Space sector stock slump

In late May 2026, shares of several publicly‑traded space companies reached record highs, buoyed by strong earnings and large contracts such as Rocket Lab’s $266 million U.S. Space Force deal. By late July, those same stocks had fallen sharply—Rocket Lab lost about 58%, Planet Labs more than 60%, and AST SpaceMobile roughly 57%.

Analysts link the decline to a pullback after SpaceX’s post‑IPO performance, which dampened enthusiasm for smaller rivals and prompted a reassessment of valuations. Despite revenue growth and upcoming projects like Rocket Lab’s Neutron launch vehicle, investors remain cautious about the sector’s high capital needs. Institutional activity shows mixed moves, with some funds increasing positions while others trim holdings, reflecting ongoing debate over whether the sell‑off represents a buying opportunity or a necessary market correction.