SpaceX IPO Chatter Has Space Stocks Stuck on the Pad

Core Viewpoint - The space sector is experiencing significant resistance in 2026, with investors shifting focus towards SpaceX's anticipated IPO, potentially valuing the company at $1.5 trillion, leading to a sell-off in established public space stocks [1]. Group 1: Market Dynamics - Investors are adopting a "wait-and-see" approach, hoarding liquidity to invest in SpaceX rather than established players [1]. - The high expectations surrounding the SpaceX IPO are not benefiting all companies in the sector, highlighting a valuation gap among space stocks [2]. Group 2: Stock Performance - Over the past month, many public space companies have faced substantial double-digit declines as capital flows towards SpaceX, with AST SpaceMobile showing resilience due to specific milestones [3]. - Rocket Lab is working on the reusable Neutron rocket but remains at a disadvantage with its current expendable Electron model, while Virgin Galactic struggles with high burn rates and low flight frequency [4]. Group 3: Competitive Landscape - As SpaceX's IPO looms, other space stocks are increasingly viewed as high-risk investments, overshadowed by SpaceX's potential market dominance [4].