Karman Holdings' stock plummeted 7.58% during intraday trading on Monday, continuing a downward trend for the aerospace company.

The sharp decline follows the catastrophic explosion of Blue Origin's New Glenn heavy-lift rocket during a static fire test on May 28, which completely destroyed the first-stage booster and the company's only operational launch pad. The incident has triggered broad-based selling across the commercial space sector as investors are reminded of the inherent risks inherent in space ventures.

Analysts note that launch pad repairs are estimated to take at least six months, with the rocket unlikely to fly again until next spring. The explosion has created sector-wide weakness, with other aerospace companies including Rocket Lab USA, Redwire Corp., Boeing, and GE Aerospace also experiencing significant declines in the aftermath of the incident.