SpaceX IPO triggers sharp sell‑off in other spaceflight stocks

On June 12, SpaceX completed its initial public offering, raising more than $75 billion and reaching a valuation of about $1.78 trillion. The debut lifted SpaceX shares roughly 19 percent, while investors shifted capital away from other publicly traded spaceflight companies. Virgin Galactic’s stock fell over 50 percent to $4.30, Rocket Lab dropped about 30 percent to $105, Redwire slipped to $15 and Intuitive Machines declined 41 percent to $27. Related exchange‑traded funds also lost millions of dollars in value.

Analysts attribute the decline to profit‑taking and a liquidity effect rather than a sector‑wide crisis. They note that many of the smaller firms are over‑valued, with high price‑to‑sales multiples, and that the market is reassessing these valuations. The broader space‑industry supply chain, including AI and semiconductor components, is also highlighted as a factor influencing investor sentiment. Rocket Lab’s later inclusion in the Nasdaq‑100 is expected to provide a demand boost for its shares, but the overall sell‑off reflects the typical “buy the rumor, sell the news” pattern surrounding a major IPO.