Space Exploration Technologies Corp. (NASDAQ:SPCX) may have pulled off the largest IPO in history, but one ETF executive says investors should not mistake excitement for fundamentals.

“The reality is this name is likely sentiment-driven in the near-term,” Direxion CEO Douglas Yones told Benzinga. “The economics of the company alone could not warrant the lofty valuation.”

Hype Vs. Fundamentals

SpaceX entered public markets with a valuation that has captivated investors for years. But Yones says the enthusiasm surrounding the company extends beyond what conventional financial analysis might justify today.

Instead, he pointed to a combination of factors fueling investor demand, including SpaceX’s status as the largest IPO ever, its leadership under Elon Musk and its potential ...