Rocket Lab shares declined about 5% while legacy aerospace names gained 5–9% since SpaceX’s IPO, which saw its stock jump over 30% at a $75 billion valuation. SpaceX’s P/S ratio of 117 and lack of profitability have heightened scrutiny on smaller space companies’ valuations.
SpaceX’s debut saw shares jump more than 30%, establishing a market valuation near $75 billion and making it the largest IPO in history. This momentum has drawn investor attention away from smaller public space companies.
Since SpaceX’s IPO, established aerospace names such as GE Aerospace, Howmet Aerospace, Honeywell, Parker-Hannifin, Eaton and TransDigm have posted gains between 5% and 9%, while Boeing, RTX and Airbus also traded higher.
The segment of newer space companies has underdelivered, with Rocket Lab down roughly 5% and names like Viasat, EchoStar and Planet Labs falling between 10% and 16%, and Virgin Galactic over 20%.
Investors note SpaceX’s extreme P/S ratio of 117 and lack of profitability, increasing pressure on peers like Rocket Lab to justify their valuations through revenue growth and profitability milestones.
