As SpaceX begins its life as a public company, investors may be making a fundamental mistake by viewing it through the lens of traditional aerospace firms, according to Defiance ETFs Chief Investment Officer Sylvia Jablonski.
The comments come as Defiance launches the Defiance Daily Target 2X Long SpaceX ETF (NASDAQ:SPCU), a fund designed to provide leveraged exposure to Space Exploration Technologies Corp. (NASDAQ:SPCX) shares.
While concerns around valuation have dominated discussions surrounding the IPO, Jablonski argues that investors may be overlooking the breadth of the company’s business model.
SpaceX So Much More Than Launches
“The market is still thinking about SpaceX as a rocket company,” Jablonski said in an interview with Benzinga. “Six months from now, investors may increasingly view it as a multi-platform infrastructure company spanning launch, communications, defense, AI connectivity, and potentially space-based data services. There is so much more to SpaceX than just launches.”
That broader infrastructure narrative is central to Defiance’s bullish thesis. While skeptics have questioned whether SpaceX’s valuation already reflects overly optimistic growth expectations, Jablonski says many investors are relying on the wrong comparisons.
“Many investors are likely comparing SpaceX to aerospace peers. We think that’s too narrow,” she said. “SpaceX touches communications, defense, connectivity, AI infrastructure, and space commercialization. Using traditional aerospace multiples alone may miss significant portions of the business.”
She added that if Starlink subscriber growth, launch frequency, government contract wins and commercial demand continue accelerating while the stock trades like a conventional aerospace company, “the market is underappreciating the scale of the opportunity.”
Why Defiance Built SPCU
Defiance’s decision to launch a leveraged SpaceX ETF reflects the firm’s view of strong investor demand for targeted exposure to one of the market’s most closely watched companies.
“SPCU is designed for active traders and investors with strong short-term convictions,” Jablonski said. “It provides amplified exposure to daily moves in SpaceX, allowing sophisticated investors a tactical tool around one of the most anticipated listings in recent memory.”
The fund seeks to deliver 200% of SpaceX’s daily performance, making it distinct from traditional buy-and-hold ETFs. Jablonski emphasized that SPCU is intended for investors looking to take a short-term view of the stock rather than to gain broad exposure to the innovation economy.
For investors seeking a more diversified approach, she pointed to the Defiance Daily Target 2X Long XOVR ETF (BATS:XOVL).
“They serve different purposes,” she said. “SPCU is for investors seeking targeted, amplified daily exposure to SpaceX. XOVL provides leveraged exposure to the broader crossover and private innovation ecosystem. Investors bullish on innovation generally may prefer XOVL, while those with specific conviction around SpaceX may prefer SPCU.”
Jablonski also noted that volatility should be expected, particularly given the history of large IPOs.
“Volatility is common in major IPOs,” she said. “Active traders may view pullbacks as opportunities to express short-term views, while longer-term investors may focus on the fundamental story and broader adoption trends. The investment horizon matters.”
Beyond Rockets
Jablonski believes investors should increasingly focus on Starlink and connectivity-related businesses rather than launch services alone.
“Launch will remain important, but I expect investors to increasingly focus on Starlink and connectivity-related businesses,” she said. “The market may eventually view launch as the platform that enabled much larger opportunities.”
Among SpaceX’s various businesses, she identified Starlink as the segment most likely to exceed Wall Street expectations.
“The scale of global connectivity demand is enormous, and many regions still lack reliable broadband access,” Jablonski said. “The addressable market is likely larger than many investors appreciate. There are also massive relevant geopolitical factors at play pushing demand.”
She views Starlink as creating an entirely new connectivity market rather than merely competing with traditional telecom operators.
“There are billions of people and vast geographies underserved by traditional infrastructure,” she said. “Starlink expands connectivity rather than simply taking share.”
An AI Infrastructure Play?
Jablonski also argues that SpaceX deserves consideration as part of the AI infrastructure ecosystem. Semiconductor, power and data center companies traditionally dominate that category.
“AI needs semiconductors, power, data centers, and increasingly connectivity,” she said. “Data has to move globally. Space-based communications and resilient network infrastructure could become an increasingly important layer of the AI stack.”
She added that investors may be underestimating how AI growth could benefit connectivity providers.
“AI creates enormous demand for data transmission, connectivity, and network resiliency,” Jablonski said. “Those trends may support businesses that enable the movement and delivery of information, not just those that generate it.”
As a result, she believes SpaceX belongs alongside more traditional AI infrastructure names.
“Investors often focus on chips and power, but AI also requires communication networks,” she said. “Connectivity is infrastructure, and SpaceX has built one of the most significant connectivity platforms in the world.”
Looking ahead, Jablonski believes investors may ultimately focus less on whether SpaceX was expensive at IPO and more on how large the business became.
“History has shown that investors often underestimate transformative platforms,” she said. “Nobody knows the future, but if SpaceX continues executing at the pace we’ve seen, I think it’s more likely investors will be discussing how large the opportunity became rather than how high the valuation looked on day one.”
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