SpaceX IPO excitement is reaching a fever pitch, driving space stock prices up sharply this morning -- in the case of Rocket Lab (Nasdaq: RKLB), even absent other news.
Rocket Lab stock, the tiny rocket launcher that's been described as a mini-SpaceX (or even a chance to buy a SpaceX lookalike back when it was still small), jumped nearly 11% out of the gate this morning before reversing and giving back nearly all its gains. As of 10:05 a.m. ET Rocket Lab is up 3%.
Image source: Getty Images.
SpaceX sets an IPO date
Why so much volatility on a no-news day for Rocket Lab? I've got some thoughts on that.
Begin with the IPO news: Over the weekend, Reuters reported that SpaceX has moved up its IPO date. SpaceX will begin its marketing "roadshow" on June 4, then price the IPO on June 11, with trading to start the next day.
So that's the SpaceX IPO date: June 12.
NASDAQ: RKLB
Key Data Points
Is the SpaceX IPO good news or bad news for Rocket Lab?
This means space investors have less than a month remaining before the SpaceX IPO. Less than a month to trade space stocks amid the IPO excitement. Less than a month for Rocket Lab stock, which is up 61% in the past two weeks, to keep rocketing.
In other words, this momentum stock may soon run out of gas.
The worst news for Rocket Lab is that once SpaceX does IPO, it may suck all the oxygen out of the room. Investors who are excited about SpaceX will be able to buy the actual SpaceX, not just invest in second-string substitutes for the biggest space company on Earth.
When that happens, I expect other space stocks to fall. In fact, this may already be happening today.
