What happened: Space-related stocks continued their plunge as SpaceX (SPCX) made its public market debut on Friday.
What’s behind the move: The space sector declined after SpaceX’s stock opened at $150, following a $135 price in the largest public offering on record. The Elon Musk-led company raised $75 billion.
Shares of Redwire (RDW) , Satellogic (SATL), and AST SpaceMobile (ASTS) all declined at least 8%. EchoStar (SATS) and Rocket Lab (RKLB) also fell 15% and 6%, respectively.
Procure Space ETF (UFO), which tracks companies across the space economy, declined after jumping 8% in the prior session.
Virgin Galactic (SPCE) also tracked lower after jumping 23% a day earlier. Shares of the space travel company have been volatile amid short sellers piling into the stock.
What else you need to know: SpaceX’s public debut has put renewed focus on the space industry.
Wall Street sees growing opportunities in satellite connectivity and in deploying AI data centers in orbit, using solar power to run equipment while reducing the need for cooling technologies linked to terrestrial facilities.
On Thursday, Oppenheimer analysts initiated coverage of SpaceX with an Outperform rating and a $190 price target.
The price target implies around 40% upside from the $135 IPO price and values the firm at $2.5 trillion.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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