Space Stocks Are Crashing Before The SpaceX IPO — Don’t Miss This
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So, space stocks remain one of the most
exciting sectors in the market heading
into week two of June. And if you're
investing in the space stocks right now,
whether it's defense companies,
satellite communications, launch
providers, golden dome, AI
infrastructure, any of the AI data
center companies, this is for you. This
is a growth cycle that might not be
done. I know we see some pullbacks into
Friday. The data in the Fed looks okay.
The job reports look good, but then
Broadcom came out with some earnings
that did not look so good. And not that
the earnings were bad, but the
projections for the revenue were not
that great. So, building some momentum,
looking at the catalysts ahead of the
SpaceX IPO, and where the names are that
we'd really want to have our attention
on right now is important. That's
exactly why I built Prophecy as well. If
you'd like to stay up to date with the
best AI companies, data center, space
tech companies, this is the exact app
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over 10 plus positions here in the last
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below. So, let's jump into the top
companies we're watching in the space
tech IPO. You got this big surge on SPY.
You have that potential for the
correction and not the super hyper
bullish move in SPY. And you have the
Broadcom uh earnings that came out with
lower revenue guidance last week that
really kind of put the not nail in the
coffin, but twisted the knife a little
bit in the in the dagger that was also
dropped in relation to the huge Blue
Origin explosion. Also, ever since that
explosion, we've seen some sell-offs in
the space tech market. Rocket Lab is
down from $151 a share down to this
level at around 106, 105. And this is
actually what we were anticipating into
our last Space Tech video when we went
over top space stocks last week is that
we could see that momentary pullback.
And one thing to note, it's not that
we're seeing a guaranteed continuation
into the SpaceX IPO here, but it is
something to consider that a lot of
times, especially with companies like
Rocket Lab that we've been covering
since $3 a share and I've been investing
in it since that time as I have friends
that work there.
I've been heavily involved in
a lot of space conferences to be able to
get information on this company and
other companies like Redwire and LUNR
and Planet Labs for a few years now. We
started the channel here about a year
and a half ago and it's been a crazy
year and a half. We've grown over 35,000
subscribers. Thanks for subscribing. My
wife and I are expecting a little one
here and we just got a ultrasound today.
It was super fun. You know, time's
passing and the cool part is is that all
the companies we've been covering over
the last few years, for the most part,
have more than 100%
gained up in the last 12 months, which
is great. But every time that Rocket Lab
has continued up, they kind of broke out
and then that previous resistance, the
rising resistance level, starts to act
as a support in bullish situations. So
right now that rising resistance level
on Rocket Lab, which is kind of the
closest asset to SpaceX that we can
currently track that's a publicly traded
company that almost always tracks 1/10
of that of the market cap of
SpaceX. So with their recent pullback
from $151
to now selling down all the way here to
107 bucks a share, they're now
approaching that previous rising
resistance level that's going to be here
at $100. So there is that possibility we
get that strong kind of bottom, which we
actually did see a little bit of a
bottom. You could see it sloped down
further towards end of Friday, but we
were starting to to maybe see a little
bit of a slow down from that sell off,
but nope, it's still kind of selling
down. But, you got that previous
resistance potentially acting as a
support. And the Space Tech or SpaceX
IPO, you know, if things go well,
there's a couple things to consider. The
biggest bear case that we don't see with
the SpaceX IPO is that these companies
are tracking SpaceX, SpaceX IPOs sells
off big, and some of these companies
that are trading even at premiums like
ASTS,
well, now it's back down from 133 down
to 92. And like Planet Labs, that was
just up there around $55 a share, that's
now sold back down to the support level
at 31. Big sell off after making that
move up to 54. Continue to sell down and
that they don't recover until after
SpaceX recovers from whatever dip
happens at IPO. Now, that's what a lot
of people kind of expect is that we're
going to see this kind of hype here, and
then IPO happens, and then the whole
Space Tech market kind of dips like most
IPOs, and then some of these companies
take years to recover. Now, that's one
way to look at it. There is this other
way to look at it. And this is something
that I think a lot of people miss. The
red is actually good. You're meant to
see fear, and red is obviously meant to,
you know, instill some panic. But, every
time that the market's pulled back,
let's say 20%, it's always been followed
by a 40% rally. There has never been a
time
where the Space Tech market has pulled
back, you know, 20% and hasn't recovered
40%. It It's happened every single time.
So, with this big pullback that we see,
we get these sell downs. again, $54
range back down to 28. That's a 40%
sell-down, again.
Never have we not seen the recoveries
kick in. Now, the timing is kind of
interesting. It's almost like
stagflation when you have, you know, you
know, oil interest rates, and then you
have inflation in the United States, and
then you have cost of goods and job
reports, all kind of conflicting. It's
kind of hard to read, you know, what's
happening in the economy. That That was
something we saw between 2022 2024. That
was a That was a bear case, right? Right
now, we kind of have this um It's kind
of like that, but there's some bulls.
There's more bull catalysts than I would
say bear catalysts. One of the recent
ones that's going to tie into the SpaceX
market. And I I I want you guys to
realize this.
The top space stock companies we're
watching for this week into week two,
they're the same. They include Rocket
Lab and Blacksky and LUNR and ASTS and
RD W Redwire and Planet Labs. Because
these companies are going to be building
infrastructure. They're already seeing
revenues. They're very solid. But one of
the top space companies, if you go back
two years on a or a year and a half,
we've had this channel for a year and a
half, when we first started covering
space stocks, AMD almost always made its
way into the top five space stocks. Do
you guys know why? It was because AMD
provides the microchips
for Starlink to function, SpaceX's
company. And we talked about this a
while. If you look at some of the the
articles, you could see even our videos.
Look at that, over a year ago, when we
were covering this. Even back in 2024.
You see that? That was one of our first
videos there. AMD powering Starlink, and
how we were so bullish on not just the
data center market, but that they were
going to grow there. Now, you might say,
"Will, okay, okay, okay. I don't know
what this has to do with the space tech
market. We're talking about the SpaceX
IPO. All right, they're powering
Starlink, but what does AMD have to do
with any of this? And again, thank you
guys. I love when like we see our
recommendations in the Google. I
appreciate you all. Just means we're
covering stocks of integrity and and we
appreciate it.
Again, the reason why it's important is
because when you're looking at the moves
that are playing out ahead of the SpaceX
IPO, there's some data that you should
probably know. For example, SpaceX has
recently merged with a large portion of
xAI, which means the largest
supercomputer in the world, x Colossus,
xAI Colossus, which is also powered by
Supermicro Computer, which they may have
sold off recently. We want to watch
them.
Is partnered now, you got to check this
out. Google just took out a huge loan.
Google took out a loan in the last week.
So, let's also, before we get there, I
just want to also, let's just search
this up real quick.
Google is doubling down.
In recent news, if you look at Google
here,
they've been taking out loans and into
the last few weeks. I don't know where
it is exactly.
Um let's see. Google
takes out a loan here. Let's see if we
can find some recent information on
this. You got February, you got some
other ones. I think it was a $60 billion
loan. I got to find where it was
exactly.
Um
but here's what I'm saying is that
SpaceX just signed a deal with Google in
the last day. And this is, if you look
at the headlines, just $920 million
per month, so nearly a billion dollars,
starting in October 2026,
where SpaceX is giving, you know,
they're now partnered with xAI, they're
providing Nvidia GPU and CPU access to
over 110,000
units for Google to be able to run their
business and scale up. So, when you look
at SpaceX, and this is what we're
talking about why AMD was one of the top
space companies. Why Why you look at the
space companies and you say,
"Okay,
why would Google do this?" Well,
XAI is or SpaceX is not just
SpaceX.
SpaceX is an AI company as well. And
they've already signed a billion-dollar
deal here with Google. Now, you might
say, "Well, that's cool, but what about
7.7 or 1.7 trillion-dollar IPO or what
have you?" That's That's a factor, but
if you look at the IPO filing they
recently amended, they've changed some
things in how many people are able to
sell, 5% of people are able to sell
right away.
The reason that I bring this up isn't
because it means everything's bullish,
but it does mean that when you're
looking at the SpaceX IPO, you have
things like the Google contract here for
billion dollars a month essentially, 12
billion dollars a year,
that are going to be going in um
just with Google alone. And then you
have the uh So, that might actually
propel them. That That brings in a whole
'nother market of people watching AI
infrastructure. What is the fastest
growing market over the last year? It's
AI infrastructure. AI data centers. The
AI data center investors and
semiconductor investors are now going to
be looking They're They're basically um
not going to be blind to the fact that
SpaceX is in that market as well. So,
when we look at companies like, you
know, Rocket Lab or you're looking at
Redwire, which is a top company in the
defense market, and they are doing
NASA's Artemis 2, and you look at, you
know, LUNR where they're doing the
connections between the different uh
uh space infrastructure, kind of like
almost taxiing
and and connecting the different
infrastructure that's up in space. Or
you look at BlackSky with their, you
know, AI analysis of down on Earth,
where they're starting to
deploy these extremely high-resolution
satellites, and they're doing that as
well through Rocket Lab. So, Rocket Lab
is getting up there doing dozens of
launches almost every quarter it seems
they're they're having dozens of
launches. You can look at their
recent missions as recently as May 22nd.
So, in this last month, they're
launching Electron. You can see some of
their recent launches there. They're
end-to-end is that with this big growth,
it's actually um
interesting that people are looking at
just the space tech. The space tech is
big, but the financials and where
they're at for a lot of these companies,
they're still super solid. You've got a
billion dollars in equity for assets on
Redwire with income growing up to
revenues surging. Revenues are growing
massively. Their market cap still just
1.75 billion.
If you look at Rocket Lab, you know,
they're normally tracking about 1/10 the
size of SpaceX. That's changed a little
bit because I remember a year and a half
ago, Rock or SpaceX was at $250 billion
in valuation. So, just in the last year
and a half, they've gone from 250
billion to 1.7 billion or trillion. How
did they do that? How did they, you
know, 5x, 6x, 7x actually from where
they were? Well, they merged a lot of
their business and now they have XAI as
a
big piece of their IPO. So, this isn't
just the space tech market. So, just
something to consider, you know, if
we're seeing massive pullbacks, for
example, in
data center markets, and you get some
data center companies like I
our top companies we cover like I ran in
MBIS and Keel where you see APLD pulling
back from all-time highs at $50 down to
38 and you see even Super Micro again
they're actually providing the
infrastructure for
they're one of the top ones we've been
covering for a bit they've made some
good recoveries but they haven't even
made their run back to previous highs at
$120 a share. But the my point is is
that the green is actually would be a
little scary right now. It's great that
we see some red in the markets. Most
people panic and sell but my point is as
well while it's been extremely volatile
in these markets and you see companies
you know up and down by 15 20% per day
in their swings that every time we've
seen these big pullbacks if we do get
them we've always seen the recoveries.
And so if there was a time when there
was going to be an IPO that wouldn't
just sell off and you you you got to be
prepared for that. You got to have
differentiation between you know an
actual trade and what you're willing to
do versus your forever stocks you're
going to hold and hold grow to hundreds
of thousands or millions of dollars and
then you know take loans against them
because you're never going to sell those
stocks like that type of investments is
how I approach a lot of these space
companies a lot of these data center
companies I just continue to hold. And
then we trade them. So we also trade
them in the short term if we want to
capitalize on some of the dip and we
could potentially go over to 2x
opportunities take advantage of those
with structured short-term trading. You
know that's important as well but my
point is if the red that you see in the
market and in the head of this SpaceX
IPO the number one thing to consider as
an investor today is that there's a
bigger picture here
than just the SpaceX. And I know there's
people that have these theories they say
it's the biggest,
um, sham with the SpaceX IPO. They're
going to have this big valuation, and
then what's going to happen is they're
going to,
um, go ahead and and they're going to
rug it, or everybody's going to sell."
First of all, nobody's selling for a
year, except for 5% of people that are,
you know, close friends and relatives,
apparently, as they just amended that
deal. So, that's not really an actual
big risk is a big, you know, sell-off
and rug pull, at least from the main
holders of SpaceX right now.
But, if you had to say it's a sham or
what have you, and a lot of people are
saying this is a, you know, uh, they say
that this is going to be the worst, you
know, dip after an IPO, and there's a
lot of news like that. The other thing
to consider, I mean, what companies can
go out and sign a sign a billion-dollar
per month deal with Google in
continuity?
A billion-dollar a month deal with
Google in continuity. I mean, we're
looking at, um, you know, the the types
of deals that they just happen to pull
out here with SpaceX while they're doing
a bunch of other stuff with this IPO.
Are they This is something that's
happening kind of naturally, but if
they're really scaling, they have the
largest supercomputer in the world with
XAI. So, if you were to look at, um,
you know, again, Supermicro Computer
XAI, and you were to look at the
Colossus, Supermicro Computer is
providing the liquid-cooled super
clusters for this deal
while they're down here on Earth. No,
I'm just kidding. At some point, who
knows? Maybe data centers up in in
space, but whatever happens. Aside from,
you know, that whole conversation, which
people say, "Are these ethical? They're
building uh huge data centers. Who's
going to be upset about all these big
data centers and all the energy that it
uses and things like that. Um, how
sustainable is it?" And I would say if
there's one thing to note about the
integrity about the companies, it's the
number one thing that we consider in
every company we invest in. And so,
while we want to make a lot of money and
we have made hundreds of percentage
points gains over the last 3 years, and
we've had investors that are following
the channel do the same.
I've also seen that the main reason we
we are looking at for example companies
like APLD is because they build in cold
places like North Dakota. They make sure
that the energy costs for locals
actually goes down when they build, and
they make sure they use a liquid cooling
solutions that are more efficient, not
as terrible for, [snorts]
you know, the local communities. They
use less energy essentially. That they
do it with
sustainable to the point of generation
solutions, meaning whether that's solar,
in some cases usually it's actually
hydroelectric or wind energy can
actually
combat some of the load. Solar is
actually less effective. But the point
is they might even build out more grids
that make the local communities actually
have their rates go lower. So, you want
to look at some of the integrity of the
companies that they are sticking to
their integrity as well. Also, look at
the integrity of to what they say to
actually what shows up on the balance
sheet. While there is a lot of, you
know, delays in what Elon says with a
lot of what what they you know,
announce, there's also been a lot of
things that have come true. The
self-driving has come true. It's been
really effective. I've done the
self-driving. You know, there are things
that take time for sure. But when you
look at what they say to what they do
financially, you know, Applied Digital
for example is a company that they were
coming out with these billion-dollar
deals, and people are saying, "Okay,
well, let's see if the revenue comes
in." The revenue absolutely ramps. The
revenue goes from, you know, 38 million
a quarter to over 150 million dollars
per quarter. And now they're ramping up
over 140% gains, you know, quarter over
quarter. You You could say the same with
companies like Iran as well, you know,
as they continue to ramp annually,
jumping up to 500 million in 2025 and
their revenues continue to ramp. And so,
while the deals come in, what I'm saying
is you're just seeing the front lines of
what's actually announced with this deal
with SpaceX. But, I think the reality is
is that we're we're in a technological
innovation period, where things are just
so much bigger than we could even
imagine. And so, I think the long-term
investing frontier for SpaceX is very,
very bullish. It's going to be excellent
for a lot of these companies and data
center companies, AI infrastructure,
defense. The short-term, you know,
you're looking at the volatility, you
have to consider the S&P 500 being at an
all-time high recently, getting up to
that, you know, 50% gain on the year.
Again, we haven't had that before. So,
you could get those pull-downs. But, my
point is again, the red is actually
good. Don't see it as a panic moment.
See it as a moment to actually build
good positions and realize that every
time we've seen those 20% corrections,
often times you've seen 40% recoveries
and rallies after the fact. The
long-term frontier investing looks good
in these markets and then the short-term
structured trades that have clear risk
to reward, meaning more profit than that
of your risk, is extremely important as
well. If you'd like me to actually work
with you on your portfolio and build
those systems for your short-term and
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Ask follow-up questions or revisit key timestamps.
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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