Shares of AST SpaceMobile (NASDAQ: ASTS), Rocket Lab USA (NASDAQ: RKLB), Redwire (NYSE: RDW), and Intuitive Machines (NASDAQ: LUNR) slipped in overnight trading as SpaceX IPO optimism cooled following a report of a lower valuation target.
Bloomberg reported that SpaceX is targeting a valuation of at least $1.8 trillion, down from earlier expectations that the company could seek a valuation exceeding $2 trillion.
ASTS led the sector lower, falling 11% in overnight trading, while RDW dropped 4% and both RKLB and LUNR each lost approximately 2%.
SpaceX is still expected to raise as much as $75 billion, in what is potentially the largest initial public offering in Wall Street history.
The company is reportedly preparing to begin formal marketing as early as June 4, with pricing potentially arriving as soon as June 11.
SpaceX’s IPO filing outlined ambitions spanning reusable rockets, satellite broadband, direct-to-device mobile communications, AI infrastructure, enterprise software, orbital data centers, and long-term Mars colonization efforts.
The company said it had identified the “largest actionable total addressable market” in history, estimating the opportunity at $28.5 trillion, including a $1.6 trillion connectivity opportunity from Starlink and a $26.5 trillion AI market opportunity.
The filing had initially ignited a broad rally across publicly traded space stocks, with AST SpaceMobile drawing particular attention after SpaceX explicitly named the company as a competitor in direct-to-device satellite communications.
Rocket Lab recently secured an additional $816 million contract for the Space Development Agency’s missile-tracking satellite constellation, bringing the total value of that program to over $1.3 billion.
Redwire secured a $15 million follow-on order from the U.S. Army for its Stalker drone systems and a separate eight-figure contract from a NATO ally for its Penguin Mk3 uncrewed aircraft platform, while also reporting a record backlog of $498.1 million.
Intuitive Machines ended the first quarter with a record $1.1 billion backlog, supported by lunar infrastructure and national-security programs, after securing additional NASA lunar reconnaissance work.
AST SpaceMobile faces additional pressure following a Blue Origin anomaly that resulted in a massive explosion during a hotfire test at Cape Canaveral, ahead of the rocket’s anticipated fourth mission.
The incident came weeks after New Glenn’s third mission suffered an upper-stage failure that prevented AST’s BlueBird 7 satellite from reaching its intended orbit, resulting in the loss of the spacecraft, though AST said the mission was insured.
AST has stressed it is not dependent on a single launch provider and confirmed that BlueBirds 8, 9, and 10 have arrived at Cape Canaveral ahead of a Falcon 9 launch expected in mid-June.
On Stocktwits, retail sentiment for ASTS, LUNR, and RDW was rated “extremely bullish” with message activity ranging from “high” to “extremely high,” while RKLB was the lone exception, marked “bearish” amid “normal” message volume.
Over the past year, ASTS has soared 437%, RKLB has jumped 412%, LUNR has gained 273%, and RDW has risen 67%.
