Blue Origin’s New Glenn rocket entered orbit on January 16, 2025, after its maiden flight from the Kennedy Space Center in Cape Canaveral, Florida.
Greg Newton | AFP | Getty Images
Pure-play space stocks were higher on Tuesday, with one Wall Street analyst blaming the rebound on the industry’s boom following the president’s election. Donald Trumpof inauguration ceremony.
“After the election, there seems to be a very deep and widespread excitement about opening up private space opportunities,” Deutsche Bank analyst Edison Yu told CNBC.
“It’s not just the headlines. When you talk to any (venture capital) investor, any institutional investor, any family office…it seems like everyone is getting more interested and excited about the space,” Yu said its coverage includes six aerospace companies: Krishna, iridium, planet, rocket lab, Telecom Satellite Corporation and Via Satellite.
Several stocks in the sector have gained nearly 20% or more without obvious individual drivers, including MinarikRocket Lab, wonderful moments, intuitive machineplanets and Connected.
Redwire rose 51.4%, making it the day’s best-performing stock announces its acquisition plans Defense technology company Edge Autonomy spent nearly $1 billion to acquire the company, so it expects full-year revenue in 2025 to be as high as $605 million, about double last year’s revenue.
Investors also boosted Viasat, rising 32.9%, as it reiterate NASA selected it as one of the four companies Signed a five-year communications contract worth up to US$4.8 billion to provide satellite connectivity services as part of the “Near Space Network.”
Trump briefly touched on space in his inaugural address, but did not mention NASA or the space agency’s Artemis program, which currently has a top priority of returning astronauts to the moon.
Trump told SpaceX CEO: “We will send our mission to the stars, launch American astronauts, plant the Stars and Stripes on Mars.” Musk The audience behind them cheered.
Aerospace stocks generally have United since the presidential electionSeveral companies have seen their share prices double or more in the past three months, according to FactSet.
Deutsche Bank’s Yu points to three catalysts for the industry: Trump’s policies Jared Isaacman Nominated The anticipation of becoming the next NASA administrator, massive trading volume from retail investors, and more billions of dollars in federal contracts up for grabs.
“Jared Isaacman’s selection as the next NASA administrator has been well received by the institutional community. If you talk to investors who follow space closely, if you talk to people who run companies, this is considered It’s very positive,” Yu said.
Space stocks rebound sharply in 2024 The industry has declined significantly in previous years. According to FactSet data, several companies have seen their share prices rise significantly in the past 12 months, including Intuitive Machines up 779%, Redwire up 715%, AST SpaceMobile up 648%, and Rocket Lab up 543%.
However, Yu does not “expect them to repeat their crazy performance in 2024 in 2025.” He described last year’s rally as a sharp recalibration of valuations that were “trading at very depressed levels.”
“Needless to say, these valuations are much higher than they were six months ago or even three months ago,” Yu said.
