Rocket Lab and Intuitive Machines shares fell sharply as investors reallocated capital to SpaceX’s recent public debut and rising rates weighed on growth stocks.
Shares of Rocket Lab (RKLB) and Intuitive Machines (LUNR) dropped 24% and 41%, respectively, over the past month, driven by investor rotation into SpaceX’s blockbuster IPO. The sell-off, dubbed the “SpaceX Effect,” saw capital shift toward the newly listed giant, dragging the broader space sector lower.
Neither company’s fundamentals triggered the decline, though rising interest rates amplified pressure. Both firms are long-duration bets, with profits years away, making them vulnerable to higher borrowing costs. Rocket Lab, the more established of the two, generates revenue from launches and satellite systems, while Intuitive Machines remains earlier in its growth trajectory.
The pullback reflects sentiment and sector rotation rather than a deterioration in either business, leaving opportunistic investors weighing which stock offers better value post-decline.