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With SpaceX Earnings Looming, a Big Test for This ETF

BY | ETF Database
9:22 am ET 08/03/26 | 17 VIEWS
This week promises to be another eventful one on the earnings front with one of the big-time reports being the first from Space Exploration Technologies (SPCX). The newly public rockets and satellites company steps into the earnings confessional for the first time on August 4, after the close of U.S. markets.It could be an ideal time for Elon Musk’s company to allay some investor concerns, and the perfect opportunity for aggressive short-term traders to consider the newly minted Direxion Daily SpaceX Bull 2X ETF (LOFF). LOFF, which came to market on June 15, attempts to deliver 200% of the daily returns of SpaceX stock. Already one of the leaders in the geared SpaceX ETF camp, LOFF could be in play this week with some traders potentially willing to bet that mega-cap growth stocks rebound, following a multi-month stretch of weakness. “The selloff comes amid declines in many stocks at the center of the AI trade,” noted Tom Lauricella of Morningstar. “That includes semiconductor and other hardware stocks, which had seen gains well in the triple digits earlier this year, as well as declines in mega-cap hyperscalers like Alphabet…and Meta Platforms… For SpaceX, the relevant concern is whether the massive investment in the AI buildout will generate the returns needed to support valuations.”Is It Time to Love LOFF?As a play on SpaceX earnings, LOFF is in an interesting position because this is the company’s first report, meaning analysts don’t have comparisons to work with. That said, traders considering the Direxion ETF will want to monitor commentary on the Starlink unit, which Morningstar analyst Nicolas Owens deigned the primary earnings driver for a company that’s not yet profitable. “Starlink is currently the earnings engine for the company, and it can partially fund the AI expansion plans. In the second quarter, we are looking to see what kind of trendline for subscriber growth they are experiencing,” noted Owens. Traders mulling LOFF should also note that SpaceX has artificial intelligence (AI) exposure, and related commentary is likely to be important, particularly when considering the recent slide experienced by some established AI equities. “Amid the market’s widespread questions about the monetization of AI investments, SpaceX’s AI segment revenue will be a big unknown, though it’s a relatively small part of the company’s overall profit equation,” added Lauricella. “In 2025, the AI business pulled in $3.2 billion in revenue, and in the first quarter of 2026, sales totaled $818 million."For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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