SpaceX’s first earnings report as a public company has landed with a mix of rapid revenue growth, heavy AI interest and sharp share price swings. That combination is already reshaping how investors think about stocks linked to AI infrastructure, data centers and index-linked exposure. Some companies may see fresh demand as AI deals expand, while others could feel the weight of post-IPO volatility, short selling and shifting passive fund flows. This article examines three stocks exposed to the SpaceX news, including one that may be positioned to benefit and two where the risks may be harder to ignore.

Invesco QQQ Trust Series 1 (QQQ)

Overview: Invesco QQQ Trust Series 1 is an exchange traded fund that aims to mirror the performance of the NASDAQ 100 Index by holding a portfolio of large cap growth and value stocks, heavily concentrated in technology, communication services and other major sectors. When you buy QQQ you are getting broad exposure to many of the largest non financial companies listed on Nasdaq in a single trade.

Operations: QQQ reports about US$2.4b in revenue from unclassified services, with all of it currently generated in the United States.

Market Cap: US$481.6b

Invesco QQQ Trust Series 1 sits at the center of the AI and data center story, yet the picture is far from straightforward. The fund is tied to NASDAQ 100 heavyweights that gain from AI infrastructure and cloud demand. It now also carries SpaceX exposure after the company reported rapid AI related revenue and then suffered a sharp share price decline with high short interest. QQQ screens as cheap on a 6.7x P/E and a large gap to one DCF based fair value estimate. However, the trust recently reported a very large one off gain and a sizeable net loss that make the earnings quality harder to read. Add in a quarterly dividend and investors have plenty to weigh up before deciding how comfortable they are with this mix of opportunity and pressure.

Invesco QQQ Trust Series 1 looks cheap on a 6.7x P/E, but a very large one off gain and sizeable net loss can easily distort the story. Before assuming the headline multiple is a gift, take a hard look at the DCF valuation analysis for Invesco QQQ Trust Series 1

ARK ETF Trust - ARK Innovation ETF (ARKK)

Overview: ARK ETF Trust - ARK Innovation ETF is an actively managed fund that targets companies across themes like artificial intelligence, genomics, fintech, next generation internet and space related technology. It aims to give investors concentrated exposure to high growth disruption in a single product.

Market Cap: US$5.7b

ARK ETF Trust - ARK Innovation ETF is built for big swings, and the current backdrop shows why caution matters. Exposure to high growth tech and space related stocks means sharp moves in SpaceX and similar companies can quickly feed into ARKK’s price, especially when market sentiment turns against richly valued stories. The fund is unprofitable, has a negative Return on Equity and carries a higher risk funding structure with all liabilities tied to external borrowing. In addition, data gaps make it harder to judge earnings quality, assess growth prospects or compare valuation cleanly. For investors, the key consideration is whether the potential upside from concentrated disruption themes justifies accepting this mix of volatility and limited transparency.

ARKK’s story of concentrated disruption sits on a foundation of unprofitable holdings, negative Return on Equity, and borrowed funding that could amplify stress if sentiment turns. Before leaning into the hype cycle, read the ARK ETF Trust - ARK Innovation ETF financial health report

Alphabet (GOOGL)

Overview: Alphabet is the parent company behind Google Search, YouTube, Android and a fast growing cloud and AI platform, earning most of its money from digital advertising while also selling cloud services, subscriptions and devices across the United States and other global markets.

Operations: Alphabet generates most of its US$446.0b in revenue from Google Services at about US$367.1b, followed by Google Cloud at about US$77.6b, with smaller contributions from Other Bets and unallocated hedging gains or losses.

Market Cap: US$4,562.3b

Alphabet provides exposure to core AI infrastructure through Google Cloud and Gemini, plus a cash rich ad business that currently runs at very high profit margins and strong returns on equity. Revenue growth has been rapid and the stock is priced below at least one long term cash flow estimate and below many peers, even as Google Cloud’s AI backlog and external TPU deals keep expanding. On the other hand, there is heavy AI and data center spending that has already pushed free cash flow negative in some periods, alongside ongoing regulatory cases and forecasts that point to softer earnings ahead. For investors, the key question is whether Alphabet’s AI partnerships with groups like SpaceX and Anthropic justify looking past that near term pressure.

Alphabet’s increasing AI spending is supported by a substantial advertising business and expanding cloud revenue, yet the full picture can be easy to misinterpret. Get the context behind the current valuation and AI deals in the analysis report for Alphabet

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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.