Billionaire investor and Shark Tank judge Kevin O’Leary is keeping Space Exlporation Technologies Corp. (NASDAQ:SPCX) firmly on his radar after passing on his initial IPO allocation, saying he could begin building a position once the SpaceX stock’s post-IPO volatility settles.
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For ETF investors, however, there is no need to wait for SpaceX to become less volatile. A growing lineup of leveraged ETFs is already offering traders amplified exposure to SpaceX — including products designed to profit from both rising and falling shares.
O’Leary Could Buy SpaceX Within 60 Days
O’Leary said he may start accumulating SpaceX over the next 30 to 60 days, after previously declining his IPO allocation because liquidity was important to him.
He believes the stock could settle around the $100-$110 range as the initial post-IPO volatility fades.
But his investment thesis goes well beyond SpaceX’s traditional space business. O’Leary sees the possibility of Elon Musk eventually bringing SpaceX closer to his broader technology empire, including Tesla, artificial intelligence, robotics and autonomous vehicles.
That makes SpaceX a potentially much broader technology bet than its aerospace roots suggest.
SpaceX ETFs Turn Up the Leverage
That broader thesis is already being reflected in the ETF market.
Defiance Daily 2X Space ETF (BATS:SPCL) and T-REX 2X Long SPCX Daily Target ETF (NYSE:SPAX) provide leveraged bullish exposure to SpaceX, seeking roughly twice the stock’s daily performance before fees and expenses. The ProShares Ultra SpaceX (NYSE:SPCF) also targets 2X daily exposure to SPCX.
For traders expecting a decline, the freshly launched Direxion Daily SpaceX Bear 2X ETF (NYSE:LOFD) provides inverse leveraged exposure, seeking roughly twice the opposite of SpaceX’s daily move.
These products are designed for short-term trading rather than traditional buy-and-hold investing because daily leverage resets can cause returns over longer periods to diverge significantly from simply multiplying SpaceX’s cumulative performance.
AI Adds Another Layer to the SpaceX Story
O’Leary’s interest comes as SpaceX increasingly positions itself as an AI infrastructure player.
The company reportedly spent $15.8 billion on AI infrastructure in the second quarter, accounting for most of its $18.4 billion in total capital spending. AI revenue more than tripled to $2.6 billion, while SpaceX has secured another $6.7 billion in cloud contracts since the quarter ended.
The company also expects capital spending to remain elevated as it builds additional computing capacity, Starships and next-generation Starlink satellites.
For investors, that creates a particularly intriguing setup: O’Leary is waiting for SpaceX’s IPO volatility to cool before potentially buying the stock, while ETF issuers are giving traders increasingly aggressive ways to bet on the next move.
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