Why Redwire Stock Is Falling On Monday?

Redwire Corp ( RDW ) stock is trading lower on Monday. The stock is continuing its downward momentum from Friday. Traders are taking profits after a sharp, news-driven rally. The equity is giving back gains from last week’s massive surge. The stock faced immediate selling pressure after hitting a resistance ceiling. Shares fell 2.79% to close at $13.60 on Friday afternoon, according to Benzinga Pro. Tech Giants Spark Initial Rally The initial rally started on Thursday. The Wall Street Journal reported that Alphabet Inc ( GOOG ) and SpaceX are discussing a rocket-launch arrangement. The partnership ties directly into orbital data centers. Space-based computing advocates believe solar-powered facilities can solve land and power issues. However, the stock is pulling back as the initial excitement cools down. Strong earnings numbers support the underlying business. Last week, Redwire ( RDW ) reported first-quarter revenue of $97 million. This represents a 57.9% increase year-over-year. The space firm also posted a record backlog of $498.1 million. Its book-to-bill ratio reached a strong 1.92. Deep Space Missions Drive Pipeline The company continues to expand its work with NASA. Redwire ( RDW ) announced that its optical imaging systems and sun-sensor technology will fly on the Artemis II Orion spacecraft. The company manufactures these systems under a contract with Lockheed Martin. The agreement covers Artemis missions I through V. Even with Monday's dip, RDW is still in a strong longer-term uptrend: it's trading 35.5% above its 20-day SMA ($10.41) and 56.9% above its 200-day SMA ($8.99), which is classic extended but trending behavior. The 20-day SMA is above the 50-day SMA (bullish), and the golden cross in April (50-day SMA above the 200-day SMA) reinforces that the bigger-picture trend has been pointing higher. Read Also: 'Big Short' Legend Eisman Is 'Nervous About The Sustainability' Of Nvidia's Melt-Up RDW Stock Price Activity: Redwire ( RDW ) shares were down 4.34% at $13.45 at the time of publication on Monday, according to Benzinga Pro data. Photo: T. Schneider / Shutterstock