Space stocks including Rocket Lab (RKLB), SpaceX (SPCX), and AST SpaceMobile (ASTS) are experiencing July losses exceeding 30%, with Goldman Sachs reporting the sector's volatility is five times higher than the S&P 500. RKLB stock has fallen about 34% this month heading for its worst month since November 2025, ASTS is down 38% marking its weakest month since January 2024, while SPCX has shed about 35% over the past month. The selloff follows a blockbuster rally that saw Goldman's space basket surge over 360% in two years. Louis Miller, Goldman's global head of Equity Custom Basket, said the sector has evolved beyond purely speculative trading as investor interest grows in rocket launches, satellites, and global communications, though he cautioned that enthusiasm will likely move ahead of fundamentals at times making the path uneven.
Goldman Reports Space Stocks Five Times More Volatile Than S&P 500
Goldman Sachs said its basket of U.S. space and satellite stocks is about five times as volatile as the S&P 500 and twice as volatile as a comparable AI basket. SpaceX was added to the basket on July 14 after its public-market debut helped fuel another burst of enthusiasm across launch, satellite and orbital-connectivity stocks.
Space Basket Up 13% Year-to-Date Through July 14 Despite July Losses
The group was up about 13% this year through July 14, ahead of the S&P 500's 9.8% gain, after surging more than 360% over the previous two years. Miller said the sector has benefited from growing interest in rocket launches, satellites, global communications, and the potential for future markets that are enabled by them.
Goldman Identifies Communications Infrastructure and Semiconductors as Expansion Opportunities
Goldman said investors focused solely on launch providers may be missing a significant portion of the opportunity set. Miller pointed to communications infrastructure, semiconductors, electronics, software, advanced materials and manufacturing as areas of interest. He compared the sector's development with the AI trade, where investor attention expanded from model developers to chips, power and data-center infrastructure. Miller said the strongest long-term opportunity could come from identifying the picks-and-shovels providers that enable commercialization.
Analyst Estimates Point to Broader Space Basket Profitability in 2027
Goldman said some companies in its space basket could become profitable next year, while analyst estimates point to the broader group reaching profitability in 2027. Falling launch and satellite costs, rising demand for orbital broadband and growing defense-related revenue could drive profits. Miller added that demand has come from all types of investors across retail, private wealth management, and institutional investors, with most conversations showing long-term investment horizons for this theme.
Stocktwits Poll Shows 27% Retail Interest in Space Versus 44% in Memory
Retail traders appear cautious about stepping into the selloff. In a Stocktwits poll drawing 10,400 votes, space attracted just 27% of users looking to add exposure to beaten-down sectors. Memory led with 44%, followed by neoclouds at 29%. Sentiment on Stocktwits was mixed across space stocks: ASTS was 'neutral' amid 'high' message volume, RKLB was 'bullish' with 'high' activity, while SPCX remained 'bearish' amid 'low' message volume. Over the past year, ASTS has gained 5%, while RKLB has climbed 41%.
FAQ
Why did space stocks drop over 30% in July?
Rocket Lab (RKLB), SpaceX (SPCX), and AST SpaceMobile (ASTS) all experienced July losses exceeding 30% as the sector's blockbuster rally lost altitude. RKLB fell about 34% heading for its worst month since November 2025, ASTS dropped 38% marking its weakest month since January 2024, and SPCX shed about 35% over the past month.
How volatile are space stocks compared to the S&P 500?
Goldman Sachs reported that its basket of U.S. space and satellite stocks is about five times as volatile as the S&P 500 and twice as volatile as a comparable AI basket. Despite this volatility, the group was up about 13% this year through July 14, ahead of the S&P 500's 9.8% gain.
What is retail investor interest in space stocks according to the Stocktwits poll?
In a Stocktwits poll drawing 10,400 votes, space attracted just 27% of users looking to add exposure to beaten-down sectors. Memory led with 44%, followed by neoclouds at 29%, indicating retail traders remain cautious about stepping into the space stock selloff.
