SpaceX is the frothiest trade ever and bleeds into other sectors, says S3 Partners' Bob Sloan
Speakers
Bob Sloan
— Founder and Managing Partner, S3 Partners
Brian Sullivan
— Anchor, CNBC (Last Call / Power Lunch)
Summary
Bob Sloan of S3 Partners argues SpaceX has become the frothiest and most influential trade in markets, with short interest collapsing from $32 billion to $24 billion in 60 days. He says SpaceX bleeds into other sectors and notes short covering in names like CoreWeave. S3 is also seeing SpaceX-adjacent stocks such as Viasat and Planet Labs skew long.
- Host notes Cisco is up about 3% into earnings and asks about a rebound in the memory/DRAM trade.
- Bob Sloan says SpaceX 'rules all' and is probably the frothiest trade ever.
- Short interest bets on SpaceX/space fell from $32 billion to $24 billion in 60 days.
- SpaceX's moves bleed into technology, software, memory and other sectors.
- Short covering is occurring across the board, including CoreWeave.
- S3 is watching active long/short ratios in SpaceX-adjacent names; Viasat and Planet Labs are skewing long.
Ideas
CoreWeave seeing short-covering flow
Short covering is happening across the board, and Bob specifically names CoreWeave as one of the stocks seeing that covering, suggesting positioning-driven upside in AI/cloud momentum names.
SpaceX is frothiest cross-sector trade
SpaceX has become the market's center of gravity and is probably the frothiest trade ever, with short interest bets collapsing from $32 billion to $24 billion in 60 days. Because everyone owns the massive IPO and it spans launch, satellite, AI and other sectors, its moves bleed into technology, software, memory and other stocks.
