Earnings season is pretty much wrapped up. With about 90% of S&P 500 companies having reported, Q2 earnings are coming in a lot stronger than expected. Excluding the investment gains from $Alphabet(GOOGL)$ and $Amazon.com(AMZN)$ , EPS growth is tracking around +30% YoY, compared to the ~22% estimate from July 1. Include those gains, and growth approaches +50%. On top of that, 76% of companies have beaten EPS estimates, which matches last quarter's strongest beat rate since 2021. The earnings backdrop looks stronger than the headlines suggest.
I don't really get the case for buying SPCX. Space as a sector is going to do well, and the picks-and-shovels play is where the real upside is. That's why I went with RDW. It trades at 5 P/S, while SpaceX is at 120 P/S, so it looks more than 20 times undervalued in comparison. Redwire does roll-out solar arrays in space, drones used in the Ukraine war, sensors for the Mars rover, cameras on Artemis, 3D printing, drug manufacturing in space, greenhouses, robotic arms, VLEO satellites, and a lot more. The original US space companies came together to form Redwire. Their Elsa solar panels are even superior to the SpaceX panels on Starlink Version 3. VLEO alone is another path that could lead to multi-billion dollar revenue down the line. Redwire has a lead in multiple areas. It's the original
$Alibaba(BABA)$ It's hard to picture a situation where a stock gets a string of positive news, shifts its whole story, and starts climbing, yet someone keeps buying puts day after day as it rises.