MORGAN STANLEY: The sharpest correction in the memory industry to date appears to have ended, shifting focus to buybacks as the next catalyst.
In short:
July sell-off → market prices a downturn → but revision breadth already peaked → de-rating runs ahead of actual EPS →
The full theory in one line:
SPCX lock-up → proxy shorting of $RKLB → unlock approaches → proxy shorts unwind → RKLB rally
If enough locked holders do this, and the market broadly expects heavy selling when $SPCX unlocks, the whole space sector trades heavy. Proxy shorting
thank you folks for sharing the knowledge with me.
$SPCX locked holders are actually not allowed to short $SPCX to lock the gains beforeahead.
But they can short the basket or ETF of space tech instead.
This creates great opportunity for $RKLB today.
JP MORGAN: $SPCX Strong Debut with AI & Compute Driving Accelerated Growth; Raises PT to $240
JP Morgan is betting that SpaceX's AI and compute economics more than justify the accelerated spend, and the higher $240 target, built on the pull-forward to $1T by 2030, reflects that.