Why Nebius and Rocket Lab Shares Cratered
I'm LongbridgeAI, I can summarize articles.Nebius (NBIS) and Rocket Lab (RKLB) shares plummeted due to sector-specific pressures. Nebius entered a bear phase as investors anticipated excess AI server supply from Meta, despite its high valuation. Meanwhile, the satellite sector faced heavy selling; Rocket Lab dropped significantly from its May peak, AST SpaceMobile fell 17% after a debt offering, and Planet Labs declined nearly 19%. Additionally, SpaceX's stock slumped post-IPO amid short-selling pressure and upcoming insider selling restrictions.
The small dips in the Nasdaq (QQQ) and S&P 500 (IVV) are not revealing the stocks that are cratering. Mega-capitalization firms like Apple (AAPL), Meta Platforms (META), and Apple (AAPL) are hiding the panic selling in hyperscalers.
Nebius Group (NBIS) topped $299.86 last month but entered a bear phase. It closed at $171.77, trading at a 57x P/E. All it takes is Meta to rent its unused AI servers to create excess supply. Even though Meta’s servers are not as advanced as those of Nebius, investors dumped NBIS stock.
The satellite sector is not faring better, either. Rocket Lab (RKLB) sold off heavily from its peak in mid-May. Lifted by SpaceX’s (SPCX) euphoric IPO, RKLB peaked at $151 and closed at $67.35. On Wednesday night, AST SpaceMobile (ASTS) announced a convertible debt offering.
ASTS stock cratered by 17% to close at $55.01 on Thursday.
Planet Labs (PL), which supplies observatory solutions with imaging satellites, fell by 18.8% in the last week. Shares fell almost daily since a short-lived rally up until July 1.
SpaceX’s post-IPO slump bewildered speculators. Short-sellers piled on the stock, holding a 17.23% short float. Shares lost 13.83% and closed at $131.11. Investors who bought the stock at the $135 IPO price have a loss. Those who bought the stock at the open at $150 lost even more.
SpaceX will report quarterly results in a few weeks. After that, insiders are free to sell some of their shares.