This week, several space companies saw their stock prices jump by 20% or more, thanks in part to what’s being called a “Trump-Elon trade.” This term refers to the connection between President-elect Donald Trump and SpaceX CEO Elon Musk, which some analysts believe is boosting the space industry.
Some of the big winners this week include Rocket Lab, which soared by 41%, Intuitive Machines, up 28%, Spire Global, rising 26%, Planet Labs, up 16%, Redwire, gaining 15%, and AST SpaceMobile, which increased by 10%. These gains were partly due to strong third-quarter results and exciting updates from companies like Rocket Lab’s progress on its Neutron rocket and Spire selling off part of its business to reduce debt.
But it’s not just the numbers that are fueling this rally. Analysts like Andres Sheppard from Cantor Fitzgerald say there’s a broader optimism in the market. He points out that after Trump’s win, investors seem more eager to get involved in space stocks, with the industry looking like it’s on the rise due to factors like national security, NASA’s Artemis program, and Musk’s goals for SpaceX.
Because SpaceX is privately held, investors are looking at other space companies to get in on the action. And as Musk’s success with space missions continues, other companies in the sector are benefiting from lower launch costs. Andrew Chanin, CEO of ProcureAM, which runs a space-focused ETF, says that this cost reduction helps companies by making it more affordable to send spacecraft into orbit.
Interestingly, there’s a divide happening in the space stock world. Newer space companies are thriving, while older, well-known companies like EchoStar and Viasat are seeing their stock prices drop. Analysts suggest this is a sign that the space industry is shifting, with newer companies leading the way, just like in tech, where cheaper options usually win out.
Despite the impressive gains this year, Sheppard believes the space sector isn’t slowing down anytime soon. The overall mood is still positive, and with strong government support and SpaceX’s continued success, space companies like Rocket Lab are likely to keep benefiting.
In fact, Rocket Lab’s CEO Peter Beck is confident that the new focus on space from the Trump administration will keep the industry moving forward. He put it simply: “When space wins, Rocket Lab wins.”
