Updated 1 min read
What happened: Space-related stocks reversed course on Friday in early trading as investors awaited SpaceX (SPCX) shares to start trading.
What’s behind the move: The space sector has been volatile in recent weeks amid growing investor demand for SpaceX’s IPO, the largest public offering on record. The Elon Musk-led company offered 555.6 million shares at $135 each, raising $75 billion and valuing the company at approximately $1.77 trillion.
Redwire (RDW) stock declined, reversing its premarket gains. , Satellogic (SATL), and AST SpaceMobile (ASTS) also declined. EchoStar (SATS) dropped as well, along with Rocket Lab (RKLB).
The rally also boosted the Procure Space ETF (UFO), which tracks companies across the space economy, sending the fund below the flatline 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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