Space-related equities extended their remarkable rally on Tuesday, with Rocket Lab USA (RKLB) jumping over 8% to trade above $143. The surge was fueled by renewed speculation that SpaceX may pursue an initial public offering valued at up to $1.75 trillion, potentially raising as much as $75 billion. The buzz lifted the entire sector, with Planet Labs (PL) and Intuitive Machines (LUNR) also posting strong year-to-date gains.
Rocket Lab’s rally was more than just a sympathy trade, however. The company recently reported first-quarter 2026 revenue of $200.3 million, a 63.5% increase year-over-year, and a record backlog of $2.2 billion. It also secured a $90 million contract with the U.S. Space Force to design and build two geostationary satellites—a milestone that opens a higher-value market segment involving communications, weather monitoring, and military surveillance. Analysts see the deal as a significant step in Rocket Lab’s evolution from a small-satellite launcher to a vertically integrated spacecraft manufacturer.
From a technical perspective, RKLB has now gained 372% over the past 12 months and is trading well above all major moving averages. However, the relative strength index (RSI) suggests overbought conditions, with key support near the 20-day simple moving average at $104.87. Analysts caution that a “buy the rumor, sell the news” scenario could unfold once the SpaceX IPO actually occurs.
The broader space sector continues to attract both retail and institutional investment. The Tema Space Innovators ETF (NASA) has already amassed over $1.7 billion in assets shortly after its launch. Strong organic growth is also evident: Planet Labs reported Q1 revenue of $86.8 million, up from $61.5 million a year ago, while Intuitive Machines is projected to generate $947 million in revenue this year, a 351% jump. Nevertheless, all three companies remain unprofitable, and valuations have become stretched, raising the risk of sharp corrections if investor sentiment shifts.
