Redwire Corp.'s stock plummeted 10.81% intraday on Friday, as the space infrastructure provider was caught in a broad sector sell-off.

The decline was triggered by two major negative developments for the space industry. First, a Blue Origin New Glenn rocket dramatically exploded during a test flight in Florida late Thursday, casting uncertainty over the launch schedules of companies reliant on its services. Concurrently, reports emerged that SpaceX is targeting a valuation of $1.8 trillion for its upcoming IPO, down from prior market expectations of up to $2 trillion, tempering the recent euphoria that had lifted space stocks.

These dual catalysts prompted a wave of selling across the space sector, with Redwire and peers experiencing significant pressure. The stock's drop also reflects some profit-taking following a sharp rally earlier in the week, which was fueled by optimism around the SpaceX IPO filing and Redwire's own military contract wins.