Planet Labs Shares Drop Over 5% After Blue Origin Rocket Explosion
PL•Planet Labs shares fell more than 5% on May 28 after Blue Origin's New Glenn rocket exploded during a hot-fire test, triggering a sector-wide selloff. The setback came days before SpaceX's planned IPO, dampening investor enthusiasm for space-exposed equities like Planet Labs.
1. Blue Origin New Glenn Explosion
On May 28, Blue Origin’s New Glenn rocket exploded during a hot-fire test at Launch Complex 36, causing extensive pad damage and debris warnings along Florida’s Space Coast. This marked the second major New Glenn setback in six weeks, halting the company's only operational heavy-lift vehicle pending investigation.
2. Broad Selloff in Space Stocks
The blast triggered a sharp selloff across space-related equities, with Planet Labs falling over 5%, AST SpaceMobile sliding 18% and Rocket Lab down 6%. Investors retracted bids for growth in the sector as uncertainty spiked ahead of upcoming launch programs.
3. SpaceX IPO Pressure
The disruption arrived days before SpaceX’s planned roadshow for what could become the largest IPO ever, with a valuation target between $1.8 trillion and $2 trillion. Market participants cited increased risk perception as weighing on confidence for space-exposed companies.
