Rocket Lab falls sharply as SpaceX IPO excitement cools

Sector rally tied to SpaceX listing

Foreign Policy Journal reports that space stocks surged earlier in 2026 after the blockbuster initial public offering of Space Exploration Technologies, trading under the ticker SPCX. The article says the listing lifted a broad group of companies in the space sector as investors anticipated SpaceX’s move into the public market.

SpaceX trading and earnings

According to the report, SpaceX shares later became volatile after listing, moving between $105 and $225 before settling close to the IPO price. The article says SpaceX also reported earnings showing that launch revenue reached $1.8 billion, which was 6% higher than a year earlier. It adds that SpaceX has expanded beyond launch services into a business spanning space, communications, and artificial intelligence.

Rocket Lab’s decline and business focus

Foreign Policy Journal says Rocket Lab (NASDAQ: RKLB) has fallen more sharply, dropping 65% from a June peak near $150. The article says that decline has raised questions about the company’s valuation and led investors to ask whether the selloff is an opportunity.

The report describes Rocket Lab as a more focused pure-play space company than SpaceX. It says the company concentrates on launch services, space equipment, and related infrastructure.

Electron and Neutron rockets

The article says Rocket Lab’s Electron small-lift rocket can carry payloads of up to 660 pounds to low Earth orbit. It describes Rocket Lab as the second-most-used launch provider in the United States, while noting that it still trails SpaceX by a wide margin in total capacity.

Looking ahead, the report says Rocket Lab’s medium-lift Neutron rocket is designed to carry payloads about 40 times larger than Electron. Foreign Policy Journal says that capability could materially increase Rocket Lab’s market opportunity and competitive position.