U.S. Space Stocks Plunge Collectively in June, Multiple Names Down Over 50%; UFO Posts Worst Month in Six Years
0xBroomberg
After SpaceX's Nasdaq debut, the space sector sold off hard: at least four stocks fell over 50% in June, and the UFO ETF is on track for its worst month in six years — a swift shift from FOMO to valuation reckoning.
How bad is the damage?
Per FactSet, Virgin Galactic, Redwire, Intuitive Machines, and Momentus each dropped more than 50% in June.
Planet Labs and Firefly Aerospace fell over 40%; even Rocket Lab, which had positive catalysts, is down 44% for the month.
This means → the selloff is sector-wide, not company-specific.
Wasn't SpaceX's listing supposed to be bullish?
SpaceX listed on Nasdaq on June 12. By Thursday it traded around $153 — barely above its debut price — and slipped another ~1% on the day.
In plain terms = the market bet that SpaceX's IPO would lift the whole sector. SpaceX itself couldn't hold its gains, and the enthusiasm evaporated.
This reflects a rapid pivot from "pre-IPO fear of missing out" to "the reality of owning a volatile space stock."
How are space ETFs holding up?
The worst hit is Tuttle Capital SPCI, down 47% for the month; at least five other space ETFs fell more than 30%.
Procure Space ETF (UFO) is down roughly 30%, on pace to surpass its 28.8% drop during the March 2020 Covid crash — potentially its largest monthly loss ever.
This means → it's not just retail exiting; institutional capital allocated through ETFs is pulling out too.
What are analysts saying — is this the bottom?
CFRA analyst Keith Snyder says SpaceX's listing put a spotlight on lofty valuations across the sector. Investors are "coming to terms" with the reality that the industry's takeoff "may take much longer than expected."
He is bullish on Rocket Lab but notes it once traded at roughly 100× price-to-sales — a "crazy" multiple that partly explains his sell rating on SpaceX.
KeyBanc analyst Michael Leshock went the other way, upgrading Rocket Lab and Firefly to overweight, citing expanding NASA commercial partnerships and growing national-security demand.
What risks lie ahead?
In the near term, SpaceX insider lock-up periods are expiring in waves, unlocking large blocks of shares for sale.
In plain terms = if insiders sell in size, it adds another layer of pressure on SpaceX — and by extension, the entire sector.
This means → whether valuations can stabilize through this lock-up expiry wave is the key signal for judging if the sector has bottomed.
Content is for reference only, not financial advice.