SpaceX’s steep share price fall, heavy short selling and the pressure around its first earnings report have pushed downside protection and hedging tools into the spotlight. When a company with more than $500b in market cap wiped off experiences this kind of volatility, investors often look beyond the headline stock and toward products that can help manage risk or express a cautious view. This article walks through 3 stocks from a Short Sellers and Downside Protection Strategies screener that are closely tied to this SpaceX news and may be relevant if demand for hedging and bearish tools grows.

Groupe Dynamite (TSX:GRGD)

Overview: Groupe Dynamite is a Montreal based retailer that designs and sells women’s fashion through its Dynamite and Garage brands across Canada, the United States and the United Kingdom, using both mall based stores and online platforms such as Garageclothing.com and Dynamiteclothing.com. Its assortment spans everyday apparel, accessories and beauty products aimed at young women.

Operations: Groupe Dynamite generates about CA$1.39b in revenue primarily from retail apparel, with roughly CA$581.6m from Canada and CA$809.3m from the United States.

Market Cap: CA$6.1b

Groupe Dynamite stands out in a market that is suddenly very focused on risk control, because it couples rapid earnings growth with a model that leans heavily on data driven merchandising and fast inventory turns. Recent results show higher margins and strong online traction, supported by campaigns that keep Garage and Dynamite highly visible with younger shoppers. At the same time, you are dealing with a fashion retailer that relies on discretionary spending, aggressive store expansion plans and heavy marketing, so a softer consumer backdrop or weaker new store performance could hit returns quickly. For investors watching the fallout from SpaceX volatility and thinking about where growth and downside protection might intersect, this is where the story starts to get interesting.

Groupe Dynamite’s fast turning model and strong online traction suggest that the headline story might only be half the picture. Put its growth and downside risks in context with the 4 key rewards and 1 important warning sign

IP Group (LSE:IPO)

Overview: IP Group is a London based private equity and venture capital company that backs science focused businesses, using its own capital and third party funds to support early stage and growth companies in areas such as energy, healthcare, deeptech, cleantech and life sciences across Europe.

Operations: IP Group reports most of its revenue from the Healthier Future segment at about £125m, while other venture investing segments and its interest in Oxford Nanopore currently report small losses and third party fund management contributes around £8.2m.

Market Cap: £550.4m

IP Group sits at the junction of high profile science IPOs and rising demand for hedging tools that often follows sharp post listing moves such as the recent SpaceX sell off. The company provides diversified exposure to university spin outs and later stage assets in health, climate and deeptech. Recent M&A interest from Railways Pension Trustee Company indicates that external investors see value in its portfolio and fee platform. At the same time, the story still depends on successful exits, funding access for holdings such as Oxford Nanopore and Istesso, and a share price that has trailed the wider UK market. The key issue for shareholders is how these factors translate into cash realisations, earnings and potential downside protection.

IP Group’s mix of science assets and fresh takeover interest has many investors asking what they might be missing. See how the full picture lines up in the analysis report for IP Group

Victoria's Secret (VSXY)

Overview: Victoria's Secret & Co. is a global specialty retailer of women’s intimates, sleepwear, loungewear, swimwear and beauty products, selling through Victoria’s Secret, PINK and Adore Me stores, its own branded websites and third party digital channels, as well as franchise, license and wholesale partners.

Operations: Victoria's Secret generates about US$6.8b in annual revenue from specialty retail, with roughly US$5.5b from the United States and US$1.2b from outside the US.

Market Cap: US$7.0b

Victoria's Secret has become a focal point for investors looking at downside protection tools because it sits at the heart of inverse ETFs that aim to profit from sharp market pullbacks like the recent SpaceX driven volatility. The business is in the middle of a broad brand refresh and omnichannel push, with data driven marketing and shorter product cycles designed to support earnings momentum, even while tariffs, high debt and activist pressure keep risk elevated. Recent coverage highlights strong recent share price gains, improved outlooks and raised analyst targets, but also flags insider selling and a volatile trading pattern. If you want to understand whether this mix of turnaround progress and financial leverage can really hold up when markets turn, you are only seeing part of the picture so far.

Victoria's Secret is working to translate brand repair, new formats, and omnichannel reach into earnings power while focusing on short-cycle products. Get the full risk and upside story in the analysis report for Victoria's Secret

The three stocks in this Short Sellers and Downside Protection Strategies idea are just the starting point. The full Short Sellers and Downside Protection Strategies screener surfaced 23 more companies with equally compelling narratives around hedging, short exposure and downside tools. Use Simply Wall St to analyze these stocks, filter for the specific catalysts and narratives that matter to you, and identify the highest conviction plays for your own watchlist.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.