By Al Root
Space stocks were weak again in early trading on Thursday, with many down substantially over the past week.
Investors look to be taking profits ahead of the SpaceX IPO.
Shares of Rocket Lab, AST SpaceMobile, Virgin Galactic, and Intuitive Machines were down between 1% and 4% in premarket trading, while S&P 500 futures were down 0.4%.
Those four dropped an average of 9% on Wednesday. The drop appeared to be catalyzed by the revelation that SpaceX would price its IPO at $135 per share, valuing Elon Musk's rocket company at about $1.75 trillion.
SpaceX essentially created the modern space economy by pioneering reusable rockets, which dramatically reduced the cost of reaching space, opening up the potential for applications ranging from Earth imaging to broadband internet access.
While $1.75 trillion is a massive number, it qualifies as a bit of a disappointment. Buzz had investors thinking $2 trillion was possible.
Space stocks had an incredible run-up in anticipation of the SpaceX IPO. Coming into Thursday trading, Rocket Lab, AST SpaceMobile, Virgin Galactic, Redwire, and Intuitive Machines were still up an average of 64% over the past month.
Some of that wind has left the sails, though. Through Wednesday trading, Rocket Lab stock was down 24% over the past week. AST stock was off 17%.
Several companies, including Intuitive, have used rising prices to raise capital. Selling stock at high prices typically catches investors' attention. The explosion of Blue Origin's New Glenn rocket also shook confidence.
It's hard to say where space stocks will go next. The space economy is exciting and growing, but Rocket Lab, AST SpaceMobile, Virgin Galactic, Redwire, and Intuitive Machines aren't profitable yet.
Write to Al Root at allen.root@dowjones.com
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June 04, 2026 08:50 ET (12:50 GMT)
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