ASTS, RKLB, RDW, LUNR Slip Overnight: SpaceX IPO Hype Loses Orbit After Valuation Target Reportedly Falls Below $2 Trillion

• SpaceX is reportedly targeting an IPO valuation of at least $1.8 trillion, below earlier expectations of more than $2 trillion.
• The space giant is still seeking to raise up to $75 billion in what is potentially the largest IPO in Wall Street history.
• RKLB, RDW, and LUNR have recently benefited from major government and defense contracts.

Shares of Rocket Lab USA (RKLB), Redwire (RDW), Intuitive Machines (LUNR), and AST SpaceMobile (ASTS) slipped in overnight trading heading into Friday as investors dialed back some of the optimism sparked by SpaceX's IPO filing after a report pointed to a lower-than-expected valuation target.

ASTS stock led the sector lower, down 11% in overnight trading, while RDW fell 4%, and both RKLB and LUNR lost about 2%. 

SpaceX IPO Hype Cools

Last week, SpaceX's long-awaited IPO filing ignited a rally in space stocks, giving investors a chance to look at Elon Musk's vision for the company and the broader space economy. However, Bloomberg reported on Thursday that SpaceX is targeting a valuation of at least $1.8 trillion, down from earlier reports suggesting the company could seek a valuation exceeding $2 trillion.

The company is still expected to raise as much as $75 billion in what is potentially the largest initial public offering in Wall Street history. SpaceX is reportedly preparing to begin formal marketing as early as June 4, with pricing potentially arriving as soon as June 11. 

In the IPO filing, SpaceX 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. That figure included a $1.6 trillion connectivity opportunity from Starlink broadband and mobile services, alongside a $26.5 trillion AI market opportunity spanning infrastructure, subscriptions, advertising and enterprise applications.

Why Space Stocks Were Rallying

The filing reignited enthusiasm across nearly every corner of the publicly traded space sector. AST SpaceMobile drew particular attention after SpaceX explicitly identified the company as a competitor in direct-to-device satellite communications. Investors viewed the mention as further validation of the rapidly growing satellite-to-cellular market, where AST has been expanding through carrier partnerships and satellite deployments.

Meanwhile, Rocket Lab remained one of the sector's most closely-watched stocks as the company continued expanding beyond launch services into defense, satellite infrastructure and spacecraft manufacturing. The company recently secured an additional $816 million contract for the Space Development Agency's missile-tracking satellite constellation, bringing the total value of the program to over $1.3 billion. 

Redwire has been benefiting from growing defense and aerospace demand. Earlier this month, the company secured a $15 million follow-on order from the U.S. Army for its Stalker drone systems and announced a separate eight-figure contract from a NATO ally for its Penguin Mk3 uncrewed aircraft platform. The company also recently highlighted a record backlog of $498.1 million and pointed to an $1.8 billion spacecraft contract vehicle among its recent wins.

Meanwhile, Intuitive Machines has gained momentum after securing additional NASA lunar reconnaissance work and ending the first quarter with a record $1.1 billion backlog supported by lunar infrastructure and national-security programs.

ASTS Faces Additional Pressure

Among the group, AST SpaceMobile faces additional pressure from an anomaly at Blue Origin, resulting in a massive explosion during a hotfire test at Cape Canaveral, while preparations were underway for the rocket's anticipated fourth mission.

The incident came only weeks after New Glenn's third mission suffered an upper-stage failure that prevented AST SpaceMobile's BlueBird 7 satellite from reaching its intended orbit, resulting in the loss of the spacecraft. Although AST said the mission was insured, the setback renewed investor focus on launch execution risk.

AST has earlier stressed that it is not dependent on a single launch provider and maintains relationships with multiple launch companies, including SpaceX. The company recently confirmed that BlueBirds 8, 9 and 10 have arrived at Cape Canaveral ahead of a Falcon 9 launch expected in mid-June.

How Do Retail Traders Feel About RKLB, RDW, LUNR, ASTS?

Stocktwits users remained positive on ASTS, LUNR and RDW, with retail sentiment rated 'extremely bullish' and message activity ranging from 'high' to 'extremely high'. RKLB stood out as the lone exception, with sentiment 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% 

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