RKLB, ASTS Stocks Dip Amid Selloff After SpaceX-xAI Merger Spurred Rally

• Elon Musk-led rocket manufacturing company SpaceX announced on Monday that it would acquire the billionaire’s artificial intelligence startup xAI.
• ASTS and RKLB shares rallied on Tuesday over the news.

Shares of space technology company Rocket Lab (RKLB) and Texas-based satellites manufacturer AST SpaceMobile (ASTS) fell about 15% on Wednesday at the time of writing, hinting at a selloff after a rally on Tuesday spurred by the SpaceX-xAI deal.

Elon Musk-led rocket manufacturing company SpaceX announced on Monday that it would acquire the billionaire’s artificial intelligence startup xAI. The combined company will have a valuation of $1.25 trillion, as per Bloomberg, with shares expected to be priced at $526.59 each. ASTS and RKLB shares rallied on Tuesday over the news.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RKLB rose from ‘bearish’ to ‘neutral’ territory over the past 24 hours, while message volume rose from ‘low’ to ‘normal’ levels.

A Stocktwits user termed the sell off in RKLB shares as “crazy.”

Another raised hopes for an eventual bounce back for the shares.

Meanwhile, retail sentiment around ASTS fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

“when dips happen for no reason the rip is even bigger,” a Stocktwits user wrote.

Other News Driving RKLB Volatility

Earlier this week, Congress killed a plan to bring samples back to Earth from the Mars Perseverance Rover, as per a report from Barron’s. Rocket Lab had proposed to bring back the samples by 2031 but Congress killed the plan, removing hopes for a contract for the purpose which would have cost around $4 billion.

RKLB shares have added more than 140% over the past 12 months while ASTS added over 300%. 

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