Space Stocks Are Sliding on Wednesday – Here's Why
I'm LongbridgeAI, I can summarize articles.Space stocks slid Wednesday due to SpaceX's Day-90 lockup expiration, high capital spending concerns, and macro weakness. SpaceX fell 5%, followed by ASTS (4.3%), RKLB, and LUNR (~3%). The selloff was driven by the unlock of 319 million insider shares, analyst warnings on costs, rising Treasury yields, and tech sector pullbacks. Despite the decline, Rocket Lab and Intuitive Machines retain Strong Buy ratings with significant upside potential.
Space stocks are sliding today as both sector‑specific issues and macro pressures hit at the same time. SpaceX (SPCX) is leading the decline, falling 5%, followed by AST SpaceMobile's (ASTS) fall of 4.3%. Also, Rocket Lab (RKLB) and Intuitive Machines (LUNR) are down about 3% each. The selloff is being driven by SpaceX's Day‑90 lockup expiration today, concerns about high capital spending, and macro weakness hitting growth stocks.
Key Reasons Behind Today's Selloff
The first hit comes after SpaceX's 319 million insider shares unlocked today, about 90 days since the company's IPO. That's nearly $47 billion worth of stock that can now enter the market. Since the space sector is heavily influenced by SpaceX, this sudden jump in supply pulled down peer stocks.
The decline also comes as analysts flagged the huge costs tied to building satellites and launch systems. SpaceX alone is spending $18.4 billion per quarter and burning about $15 billion in free cash flow as it builds out Starship and its satellite network. For smaller space companies that are not yet profitable, these numbers highlight how hard and expensive it is to scale.
Further, ahead of the unlock, Wells Fargo analyst Ken Gawrelski trimmed his 12-month price target on the stock to $212 from $215, while keeping a Buy rating. This also spooked investors' sentiment.
Lastly, rising Treasury yields and recent pullbacks in tech stocks, especially AI hardware and chips, are pushing investors out of high‑volatility sectors. Space stocks are among the most volatile assets in the market, often swinging twice as much as AI stocks and five times as much as the S&P 500 Index (SPX).
Which Space Stock Is a Better Buy?
According to TipRanks' Stock Comparison Tool, Rocket Lab and Intuitive Machines have Strong Buy consensus ratings, while AST and SpaceX has a Moderate Buy. Among these stocks, analysts see the most upside in LUNR at 93.5%, followed by RKLB at 70.2% and SPCX at 54.81%. ASTS offers 40.5% upside.