MW SpaceX rivals AST SpaceMobile and Rocket Lab join space-stock selloff

By William Gavin

Losses could be tied in part to this week's software rout, according to one analyst

AST SpaceMobile plans to compete with Elon Musk's SpaceX, GlobalStar and others to provide satellite-based internet services.

Space stocks are having a rough week, with SpaceX rivals AST SpaceMobile and Rocket Lab taking some of the biggest hits.

The share price for AST SpaceMobile (ASTS), which is building a satellite cellular broadband network, fell more than 10% on Wednesday as AT&T $(T)$ linked up with Amazon Web Services and Amazon Leo, the company's (AMZN) satellite-internet business formerly known as Kuiper.

The deal appears focused on connecting AWS data centers with AT&T's fiber and Amazon Leo's nascent satellite constellation supporting AT&T's commercial customers. Although that likely won't impact AST SpaceMobile's plan to provide AT&T customers with satellite-based connectivity, it was enough to spook some investors.

Amazon Leo has discussed direct-to-device services but has focused its early rollout on commercial customers. AST SpaceMobile's other rivals are SpaceX's Starlink, Iridium Communications $(IRDM)$ and Globalstar $(GSAT)$, which is backed by Apple $(AAPL)$.

Rocket Lab (RKLB) shares also traded lower on Wednesday, falling to as low as $68.56 per share before losses were slightly pared back. Rocket Lab, which makes rockets, has seen its stock drop more than 17% over a rocky five-day period.

The company's shares fell on Monday as investors appeared to react to Congress killing Rocket Lab's $4 billion plan to bring samples back to Earth from the Mars Perseverance Rover by 2031. A day later, Rocket Lab's stock rose, partially in response to SpaceX's acquisition of CEO Elon Musk's artificial-intelligence startup, xAI.

Read: Why Rocket Lab's stock could cool off after a blistering 263% rally in the past year

SpaceX plans to go public later this year and is reportedly aiming to raise $50 billion at a $1.5 trillion valuation. KeyBanc's Michael Leshock noted last month that its public listing could drive a re-rating opportunity for Rocket Lab and other space stocks. And the xAI and SpaceX merger is already helping drive enthusiasm within the industry.

"The fact that SpaceX - a company valued many times higher than xAI - is the acquirer here is symbolic of where the next multi-trillion-dollar technology opportunity lies," James Bruegger, chief investment officer at venture-capital firm Seraphim Space Capital, said in a statement.

NASA on Tuesday also said that it would delay the Artemis II mission from later this month to no earlier than March. The lunar mission and its successors are expected to drive interest in space companies, including Intuitive Machines (LUNR) and Rocket Lab, according to Cantor Fitzgerald analyst Andres Sheppard.

In addition to Rocket Lab and AST SpaceMobile, several other sector stocks showed losses on Wednesday, including Planet Labs $(PL)$, newly public York Space Systems $(YSS)$ , Firefly Aerospace $(FLY)$ and Intuitive Machines.

"This isn't anything too out of the blue," said Andrew Chanin, CEO of ProcureAM, which runs the Procure Space exchange-traded fund UFO. "There are days where you'll see numerous companies up or down 10%."

Some of the losses are likely a "spillover" from the software rout that has dragged down the S&P 500, Chanin added.

Also read: Elon Musk's plans for SpaceX data centers in orbit could cost $5 trillion a year, analysts say

-William Gavin

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February 04, 2026 16:42 ET (21:42 GMT)

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