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Space Stocks Are Crashing Before The SpaceX IPO — Don’t Miss This

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Space Stocks Are Crashing Before The SpaceX IPO — Don’t Miss This

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569 segments

0:00

So, space stocks remain one of the most

0:02

exciting sectors in the market heading

0:04

into week two of June. And if you're

0:06

investing in the space stocks right now,

0:08

whether it's defense companies,

0:09

satellite communications, launch

0:11

providers, golden dome, AI

0:14

infrastructure, any of the AI data

0:16

center companies, this is for you. This

0:18

is a growth cycle that might not be

0:20

done. I know we see some pullbacks into

0:22

Friday. The data in the Fed looks okay.

0:26

The job reports look good, but then

0:28

Broadcom came out with some earnings

0:30

that did not look so good. And not that

0:31

the earnings were bad, but the

0:32

projections for the revenue were not

0:34

that great. So, building some momentum,

0:36

looking at the catalysts ahead of the

0:38

SpaceX IPO, and where the names are that

0:41

we'd really want to have our attention

0:43

on right now is important. That's

0:45

exactly why I built Prophecy as well. If

0:47

you'd like to stay up to date with the

0:48

best AI companies, data center, space

0:51

tech companies, this is the exact app

0:54

I've been using to gain over 100% on

0:56

over 10 plus positions here in the last

0:59

two quarters. And you can find it in the

1:01

third link in the description below. If

1:04

you'd like my help building a system in

1:06

your portfolio to work with me directly,

1:08

and you'd like access to Prophecy AI and

1:10

our research tools, then you can find it

1:12

in the first link in the description

1:14

below. So, let's jump into the top

1:17

companies we're watching in the space

1:19

tech IPO. You got this big surge on SPY.

1:23

You have that potential for the

1:24

correction and not the super hyper

1:26

bullish move in SPY. And you have the

1:30

Broadcom uh earnings that came out with

1:32

lower revenue guidance last week that

1:34

really kind of put the not nail in the

1:36

coffin, but twisted the knife a little

1:38

bit in the in the dagger that was also

1:41

dropped in relation to the huge Blue

1:44

Origin explosion. Also, ever since that

1:48

explosion, we've seen some sell-offs in

1:50

the space tech market. Rocket Lab is

1:52

down from $151 a share down to this

1:55

level at around 106, 105. And this is

1:59

actually what we were anticipating into

2:02

our last Space Tech video when we went

2:04

over top space stocks last week is that

2:07

we could see that momentary pullback.

2:09

And one thing to note, it's not that

2:11

we're seeing a guaranteed continuation

2:14

into the SpaceX IPO here, but it is

2:17

something to consider that a lot of

2:19

times, especially with companies like

2:20

Rocket Lab that we've been covering

2:22

since $3 a share and I've been investing

2:25

in it since that time as I have friends

2:27

that work there.

2:29

I've been heavily involved in

2:31

a lot of space conferences to be able to

2:33

get information on this company and

2:34

other companies like Redwire and LUNR

2:37

and Planet Labs for a few years now. We

2:40

started the channel here about a year

2:42

and a half ago and it's been a crazy

2:44

year and a half. We've grown over 35,000

2:46

subscribers. Thanks for subscribing. My

2:48

wife and I are expecting a little one

2:50

here and we just got a ultrasound today.

2:52

It was super fun. You know, time's

2:54

passing and the cool part is is that all

2:56

the companies we've been covering over

2:58

the last few years, for the most part,

3:00

have more than 100%

3:03

gained up in the last 12 months, which

3:06

is great. But every time that Rocket Lab

3:08

has continued up, they kind of broke out

3:11

and then that previous resistance, the

3:13

rising resistance level, starts to act

3:15

as a support in bullish situations. So

3:18

right now that rising resistance level

3:21

on Rocket Lab, which is kind of the

3:23

closest asset to SpaceX that we can

3:26

currently track that's a publicly traded

3:29

company that almost always tracks 1/10

3:33

of that of the market cap of

3:35

SpaceX. So with their recent pullback

3:38

from $151

3:40

to now selling down all the way here to

3:43

107 bucks a share, they're now

3:46

approaching that previous rising

3:48

resistance level that's going to be here

3:50

at $100. So there is that possibility we

3:53

get that strong kind of bottom, which we

3:56

actually did see a little bit of a

3:58

bottom. You could see it sloped down

4:00

further towards end of Friday, but we

4:02

were starting to to maybe see a little

4:04

bit of a slow down from that sell off,

4:07

but nope, it's still kind of selling

4:08

down. But, you got that previous

4:09

resistance potentially acting as a

4:11

support. And the Space Tech or SpaceX

4:15

IPO, you know, if things go well,

4:18

there's a couple things to consider. The

4:19

biggest bear case that we don't see with

4:22

the SpaceX IPO is that these companies

4:25

are tracking SpaceX, SpaceX IPOs sells

4:29

off big, and some of these companies

4:31

that are trading even at premiums like

4:34

ASTS,

4:35

well, now it's back down from 133 down

4:38

to 92. And like Planet Labs, that was

4:41

just up there around $55 a share, that's

4:43

now sold back down to the support level

4:46

at 31. Big sell off after making that

4:49

move up to 54. Continue to sell down and

4:51

that they don't recover until after

4:53

SpaceX recovers from whatever dip

4:56

happens at IPO. Now, that's what a lot

4:58

of people kind of expect is that we're

5:00

going to see this kind of hype here, and

5:02

then IPO happens, and then the whole

5:05

Space Tech market kind of dips like most

5:07

IPOs, and then some of these companies

5:09

take years to recover. Now, that's one

5:12

way to look at it. There is this other

5:15

way to look at it. And this is something

5:17

that I think a lot of people miss. The

5:18

red is actually good. You're meant to

5:20

see fear, and red is obviously meant to,

5:23

you know, instill some panic. But, every

5:26

time that the market's pulled back,

5:27

let's say 20%, it's always been followed

5:30

by a 40% rally. There has never been a

5:34

time

5:35

where the Space Tech market has pulled

5:37

back, you know, 20% and hasn't recovered

5:39

40%. It It's happened every single time.

5:43

So, with this big pullback that we see,

5:45

we get these sell downs. again, $54

5:48

range back down to 28. That's a 40%

5:51

sell-down, again.

5:52

Never have we not seen the recoveries

5:54

kick in. Now, the timing is kind of

5:56

interesting. It's almost like

5:58

stagflation when you have, you know, you

6:00

know, oil interest rates, and then you

6:01

have inflation in the United States, and

6:03

then you have cost of goods and job

6:05

reports, all kind of conflicting. It's

6:07

kind of hard to read, you know, what's

6:09

happening in the economy. That That was

6:10

something we saw between 2022 2024. That

6:13

was a That was a bear case, right? Right

6:16

now, we kind of have this um It's kind

6:19

of like that, but there's some bulls.

6:21

There's more bull catalysts than I would

6:23

say bear catalysts. One of the recent

6:25

ones that's going to tie into the SpaceX

6:27

market. And I I I want you guys to

6:29

realize this.

6:31

The top space stock companies we're

6:32

watching for this week into week two,

6:35

they're the same. They include Rocket

6:37

Lab and Blacksky and LUNR and ASTS and

6:41

RD W Redwire and Planet Labs. Because

6:45

these companies are going to be building

6:46

infrastructure. They're already seeing

6:48

revenues. They're very solid. But one of

6:50

the top space companies, if you go back

6:53

two years on a or a year and a half,

6:55

we've had this channel for a year and a

6:56

half, when we first started covering

6:58

space stocks, AMD almost always made its

7:02

way into the top five space stocks. Do

7:04

you guys know why? It was because AMD

7:07

provides the microchips

7:09

for Starlink to function, SpaceX's

7:13

company. And we talked about this a

7:14

while. If you look at some of the the

7:16

articles, you could see even our videos.

7:18

Look at that, over a year ago, when we

7:20

were covering this. Even back in 2024.

7:23

You see that? That was one of our first

7:24

videos there. AMD powering Starlink, and

7:27

how we were so bullish on not just the

7:29

data center market, but that they were

7:31

going to grow there. Now, you might say,

7:32

"Will, okay, okay, okay. I don't know

7:33

what this has to do with the space tech

7:36

market. We're talking about the SpaceX

7:38

IPO. All right, they're powering

7:39

Starlink, but what does AMD have to do

7:42

with any of this? And again, thank you

7:44

guys. I love when like we see our

7:46

recommendations in the Google. I

7:48

appreciate you all. Just means we're

7:50

covering stocks of integrity and and we

7:52

appreciate it.

7:53

Again, the reason why it's important is

7:56

because when you're looking at the moves

7:59

that are playing out ahead of the SpaceX

8:01

IPO, there's some data that you should

8:03

probably know. For example, SpaceX has

8:07

recently merged with a large portion of

8:11

xAI, which means the largest

8:13

supercomputer in the world, x Colossus,

8:16

xAI Colossus, which is also powered by

8:19

Supermicro Computer, which they may have

8:21

sold off recently. We want to watch

8:23

them.

8:24

Is partnered now, you got to check this

8:26

out. Google just took out a huge loan.

8:29

Google took out a loan in the last week.

8:31

So, let's also, before we get there, I

8:33

just want to also, let's just search

8:35

this up real quick.

8:37

Google is doubling down.

8:40

In recent news, if you look at Google

8:42

here,

8:43

they've been taking out loans and into

8:46

the last few weeks. I don't know where

8:48

it is exactly.

8:50

Um let's see. Google

8:53

takes out a loan here. Let's see if we

8:55

can find some recent information on

8:58

this. You got February, you got some

9:00

other ones. I think it was a $60 billion

9:02

loan. I got to find where it was

9:03

exactly.

9:05

Um

9:06

but here's what I'm saying is that

9:08

SpaceX just signed a deal with Google in

9:11

the last day. And this is, if you look

9:13

at the headlines, just $920 million

9:17

per month, so nearly a billion dollars,

9:20

starting in October 2026,

9:23

where SpaceX is giving, you know,

9:26

they're now partnered with xAI, they're

9:29

providing Nvidia GPU and CPU access to

9:34

over 110,000

9:36

units for Google to be able to run their

9:40

business and scale up. So, when you look

9:43

at SpaceX, and this is what we're

9:44

talking about why AMD was one of the top

9:46

space companies. Why Why you look at the

9:49

space companies and you say,

9:51

"Okay,

9:52

why would Google do this?" Well,

9:55

XAI is or SpaceX is not just

9:58

SpaceX.

10:00

SpaceX is an AI company as well. And

10:03

they've already signed a billion-dollar

10:05

deal here with Google. Now, you might

10:08

say, "Well, that's cool, but what about

10:09

7.7 or 1.7 trillion-dollar IPO or what

10:14

have you?" That's That's a factor, but

10:16

if you look at the IPO filing they

10:19

recently amended, they've changed some

10:21

things in how many people are able to

10:23

sell, 5% of people are able to sell

10:25

right away.

10:27

The reason that I bring this up isn't

10:29

because it means everything's bullish,

10:32

but it does mean that when you're

10:34

looking at the SpaceX IPO, you have

10:36

things like the Google contract here for

10:39

billion dollars a month essentially, 12

10:42

billion dollars a year,

10:44

that are going to be going in um

10:46

just with Google alone. And then you

10:49

have the uh So, that might actually

10:51

propel them. That That brings in a whole

10:53

'nother market of people watching AI

10:55

infrastructure. What is the fastest

10:57

growing market over the last year? It's

10:59

AI infrastructure. AI data centers. The

11:02

AI data center investors and

11:04

semiconductor investors are now going to

11:06

be looking They're They're basically um

11:09

not going to be blind to the fact that

11:12

SpaceX is in that market as well. So,

11:15

when we look at companies like, you

11:17

know, Rocket Lab or you're looking at

11:19

Redwire, which is a top company in the

11:21

defense market, and they are doing

11:24

NASA's Artemis 2, and you look at, you

11:28

know, LUNR where they're doing the

11:30

connections between the different uh

11:33

uh space infrastructure, kind of like

11:35

almost taxiing

11:37

and and connecting the different

11:40

infrastructure that's up in space. Or

11:42

you look at BlackSky with their, you

11:44

know, AI analysis of down on Earth,

11:48

where they're starting to

11:50

deploy these extremely high-resolution

11:52

satellites, and they're doing that as

11:54

well through Rocket Lab. So, Rocket Lab

11:56

is getting up there doing dozens of

11:59

launches almost every quarter it seems

12:01

they're they're having dozens of

12:03

launches. You can look at their

12:05

recent missions as recently as May 22nd.

12:09

So, in this last month, they're

12:10

launching Electron. You can see some of

12:12

their recent launches there. They're

12:14

end-to-end is that with this big growth,

12:18

it's actually um

12:21

interesting that people are looking at

12:23

just the space tech. The space tech is

12:25

big, but the financials and where

12:27

they're at for a lot of these companies,

12:29

they're still super solid. You've got a

12:32

billion dollars in equity for assets on

12:35

Redwire with income growing up to

12:38

revenues surging. Revenues are growing

12:40

massively. Their market cap still just

12:43

1.75 billion.

12:45

If you look at Rocket Lab, you know,

12:46

they're normally tracking about 1/10 the

12:49

size of SpaceX. That's changed a little

12:51

bit because I remember a year and a half

12:54

ago, Rock or SpaceX was at $250 billion

12:58

in valuation. So, just in the last year

13:01

and a half, they've gone from 250

13:03

billion to 1.7 billion or trillion. How

13:06

did they do that? How did they, you

13:07

know, 5x, 6x, 7x actually from where

13:10

they were? Well, they merged a lot of

13:12

their business and now they have XAI as

13:15

a

13:16

big piece of their IPO. So, this isn't

13:18

just the space tech market. So, just

13:21

something to consider, you know, if

13:22

we're seeing massive pullbacks, for

13:24

example, in

13:26

data center markets, and you get some

13:28

data center companies like I

13:30

our top companies we cover like I ran in

13:33

MBIS and Keel where you see APLD pulling

13:37

back from all-time highs at $50 down to

13:39

38 and you see even Super Micro again

13:43

they're actually providing the

13:44

infrastructure for

13:46

they're one of the top ones we've been

13:47

covering for a bit they've made some

13:49

good recoveries but they haven't even

13:50

made their run back to previous highs at

13:52

$120 a share. But the my point is is

13:55

that the green is actually would be a

13:57

little scary right now. It's great that

13:59

we see some red in the markets. Most

14:01

people panic and sell but my point is as

14:04

well while it's been extremely volatile

14:07

in these markets and you see companies

14:10

you know up and down by 15 20% per day

14:13

in their swings that every time we've

14:17

seen these big pullbacks if we do get

14:18

them we've always seen the recoveries.

14:21

And so if there was a time when there

14:23

was going to be an IPO that wouldn't

14:25

just sell off and you you you got to be

14:27

prepared for that. You got to have

14:29

differentiation between you know an

14:31

actual trade and what you're willing to

14:33

do versus your forever stocks you're

14:35

going to hold and hold grow to hundreds

14:38

of thousands or millions of dollars and

14:39

then you know take loans against them

14:41

because you're never going to sell those

14:42

stocks like that type of investments is

14:45

how I approach a lot of these space

14:46

companies a lot of these data center

14:47

companies I just continue to hold. And

14:50

then we trade them. So we also trade

14:52

them in the short term if we want to

14:54

capitalize on some of the dip and we

14:56

could potentially go over to 2x

14:58

opportunities take advantage of those

15:00

with structured short-term trading. You

15:02

know that's important as well but my

15:04

point is if the red that you see in the

15:06

market and in the head of this SpaceX

15:08

IPO the number one thing to consider as

15:11

an investor today is that there's a

15:14

bigger picture here

15:16

than just the SpaceX. And I know there's

15:18

people that have these theories they say

15:21

it's the biggest,

15:22

um, sham with the SpaceX IPO. They're

15:25

going to have this big valuation, and

15:27

then what's going to happen is they're

15:29

going to,

15:30

um, go ahead and and they're going to

15:33

rug it, or everybody's going to sell."

15:35

First of all, nobody's selling for a

15:36

year, except for 5% of people that are,

15:39

you know, close friends and relatives,

15:40

apparently, as they just amended that

15:43

deal. So, that's not really an actual

15:44

big risk is a big, you know, sell-off

15:47

and rug pull, at least from the main

15:49

holders of SpaceX right now.

15:52

But, if you had to say it's a sham or

15:54

what have you, and a lot of people are

15:55

saying this is a, you know, uh, they say

15:58

that this is going to be the worst, you

16:01

know, dip after an IPO, and there's a

16:03

lot of news like that. The other thing

16:06

to consider, I mean, what companies can

16:08

go out and sign a sign a billion-dollar

16:10

per month deal with Google in

16:12

continuity?

16:14

A billion-dollar a month deal with

16:15

Google in continuity. I mean, we're

16:18

looking at, um, you know, the the types

16:21

of deals that they just happen to pull

16:23

out here with SpaceX while they're doing

16:26

a bunch of other stuff with this IPO.

16:28

Are they This is something that's

16:30

happening kind of naturally, but if

16:33

they're really scaling, they have the

16:35

largest supercomputer in the world with

16:37

XAI. So, if you were to look at, um,

16:41

you know, again, Supermicro Computer

16:43

XAI, and you were to look at the

16:45

Colossus, Supermicro Computer is

16:47

providing the liquid-cooled super

16:50

clusters for this deal

16:52

while they're down here on Earth. No,

16:54

I'm just kidding. At some point, who

16:55

knows? Maybe data centers up in in

16:57

space, but whatever happens. Aside from,

17:00

you know, that whole conversation, which

17:01

people say, "Are these ethical? They're

17:03

building uh huge data centers. Who's

17:05

going to be upset about all these big

17:07

data centers and all the energy that it

17:09

uses and things like that. Um, how

17:12

sustainable is it?" And I would say if

17:15

there's one thing to note about the

17:17

integrity about the companies, it's the

17:20

number one thing that we consider in

17:21

every company we invest in. And so,

17:24

while we want to make a lot of money and

17:25

we have made hundreds of percentage

17:27

points gains over the last 3 years, and

17:30

we've had investors that are following

17:32

the channel do the same.

17:34

I've also seen that the main reason we

17:36

we are looking at for example companies

17:39

like APLD is because they build in cold

17:42

places like North Dakota. They make sure

17:44

that the energy costs for locals

17:47

actually goes down when they build, and

17:50

they make sure they use a liquid cooling

17:52

solutions that are more efficient, not

17:54

as terrible for, [snorts]

17:56

you know, the local communities. They

17:58

use less energy essentially. That they

18:00

do it with

18:01

sustainable to the point of generation

18:04

solutions, meaning whether that's solar,

18:07

in some cases usually it's actually

18:10

hydroelectric or wind energy can

18:12

actually

18:14

combat some of the load. Solar is

18:15

actually less effective. But the point

18:18

is they might even build out more grids

18:20

that make the local communities actually

18:22

have their rates go lower. So, you want

18:24

to look at some of the integrity of the

18:25

companies that they are sticking to

18:27

their integrity as well. Also, look at

18:29

the integrity of to what they say to

18:31

actually what shows up on the balance

18:32

sheet. While there is a lot of, you

18:34

know, delays in what Elon says with a

18:37

lot of what what they you know,

18:38

announce, there's also been a lot of

18:40

things that have come true. The

18:42

self-driving has come true. It's been

18:44

really effective. I've done the

18:46

self-driving. You know, there are things

18:48

that take time for sure. But when you

18:50

look at what they say to what they do

18:52

financially, you know, Applied Digital

18:54

for example is a company that they were

18:56

coming out with these billion-dollar

18:58

deals, and people are saying, "Okay,

19:00

well, let's see if the revenue comes

19:01

in." The revenue absolutely ramps. The

19:04

revenue goes from, you know, 38 million

19:06

a quarter to over 150 million dollars

19:09

per quarter. And now they're ramping up

19:11

over 140% gains, you know, quarter over

19:14

quarter. You You could say the same with

19:15

companies like Iran as well, you know,

19:17

as they continue to ramp annually,

19:19

jumping up to 500 million in 2025 and

19:22

their revenues continue to ramp. And so,

19:24

while the deals come in, what I'm saying

19:26

is you're just seeing the front lines of

19:28

what's actually announced with this deal

19:31

with SpaceX. But, I think the reality is

19:34

is that we're we're in a technological

19:36

innovation period, where things are just

19:39

so much bigger than we could even

19:41

imagine. And so, I think the long-term

19:43

investing frontier for SpaceX is very,

19:46

very bullish. It's going to be excellent

19:47

for a lot of these companies and data

19:49

center companies, AI infrastructure,

19:51

defense. The short-term, you know,

19:53

you're looking at the volatility, you

19:55

have to consider the S&P 500 being at an

19:58

all-time high recently, getting up to

20:00

that, you know, 50% gain on the year.

20:04

Again, we haven't had that before. So,

20:05

you could get those pull-downs. But, my

20:07

point is again, the red is actually

20:09

good. Don't see it as a panic moment.

20:11

See it as a moment to actually build

20:13

good positions and realize that every

20:16

time we've seen those 20% corrections,

20:18

often times you've seen 40% recoveries

20:21

and rallies after the fact. The

20:22

long-term frontier investing looks good

20:25

in these markets and then the short-term

20:27

structured trades that have clear risk

20:30

to reward, meaning more profit than that

20:33

of your risk, is extremely important as

20:35

well. If you'd like me to actually work

20:37

with you on your portfolio and build

20:39

those systems for your short-term and

20:41

your long-term investing, then have a

20:42

look at the first link in the

20:44

description below and we can see if we

20:46

can work together. If you want to join

20:48

our daily live trading sessions Monday

20:50

through Friday, it's the second link in

20:52

the description below. And if you want

20:53

to get access to Prophecy, where we get

20:55

the best projections from top AIs in the

20:58

world with over 50% direction accuracy

21:01

from the best financial analysis in the

21:03

world, it's hard to sometimes keep up

21:05

with every single market. You got the

21:07

quantum markets, the semiconductor

21:09

markets, the data center, the robotic

21:11

markets. The only way that I found that

21:13

it's possible to actually keep up with

21:15

every single one of these markets and

21:16

get good analysis on every company is to

21:19

use prophecy. That's why we built it.

21:21

And you can get access in the third link

21:23

in the description below. If I earned

21:24

your thumbs up, hit the like button. Do

21:26

consider subscribing and I'll see you in

21:28

the next video. Take care.

Interactive Summary

This video provides an in-depth analysis of the current state of the space tech and AI infrastructure sectors, particularly in the lead-up to the SpaceX IPO. The speaker discusses market volatility, recent pullbacks, and the bullish long-term outlook for companies tied to AI data centers and space technology. Emphasis is placed on the strategic importance of AI integration within these sectors, including a notable partnership between SpaceX and Google, while encouraging investors to view market red days as potential opportunities for long-term position building.

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