Applied Aerospace & Defense got a slew of buy ratings from analysts who just figured out that rocket companies need parts. Revolutionary stuff. Took them this long to initiate coverage on a SpaceX supplier. What were they covering before, companies that don't sell anything to anyone?
The analysts slapped outperform ratings on this thing like they cracked some secret code. SpaceX launches rockets. Rockets need components. Company supplies components. Buy the stock. This is the level of insight your broker charges 1.5% annually to access.
Every retail trader who reads "SpaceX supplier" just creamed their Robinhood account. Doesn't matter what Applied Aerospace & Defense actually makes. Doesn't matter if they supply the rockets or the napkins in the break room. SpaceX is in the headline. That's enough. They'll buy it at any price, hold it through earnings, then wonder why correlation isn't causation when Elon tweets about Mars and their shares drop 30%.
Wall Street sees more gains ahead. Translation: we initiated coverage, we need you to buy this so our price target doesn't immediately look like bullshit. The game is simple. Analyst says buy. Stock goes up because analyst said buy. Analyst points to stock going up as proof analyst was right to say buy. Retail trader is the only one confused about how this works.
Applied Aerospace & Defense. The name alone sounds like a defense contractor asked ChatGPT to generate something generic. Could be making turbine blades. Could be making the little plastic clips that hold wires together. Doesn't matter. Wall Street sees gains ahead, which means they've already positioned themselves and need your dumb money to push it higher.
SpaceX supplier gets buy ratings the same week SpaceX probably signed contracts with six other suppliers who won't get coverage until next quarter when analysts need fresh pump material.
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