term control tightly concentrated while the float expands in stages).
The point for traders is: this isn't one event to manage around. It's a calendar. Each tranche is a date when more shares could enter the market. If the stock is elevated into one of those windows, selling pressure could amplify fast. If it's been weak, the tranches may pass quietly. Either way, the schedule is readable right now, from the prospectus, before most people start looking at it.
Why Retail and the Market Are on Different ClocksOne thing that's a bit underappreciated in the SPCX conversation: the distance between how retail buyers are thinking about the stock and when the real catalysts actually land.
The first week has been driven by the launch story: the Starship V3 test flight in May, the IPO pop, the general excitement of a company going public after 24 years private. Those are vivid, real-time, emotionally charged events. They generate momentum buying with short time horizons. Totally understandable.
Three Things Nobody Is Quite Saying Out LoudA few shorter points worth flagging before you close the tab:
The $150 opening price has become a key technical level to watch. Several analysts have flagged it as critical (the point at which early aftermarket demand was established, and below which a retest of the $135 offer price starts to look plausible). Whether that framework holds or not, it gives traders a concrete near-term reference when the index wave completes and the stock has to find its own footing.
In SummarySpaceX is indeed a genuinely remarkable business. The dominant commercial launch operator on the planet. The only satellite broadband network with real global scale. An AI infrastructure play with ambitions the rest of the industry is only beginning to catch up to.
Traders who do well with SPCX over the next six months will probably be the ones who stop watching the rockets and start watching the calendar.
This article is for informational purposes only and does not constitute investment advice.
Image source: Google.
Editor’s Note: SPCX added $31.55 or nearly 20% in today’s session (June 15) to close at $192.50, pushing the market cap to $2.5 trillion.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Bloomberg's Bailey Lipschultz and David Bauer, head of equity capital markets Americas at JPMorgan, discuss SpaceX's success on the company's second day of trading after a record IPO Friday. Bauer said he sees a real 'investment thesis' driving SpaceX as the company contributes to reindustrializing America with 'new ecosystems' and the emergence of space as an industry.
Elon Musk’s SpaceX (NASDAQ:SPCX) on Friday pulled off the biggest IPO in history, pricing near $1.78 trillion, then jumping about 19% on debut to close above $2 trillion.
Weeks earlier, rival Blue Origin watched a rocket explode on the pad in a fireball compared to a nuclear blast.
The timing stung, because the Jeff Bezos-backed Blue Origin had been closing the gap between the two space companies.
A week before the blast, Bezos told CNBC the company was finally ready to take on outside investors, a sign it was gaining ground.
How An Explosion Moved The OddsOn May 28, a New Glenn rocket exploded on the pad during a ground test of its engines. The blast destroyed the rocket and badly damaged Blue Origin’s only launch site able to fly New Glenn, the vehicle meant to lift its Blue Moon lunar lander.
On Kalshi, the odds of Blue Origin reaching the moon before SpaceX fell to 45%, from above 69% before the explosion.
“We will fly again before the end of this year,” Blue Origin CEO Dave Limp said, but some employees told the Financial Times they doubt it.
Musk has shifted SpaceX’s focus to building a base on the moon rather than reaching Mars, its original goal.
The Capital Gap SpaceX has two cash engines Blue Origin lacks: Starlink’s billions in profit and its record IPO, which raised $75 billion. Bezos still funds his rocket company by selling Amazon stock.
Part of SpaceX’s lofty valuation comes from AI, not just rockets. The newly public company acquired xAI and plans to operate data centers in orbit.
SpaceX entered its second trading day Monday up roughly 6% above $170, already past two of three early analyst targets.
Image: Shutterstock
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On June 15, Direxion expanded its leveraged single-stock ETF lineup with the introduction of the Direxion Daily SpaceX Bull 2X ETF (LOFF). The fund has an expense ratio of 97 basis points. It aims to generate daily investment results double the performance of SpaceX (SPCX). LOFF debuted just one business day after the company’s IPO last Friday. It extends Direxion’s position as the largest single-stock ETF issuer in the U.S.
“Direxion has been managing leveraged ETFs and mutual funds for decades, and this wealth of experience and best-in-class risk management has allowed for our team to move as quickly as we have,” said Mo Sparks, Direxion’s Chief Product Officer. “Our goal is to provide traders the tactical tools they need, and as the SpaceX IPO has captured the market’s full attention, it is an important part of our offering to provide a leveraged solution as quickly as we felt reasonably possible.”
“As the global leader in single stock ETFs, we have portfolio managers who have navigated volatility throughout their careers. This, combined with our risk management processes, enables our team to launch into what likely will be a volatile market. Volatility comes with the territory at Direxion. It’s one of the leaders of the leveraged and inverse ETF market,” Sparks added.
The Business Behind the Bet SpaceX develops and launches advanced rockets and spacecraft. However, the company’s primary driver of revenue historically has come from its Starlink satellites. These satellites accounted for $11.4 billion of revenue in 2025. Despite the AI business recording a net loss prior to IPO, the company is expected to transform its xAI and its AI assistant, Grok, into a paramount $1.75 trillion driver of business. The company already exhibits opulent spending. Analysis from Neuberger expects its capital expenditures to reach $300 billion by 2030.
The fund caters to short-term investors with a high risk tolerance. Distinct from broadly diversified ETFs, LOFF tracks the price of a single stock rather than an index. This eliminates the diversification benefits seen in other products.
“Direxion is the largest leveraged single stock ETF issuer in the world and has been managing these strategies as long as they have been permitted in the US,” Sparks noted. “This scale and experience should give traders the comfort they need to feel confident that LOFF will provide the exposure they are looking to trade as soon as it comes to market.”
LOFF joins a rapidly expanding portfolio of single-stock leveraged ETFs, building on the firm’s momentum from Q1 2026 releases such as ADBU, PYPU, TXNU, and UNHU. Direxion continues to cement its role providing investment vehicles to traders seeking tactical, specialized exposure in an evolving market.
For more news, information, and analysis, visit VettaFi | ETF Trends.
As of midday, the S&P 500 (^GSPC +1.78%) rose 1.91% to 7,573.19, the Nasdaq Composite (^IXIC +2.99%) jumped 3.00% to 26,666.03, and the Dow Jones Industrial Average (^DJI +1.17%) gained 1.41% to 51,922.03 as tumbling oil and a U.S.–Iran peace framework fueled a broad risk‑on rally.
Market moversSpaceX extended its blockbuster IPO gains this morning. Semiconductor names, including Micron Technology and Western Digital, advanced on AI optimism and risk appetite. In contrast, Fox tumbled on Roku acquisition plans despite the strong tape.
What this means for investorsNews that the U.S. and Iran have agreed on a framework for peace lifted major U.S. indexes this morning. The deal, set to be signed on Friday, includes plans to reopen the Strait of Hormuz and allow oil tanker transit to resume. Oil fell to its lowest level in three months, with WTI crude oil trading around $80 per barrel at midday.
Energy stocks lagged while artificial intelligence (AI), semiconductor, and travel stocks gained, as investors shifted to growth stocks. The record-breaking SpaceX IPO reinforced bullish sentiment after the stock reached a valuation of over $2 trillion on its first day of trading.
After faltering last week, stocks seem to be rallying toward record highs once again. However, sky-high valuations and other warning signs mean some analysts remain cautious. For example, the tone of this week’s Federal Reserve meeting will be key after the 30-year Treasury yield hit a 19-year high last month. Rising bond yields have historically preceded interest rate increases and steep stock market losses.
Emma Newbery has positions in Roku. The Motley Fool has positions in and recommends Micron Technology, Roku, and Western Digital. The Motley Fool has a disclosure policy.
Across online investing forums, users complained of allocations as small as a single share of SpaceX despite requesting far larger amounts. Those who did receive stock are taking sharply different approaches, with some selling into the company's market debut while others are holding for the long haul.
Rocket Lab President and CEO Peter Beck says attention generated by the record SpaceX IPO “is a good thing for the whole space industry,” as he discusses the race to raise capital in the industry and the potential timeline for data centers in space. Beck speaks on “Bloomberg Surveillance.
Sandisk (SNDK +6.19%) stock surged 6.6% through 12:05 p.m. Monday -- and for a reason that may surprise you.
In a note out this morning, Canadian private equity shop Lynx Equity told investors that even though the SpaceX IPO is over, and even after the space company's shares are up 31%, there's still a way for investors to make money on the SpaceX IPO:
By buying Sandisk (SNDK +6.19%) stock.
Image source: Getty Images.
SpaceX is flush with cash now SpaceX made history last week, both scoring a gigantic valuation (currently $2.3 trillion -- quite a lot for a space stock with no profits) and raising $75 billion in cash.
Now SpaceX will have to figure out how to deploy all this cash to keep its growth rate going. And here's the thing: Lynx thinks SpaceX will spend quite a lot of this cash on semiconductors.
While still thought of by most investors as a space company, you see, the gigantic tech company that IPO'ed last week is really much more of an AI stock. Indeed, while the entire space launch market is currently valued at single-digit billions per year, at least some investors believe that SpaceX's AI business could eventually be worth $30 trillion annually.
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What this means for Sandisk For SpaceX to come anywhere near fulfilling this dream, however, it's going to need to build a huge AI business -- and spend heavily on AI chips and the memory chips that support AI inference work by those chips.
This means more money flowing to Nvidia (NVDA +3.44%), for example (which is in fact Lynx's favorite play on SpaceX), and also more money flowing to Sandisk (SNDK +6.19%) as well.
The best news of all? Even valued at 23x sales, Sandisk stock is still 5x cheaper than SpaceX!
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Space Exploration Technologies Corp. (NASDAQ: SPCX), popularly known as SpaceX, has held 18,710 Bitcoin (BTC) since its Initial Public Offering (IPO) on June 12, 2026.
After undertaking the largest IPO on Friday, with Bitcoin on its balance sheet as Finbold reported, SpaceX held the same amount of BTC as of press time. As such, the company, led by CEO and founder Elon Musk, has seen its BTC trove gain $55.2 million in unrealized profits, up from $1.15 billion on Friday to $1.21 billion on Jun 15.
SpaceX Bitcoin holdings. Source: Arkham Intelligence Notably, Bitcoin price has gained 5% over the past four days, rising from $63,521 on Friday to around $67,170 at the time of reporting. As a result, SpaceX remained the 8th-largest publicly traded company holding BTC as part of its strategic treasury reserve at the time of publication, as per updates from BitcoinTreasuries.
Bitcoin price rebounds after SpaceX IPO The SpaceX IPO debut may have influenced bullish sentiment in Bitcoin’s price. Over the past four days, BTC has rebounded by approximately 6.77%, rising from $62,910 on Friday to around $67,170 on Monday.
BTC price 7-day chart. Source: Finbold Bitcoin price faced significant selling pressure over the past few days, coinciding with the SpaceX IPO, as Finbold explained. Furthermore, the U.S. spot BTC exchange-traded funds (ETFs) recorded the highest monthly cash inflow on Friday.
If the momentum in capital rotation into Bitcoin continues over the coming days, further bullish sentiment could follow. The momentum in capital rotation toward BTC could be further strengthened if SpaceX increases its holdings, which could signal its long-term interest. Moreover, the company revealed in its May 20 S-1 filing with the United States Securities and Exchange Commission (SEC) that its BTC holdings had increased.
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SpaceX SPCX has recently had the most monumental initial public offering in Wall Street history, making a breathtaking debut on the Nasdaq exchange.
The aerospace and tech powerhouse raised a historic $75 billion – blowing past all prior financial records, instantly driving its market valuation past the $2.1 trillion mark.
However, beneath the euphoric ringing of the opening bell in New York and Texas, a big disconnect has emerged.
While public equity markets are treating Elon Musk’s firm as an unstoppable, multi-faceted giant, decentralized prediction platforms paint a remarkably skeptical picture regarding the firm’s ability to hit its most defining long-term operational objective.
The central pillar of SpaceX’s grand existential ethos – and a dominant theme throughout its SEC prospectus—is the colonization of Mars.
Yet, according to data from the prediction market platform Kalshi, crowdsourced intelligence bets heavily against near-term success.
Traders on the platform are pricing in a meager 18% probability that SPCX will successfully launch a crewed mission to the Red Planet by December 31, 2029.
Despite continuous public relations momentum and routine Starship test flights, this collective skepticism is deeply entrenched; odds have failed to cross a one-in-four threshold since the event contract debuted.
This collective doubt aligns seamlessly with SpaceX’s own regulatory disclosures, which candidly admit that building a Martian colony relies heavily on unproven or currently “non-existent” tech, rendering concrete timelines virtually impossible to guarantee.
For standard corporations, missing a core strategic goal would trigger a massive sell-off, but for SPCX shares, the short-term fallout of missing the 2030 Mars milestone is surprisingly negligible.
Institutional investors are not valuing the giant as an “immediate” interplanetary transport system.
Instead, Wall Street is infatuated with its highly lucrative, Earth-bound monopolies.
The company's financial engine is driven by its Starlink satellite broadband division, which brought in a towering $11.4 billion in revenue, commanding over 60% of total corporate inflows.
When combined with its undisputed 84% stranglehold on the global orbital launch market and its newly integrated Colossus AI data center division, SpaceX possesses robust infrastructure plans that somewhat insulate the stock from deep-space delays.
Ultimately, SpaceX stock occupies a unique duality on Wall Street, operating simultaneously as a highly profitable commercial monopoly (Starlink) and a speculative astrofuturistic bet.
Musk’s personal financial incentives are structurally tied to the extreme macro-vision—requiring a functioning colony of one million inhabitants on Mars before his restricted stock bonuses unlock—but retail and institutional traders are focused on more immediate financial metrics.
With an impending fast-track inclusion into the Nasdaq-100 index set to trigger tens of billions in passive institutional buying, the immediate trajectory for SPCX stock remains “decoupled” from deep-space timelines.
While prediction markets are likely correct that footprints won’t be left on Martian soil this decade, SpaceX’s earthly financial empire may prove sufficient to keep its stock soaring.
ToplineElon Musk’s fortune increased by more than $110 billion Monday, reaching a record high $1.2 trillion and extending his lead as the world’s richest person, as shares of SpaceX surged more than 14% on the first full trading day after the company’s historic IPO.
The world’s richest person became the first trillionaire after SpaceX’s trading debut.
Getty Images
Key FactsShares of SpaceX surged 14% as of Monday afternoon to just over $183, extending Friday’s opening rally of 19%, as Tesla shares also rose slightly (0.9%).
A further boost in SpaceX shares added $112.6 billion to Musk’s net worth, valued at a record $1.2 trillion, as he ranks the world’s richest by around four times the net worth of any other person, well ahead of Google cofounders Larry Page ($302.9 billion) and Sergey Brin ($279.5 billion) and Amazon’s Jeff Bezos ($255.5 billion), according to Forbes’ Real-Time Billionaires list.
Musk owns 4.8 billion SpaceX shares and an additional 350 million stock options with an exercise price of $8.40 per share, bringing his stake to about 38%.
big number$85.7 billion. That’s how much SpaceX raised in its IPO, the company said Monday. That came after the brokers behind the offering purchased an additional 83.3 million shares to accommodate stronger investor demand following SpaceX's initial $75 billion raise. The initial public offering reportedly brought in more than $350 billion, including roughly $100 billion from retail traders and the remaining $250 billion from institutional investors.
key backgroundSpaceX’s trading debut last week swelled Musk’s stake in the company to about $821 billion, making him the world’s first trillionaire, with a net worth of $1.1 trillion. His fortune has soared ahead of the trillion-dollar milestone and is the latest of many over the last year, after Musk in October became the first person to be valued at $500 billion in October, then hit $600 billion in December and $700 billion just four days later.
further readingForbesSpaceX Says Historic IPO Raised More Than $85 BillionBy Ty Roush
ForbesSpaceX Opens At $150—Surging 20% After Largest IPO Ever (Live Updates)By Ty Roush
ToplineElon Musk’s fortune increased by more than $110 billion Monday, reaching a record high $1.2 trillion and extending his lead as the world’s richest person, as shares of SpaceX surged more than 14% on the first full trading day after the company’s historic IPO.
The world’s richest person became the first trillionaire after SpaceX’s trading debut.
Getty Images
Key FactsShares of SpaceX surged 14% as of Monday afternoon to just over $183, extending Friday’s opening rally of 19%, as Tesla shares also rose slightly (0.9%).
A further boost in SpaceX shares added $112.6 billion to Musk’s net worth, valued at a record $1.2 trillion, as he ranks the world’s richest by around four times the net worth of any other person, well ahead of Google cofounders Larry Page ($302.9 billion) and Sergey Brin ($279.5 billion) and Amazon’s Jeff Bezos ($255.5 billion), according to Forbes’ Real-Time Billionaires list.
Musk owns 4.8 billion SpaceX shares and an additional 350 million stock options with an exercise price of $8.40 per share, bringing his stake to about 38%.
big number$85.7 billion. That’s how much SpaceX raised in its IPO, the company said Monday. That came after the brokers behind the offering purchased an additional 83.3 million shares to accommodate stronger investor demand following SpaceX's initial $75 billion raise. The initial public offering reportedly brought in more than $350 billion, including roughly $100 billion from retail traders and the remaining $250 billion from institutional investors.
key backgroundSpaceX’s trading debut last week swelled Musk’s stake in the company to about $821 billion, making him the world’s first trillionaire, with a net worth of $1.1 trillion. His fortune has soared ahead of the trillion-dollar milestone and is the latest of many over the last year, after Musk in October became the first person to be valued at $500 billion in October, then hit $600 billion in December and $700 billion just four days later.
further readingForbesSpaceX Says Historic IPO Raised More Than $85 BillionBy Ty Roush
ForbesSpaceX Opens At $150—Surging 20% After Largest IPO Ever (Live Updates)By Ty Roush
Seema Shah discusses key movers for investors to watch in Elon Musk's many business arms, including his newest publicly traded company: SpaceX (SPCX). She breaks down how Starlink factors into SpaceX's profits and where Grok stands among AI apps.
MIAMI, June 15, 2026 (GLOBE NEWSWIRE) -- Defiance ETFs today announced the launch of the Defiance Daily Target 2X Short SpaceX ETF (SPCQ), expanding its lineup of single-stock leveraged ETFs designed for active traders seeking amplified exposure to innovative growth companies. SPCQ is designed for traders seeking magnified, short-term inverse exposure to Space Exploration Technologies Corporation (“SpaceX”) (NASDAQ: SPCX), a leading aerospace and satellite communications company that recently completed its initial public offering and is focused on reusable launch systems, commercial space transportation, and global broadband connectivity through its Starlink network.
By seeking to deliver -200% of the daily percentage change in the share price of SpaceX, the Fund allows investors to express tactical bearish views on the company within the accessibility and transparency of an exchange-traded fund.
Investment Objective
The Fund seeks daily inverse investment results, before fees and expenses, of -2 times (-200%) the daily percentage change in the share price of Space Exploration Technologies Corporation (NASDAQ: SPCX). The Fund does not seek to achieve its stated investment objective for a period other than a single trading day.
Underlying Company: Space Exploration Technologies Corporation (“SpaceX”)
Space Exploration Technologies Corporation is a company listed on the Nasdaq Stock Market under the ticker SPCX, which recently completed its initial public offering, and that designs, manufactures, and launches advanced rockets and spacecraft. Founded in 2002 by Elon Musk, SpaceX develops and operates launch vehicles for commercial, government, and defense customers, and provides satellite-based broadband services through its Starlink network. The company is a leading participant in the commercial space industry, contributing to the expansion of global satellite communications and orbital launch capabilities.
An investment in the ETF is not a direct investment in SpaceX.
The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged inverse (-2X) investment results, understand the risks associated with the use of leverage, and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues daily leveraged investment objectives, which means it is riskier than alternatives that do not use leverage. The Fund magnifies the inverse performance of the Underlying Security and is designed strictly for short-term use. For periods longer than a single day, the Fund's performance will be the result of compounded daily returns, which is very likely to differ from -200% of the return of SpaceX over the same period. It is possible investors could lose their entire principal within a single trading day.
Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. Please read the prospectus and/or summary prospectus carefully before investing. Hard copies can be requested by calling 833.333.9383.
Investing involves risk. Principal loss is possible. As an ETF, the Fund may trade at a premium or discount to NAV. Shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. A portfolio concentrated in a single issuer or sector may be subject to a higher degree of risk. There is no guarantee the Fund’s strategy will be properly implemented, and an investor may lose some or all of its investment.
SPCX Price Appreciation Risk. As part of the Fund’s inverse investment strategy, the Fund enters into swap agreements and options contracts based on the share price of Space Exploration Technologies Corporation (NASDAQ: SPCX) (the “Underlying Security”). This strategy subjects the Fund to certain of the same risks as if it shorted shares of the Underlying Security, even though it does not. By virtue of the Fund’s indirect -2X exposure to changes in the share price of the Underlying Security, the Fund is subject to the risk that the Underlying Security’s share price increases. If the share price of the Underlying Security increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks:
Indirect Investment in SpaceX Risk. SpaceX is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates, and is not involved with this offering in any way. SpaceX has no obligation to consider the Fund or its shareholders in taking any corporate actions that might affect the value of Fund shares. Investors in the Fund will not have voting rights or other ownership privileges associated with holding shares of SpaceX.
SpaceX Performance Risk. SpaceX may fail to meet publicly announced expectations about its business, launch operations, satellite deployments, or commercial growth initiatives, which could cause the value of the Underlying Security to decline. SpaceX operates in a highly capital-intensive and technologically complex industry where launch failures, manufacturing defects, delays in deployment schedules, or operational disruptions could materially affect its business and financial condition.
Commercial Space Industry Risks. Companies engaged in the commercial space industry operate in an environment characterized by rapid innovation, high development costs, evolving regulatory oversight, and uncertain demand. The success of these businesses depends on their ability to maintain technological competitiveness, execute reliable launches, and secure ongoing funding and customer demand. Increased competition, regulatory changes, launch failures, or reductions in government spending could adversely affect SpaceX and the Fund’s performance.
Satellite Communications Industry Risks. Companies involved in satellite communications and broadband services face significant operational, technological, and competitive risks. These businesses require substantial investment in satellite constellations, infrastructure, and network operations, and depend on continued regulatory approval for spectrum access and orbital positioning. Competition from terrestrial broadband providers and other satellite operators may limit growth opportunities and negatively impact the Underlying Security.
Elon Musk Influence Risk. The value of SpaceX may be significantly impacted by the actions, decisions, and public statements of Elon Musk. Public perception regarding Mr. Musk, his leadership, or involvement in other ventures may materially affect investor sentiment and the performance of the Underlying Security.
Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment that diversifies risk or tracks the market generally. The Fund’s value may fluctuate more sharply in response to events affecting SpaceX than funds that invest in a broader range of issuers.
Recent IPO and Derivatives Capacity Constraints Risk. The Fund’s ability to achieve its daily leveraged investment objective depends, in part, on the availability of swaps, options, and other financial instruments that provide exposure to the Underlying Security. For a recently public company, these instruments may be limited, illiquid, costly, or unavailable, particularly shortly after an IPO or during periods of significant volatility or market demand.
Compounding and Market Volatility Risk. The Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is likely to differ from 200% of the Underlying Security’s performance. During periods of higher volatility, compounding effects may cause the Fund to lose value even if the Underlying Security’s share price increases over the longer term.
Daily Correlation/Tracking Risk. There is no guarantee that the Fund will achieve a high degree of leveraged correlation to the Underlying Security. Market disruptions, volatility, or limitations in the availability of derivatives may cause the Fund’s performance to deviate from its daily leveraged investment objective.
Leverage Risk. The Fund will seek 2X long exposure through financial instruments, which exposes the Fund to the risk that losses may be magnified. Leverage increases the Fund’s volatility, and a relatively small movement in the Underlying Security’s share price may result in significant losses for the Fund.
Counterparty Risk. The Fund is subject to counterparty risk due to its use of derivatives. If a counterparty fails to meet its contractual obligations, the Fund may experience delays or losses, which could negatively affect its performance.
Derivatives Risk. The Fund’s investments in derivatives may pose risks greater than those associated with directly investing in securities. These risks include increased volatility, imperfect correlation with the Underlying Security, liquidity constraints, valuation challenges, and the potential for losses exceeding the amount initially invested.
Rebalancing Risk. If the Fund is unable to rebalance its portfolio correctly or in a timely manner, its exposure may not be consistent with its investment objective. This may increase the Fund’s risk exposure and cause its performance to diverge from its intended daily leveraged results.
Non-Diversification Risk. Because the Fund is non-diversified, it may invest a greater percentage of its assets in a single issuer. As a result, the Fund may be more sensitive to adverse events affecting SpaceX than a diversified fund.
Swap Agreements. The use of swap transactions is a highly specialized activity, which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions.
Fixed Income Securities Risk. When the Fund invests in fixed income securities, the value of your investment in the Fund will fluctuate with changes in interest rates.
High Portfolio Turnover Risk. Daily rebalancing is expected to result in high portfolio turnover. High portfolio turnover may increase transaction costs, which could reduce the Fund’s returns and potentially result in higher taxable distributions for shareholders.
Liquidity Risk. Some securities or financial instruments held by the Fund may be difficult to sell, particularly during periods of market stress or volatility. Reduced liquidity may make it difficult for the Fund to adjust its exposure or meet its investment objective.
New Fund Risk. The Fund is a recently organized management investment company with a limited operating history. As a result, there is limited performance history upon which investors can evaluate the Fund.
Distributed by Foreside Fund Services, LLC.
A photo accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/ab71dab4-a168-4a8c-98b0-f191b922e095
Defiance Launches SPCQ: Daily 2X Short ETF for SpaceX Defiance ETFs today announced the launch of the Defiance Daily Target 2X Short SpaceX ETF (SPCQ), ex...
Several ETFs have added exposure to Space Exploration Technologies (SPCX) after the aerospace giant completed the largest initial public offering in market history. Trading on the Nasdaq, SpaceX surged 19% from its initial $135 offering price to close at $160.95 per share, notching a historic $2.1 trillion valuation. Actively managed ETF vehicles were able to use their operational flexibility to add positions in SpaceX at its debut.
Key Takeaways Active managers bypassed traditional index-inclusion lag times by executing secondary market purchases of SpaceX on its first day of public trading. Five distinct ETFs — BLOK, DYNF, RONB, MFSG, and FFLG — swiftly established stakes in the newly public aerospace giant. While many ETFs are just now gaining exposure to the company, Baron’s RONB has uniquely held private equity exposure to SpaceX since 2017. ETF Exposure to SpaceX Active ETFs bypassed traditional index-rebalancing waiting periods to secure immediate allocations in SpaceX during its first day of public trading. According to Bloomberg data, a diverse cohort of active funds — including BLOK, DYNF, RONB, MFSG, and FFLG — have already established positions in the company. While this has been a highly anticipated IPO, it’s important to note that asset managers like Baron have maintained institutional private equity exposure to SpaceX in its ETF since 2017.
Passive index strategies face structural lag times before integrating new listings into baseline benchmarks — ranging from days to months — but active managers moved aggressively on Friday. While active ETFs could bypass the standard rules-based waiting periods that govern broad index additions, it introduces questions regarding premium execution and initial valuation risk.
Thematic and Factor ETFs Add Positions in the Aerospace Giant The buying spree spanned multiple investment mandates, reflecting the market’s multi-faceted valuation of SpaceX. The Amplify Blockchain Technology ETF (BLOK), which provides exposure to the future of blockchain and crypto investing, established an allocation. Concurrently, quantitative and factor-driven models responded to the volume; the iShares U.S. Equity Factor Rotation Active ETF (DYNF) and the Baron First Principles ETF (RONB) added positions to SpaceX.
Core Growth ETFs Add Exposure to SpaceX Core growth vehicles also built allocations during the historic volume surge. The MFS Active Growth ETF (MFSG) and the Fidelity Fundamental Large Cap Growth ETF (FFLG) each added positions on day one.
For more news, information, and analysis visit the Thematic Investing Content Hub.
VettaFi LLC (“VettaFi”) is the index provider for BLOK, for which it receives an index licensing fee. However, BLOK is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of BLOK.
