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Wednesday, June 17, 2026

I’ll Keep This Short… (Huge AI Opportunity)

AI was by far the biggest tech investing trend.

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Your friends,

The Traders Agency Team


 
 
 
 
 
 

Additional Reading from MarketBeat

The Biggest Opportunity From SpaceX’s IPO May Surprise You

Written by Jeffrey Neal Johnson. Date Posted: 6/10/2026.

SpaceX Falcon 9 rocket stands on a launch pad with the SpaceX logo overlaid.

Key Points

  • The SpaceX IPO is more than four times oversubscribed, leaving an estimated $225 billion in sidelined capital to rotate into public space stocks.
  • Rocket Lab, the most direct public competitor to SpaceX, reported 63.4% revenue growth in Q1 2026 and holds a $2.2 billion launch backlog.
  • Investors seeking diversified exposure to the space sector could consider the Procure Space ETF, which holds Rocket Lab, Redwire and others.
  • Special Report: Have $500? Invest in Elon’s AI Masterplan

You have probably seen the headlines about Senator Elizabeth Warren trying to delay the SpaceX IPO. While that makes for good political drama, the reality for investors is that the deal is almost certainly happening on Friday. The real story is not the political noise; it is the simple math of supply and demand. Getting your hands on SpaceX (NASDAQ: SPCX) shares will be nearly impossible for the average investor.

SpaceX's initial public offering is more than four times oversubscribed, meaning Wall Street's biggest players have placed orders for more than $300 billion in stock for a deal raising only $75 billion. When the dust settles, a staggering $225 billion (or more) in cash will be left on the sidelines from investors who wanted a piece of SpaceX but got locked out. That money will not just disappear; it is about to flood the rest of the publicly traded space sector.

What Happens When $225 Billion Needs a New Home?

After “33X” call, Jon Najarian reveals NEW Tesla prediction… (Ad)

Jon Najarian called Tesla a buy in 2014 before the stock climbed as high as 3,392%. He also called Palantir on live TV in 2020 before it surged as high as 2,000%.

Now Najarian has a new prediction centered on Elon Musk - tied to the anticipated SpaceX IPO and what he describes as a potential $44 trillion opportunity. He's sharing the specific moves he thinks investors should consider making now.

See exactly what Jon Najarian is predicting about SpaceX and Musktc pixel

All that money that could not buy SpaceX stock has to go somewhere. Big investment funds have mandates to invest in the aerospace sector, so they will immediately look for the next best thing. This creates a powerful sympathy bid, where the excitement and capital from a massive IPO spill over into related companies and lift their valuations.

Think of it this way: large investment funds are often required to keep a certain percentage of their assets in specific industries, such as aerospace. If they cannot get SpaceX, they cannot simply sit on that money. They have to find other space stocks to buy to stay on track with their investment goals. This predictable rotation of capital is what creates the opportunity. The challenge is knowing where to look.

Launchpads, Workshops, and Baskets

Navigating this spillover requires understanding the different types of companies that make up the space economy. Investors can generally break them down into three categories: launch providers, which are the sector's logistical backbone; infrastructure companies building the picks and shovels; and diversified funds that offer broader exposure.

Rocket Lab: The Established Rocket on the Pad

Rocket Lab (NASDAQ: RKLB) is the most direct public competitor to SpaceX in the small-to-medium satellite launch market. For large investors who need immediate exposure to the launch industry, Rocket Lab is the logical safe harbor.

Rocket Lab's financials show a strong foundation. The company has very little debt and plenty of cash on hand, which is crucial because it allows it to fund big projects, like its new Neutron rocket, without taking on risky loans.

The business is also growing at an impressive pace. Rocket Lab reported a 63.4% increase in revenue in the first quarter of 2026 compared to last year and already has a $2.2 billion backlog of scheduled launches. This predictable revenue stream is exactly what institutional investors look for when they need to deploy large amounts of capital quickly and safely.

Redwire: The Space Economy's Workshop

If launch providers are the trucking companies of space, Redwire Corporation (NYSE: RDW) is the company building the highways, warehouses, and tools.

Redwire specializes in critical space infrastructure, from solar arrays that power satellites to robotics and in-space 3D printing.

At first glance, Redwire's financials might look complex, showing negative profit margins and recent stock issuance. But it is important for investors to understand why those issues exist. Redwire is in high-growth mode, spending heavily now to build out unique technologies that could become the industry standard.

This is a classic picks-and-shovels play. Instead of betting on one specific mission, you are investing in the underlying hardware that everyone will need. The unusually high activity in the options market on June 10, 2026, suggests that some sophisticated investors are betting Redwire's big upfront investments are about to start paying off in the form of high-margin government and commercial contracts.

Don't Pick a Rocket, Buy the Whole Fleet

For investors who find picking individual stocks too volatile, another strategy is to buy a basket of companies all at once through an exchange-traded fund (ETF). This approach offers instant diversification across the entire industry.

A popular option is the Procure Space ETF (NASDAQ: UFO), a leading pure-play space ETF. This fund specifically targets companies that generate the majority of their revenue directly from space-related activities, such as rocket manufacturing, satellite communications, and launch services. Its holdings provide a broad cross-section of the industry, including Rocket Lab and Redwire. For investors seeking direct, yet diversified, exposure to the growth of the space economy, an ETF like UFO can be a compelling alternative.

Your Final Pre-Launch Check

For investors seeking exposure to the space economy, the key takeaway is to look beyond the immediate IPO frenzy. Chasing SpaceX stock on day one could be a volatile ride filled with institutional-level competition. A better approach is to research the established public companies that form the backbone of the space industry. Understanding these secondary players and how the coming wave of capital could affect them may offer a more grounded strategy for participating in the sector's long-term growth.


Additional Reading from MarketBeat

From Runway to Riches: Victoria's Secret's New Look

Written by Jeffrey Neal Johnson. Date Posted: 6/4/2026.

A Victoria's Secret branded black shopping bag with tissue paper sits inside a retail store.

Key Points

  • Victoria's Secret's management successfully executed a comprehensive operational overhaul that dramatically improved overall profitability and fundamental retail efficiency.
  • The strategic decision to revive the iconic brand identity is strongly resonating with consumers and driving substantial new customer acquisition.
  • Corporate leadership demonstrated immense confidence in the ongoing turnaround by significantly raising forward guidance and repurchasing equity shares.
  • Special Report: Have $500? Invest in Elon’s AI Masterplan

Victoria's Secret & Co. (NYSE: VSXY) just delivered a textbook operational turnaround, beating first-quarter analyst estimates and triggering a sharp short squeeze that punished overextended institutional bears.

By moving away from muted brand messaging and tightening inventory controls, management successfully restored pricing power despite a difficult macroeconomic backdrop. This strategic reset suggests that a focused specialty retailer can still thrive even as broader discount competitors face severe margin pressure.

After “33X” call, Jon Najarian reveals NEW Tesla prediction… (Ad)

Jon Najarian called Tesla a buy in 2014 before the stock climbed as high as 3,392%. He also called Palantir on live TV in 2020 before it surged as high as 2,000%.

Now Najarian has a new prediction centered on Elon Musk - tied to the anticipated SpaceX IPO and what he describes as a potential $44 trillion opportunity. He's sharing the specific moves he thinks investors should consider making now.

See exactly what Jon Najarian is predicting about SpaceX and Musktc pixel

The quarter validates Victoria's Secret & Co.'s aggressive restructuring and product pivot. It also highlights a sharp divergence across the retail sector, where discount dollar stores are struggling while select specialty turnaround stories are gaining momentum. For investors, Victoria's Secret's massive gap-up underscores a short-squeeze dynamic and shows how strategic rebranding can overpower macro consumer weakness when executed with precision.

Dressed for Success: The Margin Expansion Story

The catalyst for Victoria's Secret's re-rating was a first-quarter earnings report that decisively beat consensus on every key metric. Victoria's Secret reported a 15% year-over-year increase in net sales to $1.56 billion, comfortably ahead of the $1.52 billion analysts expected. The real story, however, was on the bottom line. Adjusted earnings per share (EPS) came in at 60 cents, representing an 87.5% upside surprise versus the 32-cent consensus estimate.

This level of profitability was not driven solely by top-line growth; it was engineered through a disciplined operational overhaul. Gross margins expanded to an impressive 37.6%, a direct result of management's focus on fundamental retail blocking and tackling. The margin improvement was fueled by two key tailwinds: significantly lower freight costs and tighter inventory controls.

By entering the quarter with a clean inventory position, Victoria's Secret avoided the margin-crushing promotional activity and widespread discounts that have plagued much of the retail sector. This strategy allowed for a higher mix of full-price selling, directly boosting profitability and sending a clear signal of renewed brand strength.

The performance was broad-based, with total comparable sales increasing by 13%, marking the fourth consecutive quarter of positive comps. This shows the brand's revival is resonating with consumers across its Victoria's Secret, PINK, and Beauty divisions. The international segment was a standout performer, with sales surging nearly 45% to $287.4 million, signaling a long runway for global growth and suggesting the new brand message has broad appeal.

Caught Off Guard: 26% Short Interest Fueled the Rally

The market's reaction was amplified by bearish institutional positioning heading into the report. Updated exchange data reveals that short interest had swelled to 26.7% of the publicly available float. A short position of this magnitude creates a coiled spring, where any positive surprise can lead to an explosive upward move. The bears were betting on continued consumer weakness and margin pressure, a bet that proved spectacularly wrong.

The subsequent price action was a classic short squeeze. The flood of positive news forced these bearish investors to buy back shares at any price to cover their losing positions. This frantic forced buying, combined with a fundamental re-rating from long-only investors, propelled the initial 42% valuation jump. Victoria's Secret's beta of 2.16, indicating volatility more than twice that of the broader market, further magnified the rapid price swings as momentum traders jumped into the trend.

After the initial explosive move, shares gapped down at the open on June 3. That was a standard technical pullback driven by profit-taking from early institutional longs and short-term traders. This price action establishes a new technical support level and may allow for a period of consolidation as investors assess Victoria's Secret & Co.'s new fundamental valuation before its next move.

Victoria's Secret Gets Its Voice Back

Underpinning the financial outperformance is a dramatic and decisive cultural pivot led by CEO Hillary Super. The turnaround strategy explicitly abandons the brand's recent diluted messaging, reviving its signature runway show and reinstating the core brand identity that once dominated the market. This move is designed to recapture cultural relevance and reclaim market share from smaller, niche competitors by confidently re-establishing its brand authority.

The recent ticker symbol change from VSCO to VSXY on June 2 was more than symbolic; it was a clear market signal of a definitive break from the past and the beginning of a new chapter focused on unapologetic growth. This brand reset appears to be working, as evidenced by double-digit new customer acquisition during the quarter, proving that consumers are responding positively to the brand's renewed confidence and clear messaging.

Betting on Itself: Bullish Forward Guidance and Buybacks

Management backed up its strategic vision with a significant upward revision to its full-year guidance. Victoria's Secret now expects fiscal 2026 net sales between $7.03 billion and $7.13 billion. More importantly, adjusted operating income guidance was raised to a range of $550 million to $580 million, a substantial increase from the previous target of $430 million to $460 million. This reflects strong leadership conviction in the sustainability of its margin improvements.

Further bolstering this confidence is the capital allocation strategy. Victoria's Secret repurchased 2.2 million shares for $100 million in the first quarter, with $150 million remaining under the current authorization. This signals a strong belief from management that the stock remains fundamentally undervalued, even after the recent rally.

Given the significant operational improvements and upwardly revised guidance, investors may want to add Victoria's Secret & Co. to their watchlist to track whether the margin expansion momentum continues into the next fiscal quarter. While the macro environment remains challenging, the specialty retailer has demonstrated a clear ability to execute a best-in-class retail turnaround.

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