Space stocks fall as SpaceX's ambitious IPO draws near

By William Gavin

Whether the blockbuster IPO is good news or bad news for much smaller space stocks remains to be seen

SpaceX is the space industry leader and dominates the launch market with its Falcon 9 rockets.

Space-sector stocks are trading lower on Friday as the market prepares for industry leader SpaceX to officially file for its initial public offering - something that could happen as soon as next week.

CNBC reported Thursday about the expected timeline for the aerospace company's prospectus, which would set SpaceX up for a public listing in June. SpaceX did not immediately return MarketWatch's request for comment.

SpaceX is expected to seek to raise $75 billion for a $2 trillion valuation, which would make it by far the most valuable IPO to date. The current record holder is Saudi Aramco, which ultimately raised $29.4 billion in its 2019 IPO after exercising a "green shoe" option. That's roughly 39% of what SpaceX aims to raise.

What impact the IPO will have on the wider space sector has yet to be seen.

On one hand, SpaceX going public could help drive further attention to the space trade and boost activity, Roundhill Investments CEO Dave Mazza previously told MarketWatch. But SpaceX could also suck up attention and money that might have otherwise gone to smaller space stocks, he said.

See more: Space investing is heating up as SpaceX rockets toward a record-breaking IPO

Voyager Technologies (VOYG) CEO Dylan Taylor expects SpaceX's plans to be "super positive" for the industry and benefit "real" companies. The space sector's so-called "PowerPoint companies," or companies that don't have much going for them in terms of revenue or technology, won't have as much luck, he added.

"The point is, a lot more eyeballs will be on the industry. Which is a good thing," Taylor told MarketWatch this week. "And then I think, then, you'll have a sorting between companies that are real and companies that aren't."

Some space stocks fell in early trading on Friday on the news of SpaceX's plans, along with a wider tech-led selloff. Shares of Rocket Lab, which reported strong earnings last week, for example, fell more than 5% on Friday morning.

Intuitive Machines (LUNR), MDA Space (MDA), BlackSky Technology (BKSY) and Firefly Aerospace (FLY) shares also fell in Friday morning trading. Voyager's stock dropped 8% on Friday, paring gains from earlier in the week.

Shares of the Procure Space ETF UFO fell 3% on Friday, while the Tema Space Innovators ETF NASA showed a 4% loss.

See more: What to know about investing in SpaceX - or any company - before it goes public

-William Gavin

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05-15-26 1128ET