Top space stocks have experienced significant growth this year, driven by strong revenue increases and, most notably, the anticipated SpaceX IPO, which is expected to result in a market capitalization exceeding $2 trillion.
Top Space Stocks Like RKLB, LUNR, SPCE, and Planet Labs Have Soared
The Procure Space ETF (UFO) has jumped by over 146% in the last 12 months and 60% this year. This surge has brought its total assets to over $1.38 billion.
Similarly, the Tema Space Innovators (NASA) ETF has more than doubled since its launch in April. It now holds over $2.6 billion in assets under management (AUM).
Rocket Lab (RKLB) stock has jumped by 382% in the last 12 months, with its market cap hitting $83 billion. Intuitive Machines (LUNR) jumped by 281%, while Virgin Galactic (SPCE) and Planet Labs (PL) have soared by 148% and 1,135% in this period.
These stocks have jumped as investors anticipate the SpaceX IPO, which will value Elon Musk’s company at over $1.7 trillion. Most traders on Polymarket believe that the company’s valuation will jump to over $2 trillion.
This anticipation has led to a strong surge across the industry. Rocket Lab is a close competitor that launches satellites for governments and companies.
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Planet Labs is also a major space company that provides satellite images, while Intuitive Machines provides space infrastructure, services, and robotic systems. Virgin Galactic is working on spacecraft that are geared towards the tourism sector.
It is common for companies in trending sectors to do well and move in sync over time. For example, most AI cryptocurrencies and stocks have jumped ahead of the upcoming OpenAI and Anthropic IPOs, which will value them at over $2 trillion combined.
Potential Risks for SpaceX Stocks
Still, there is a risk that these stock companies will plunge in the near term. For one, there is a situation known as buying the rumor, selling the news. This is a situation where investors buy assets ahead of major events and then sell when it happens. A good example of this is when the Pi Network price jumped in March and then crashed after the Kraken listing.
The other key reasons why the stocks may crash in the coming weeks are that these stocks have become highly overvalued. For example, Planet Labs stock trades at a forward price-to-sales ratio of 51, while Rocket Lab has a multiple of 91.
Technicals also suggest that the stocks have become both overvalued and overbought. That is a sign that they may be on the cusp of a bearish breakout in the near future, a move that may worsen amid panic selling among investors.
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