Virgin Galactic, Rocket Lab, and AST SpaceMobile shares tumble as traders shift funds to SpaceX’s market debut.
Shares of Virgin Galactic (SPCE) fell 24% in early trading Friday, while Rocket Lab (RKLB) and AST SpaceMobile (ASTS) dropped 8% and 10%, respectively. The declines coincide with SpaceX’s long-awaited trading debut, drawing capital away from publicly listed space stocks.
Virgin Galactic entered the session up 79% year-to-date at $5.73, and Rocket Lab held a 65% gain. Rocket Lab also reported record Q1 revenue of $200 million and a $2.2 billion backlog, far outpacing Virgin Galactic’s $227,000 quarterly revenue. AST SpaceMobile shares rose 21% in 2024 prior to the selloff.
The sharp reversal suggests investors are reallocating funds to SpaceX, the sector’s largest private player, rather than maintaining positions in smaller public peers.