Space Stocks Get Torched: Short Seller Calls Them 'Sci-Fi Wishes'

Space stocks got torched Friday as SpaceX (NASDAQ:SPCX) opened for trading, and a short seller attacked six names in the sector. 

• SPCX stock is open for trading. See the chart and price action here.

Fugazi Research published a short report targeting six publicly traded names, declaring that the commercial space sector is “not an industry in the conventional sense of the word but a capital recycling mechanism dressed in the aesthetic of human ambition.” The firm added that the sector’s “business plan portfolio reads as a list of sci-fi wishes rather than a collection of investable commercial opportunities.”

Short Thesis

The firm’s central thesis: the sector’s entire premium rests on one trade — buy public space proxies before SpaceX goes public via its SPCX listing, then ride the re-rating.

Fugazi argues that trade is about to unwind. 

“When SpaceX begins trading under SPCX, giving capital direct access to the only space company with actual revenue, actual launch dominance, and actual recurring cash flows,” the report states, the structural reason to hold any of the six names at a premium “amounts to zero.”

The Targets

Benzinga reached out to the companies named in the report, but did not immediately receive a response.

AST SpaceMobile, Inc. (NASDAQ:ASTS): Fugazi’s most detailed takedown targets the sector’s largest name. The firm pointed to AST's 60% Q1 revenue miss and forward its price-to-sales of 140 times to 186 times management’s own guidance range. 

Redwire Corp. (NYSE:RDW): Fugazi describes Redwire as “a rollup machine with governance dysfunction.” The report flags Redwire's recent combined $850 million ATM facility, active securities litigation, insider selling and the CEO continuing to execute acquisitions as the cash runway compresses. 

Virgin Galactic Holdings, Inc. (NYSE:SPCE): Fugazi points out that analyst consensus for Virgin Galactic's Q2 revenue stands at $244,800 — a figure the firm notes was revised downward 86.67% in just three months. 

The report highlights that Virgin Galactic has guided Q4 commercial flight commencement for four consecutive years, and that the vehicle has completed one unpowered glide test.

Sidus Space, Inc. (NASDAQ:SIDU): Fugazi notes that Sidus Space generates only about $3 million in annual revenue, just raised $100 million and, in the firm’s view, will need to raise more.

Momentus Inc. (NASDAQ:MNTS): Fugazi calls Momentus Inc. the sector’s “cleanest mathematical proof” that analyst estimates are disconnected from reality. The firm also flags that shares outstanding surged 355% in a single quarter, driven by equity raises rather than operational performance.

Rocket One (NASDAQ:RKTO): Fugazi notes that Rocket One was known as Hoth Therapeutics — a clinical-stage dermatology company with no approved products — until eleven days before the report’s publication. 

The firm points out that cash on hand as of March 31, 2026 stood at $4 million against an accumulated deficit of $75.6 million, with zero revenue and zero space operations. A going concern qualification is already on file.

SpaceX Begins Trading

Adding to the sector's woes, investors "sold-the-news" as SpaceX shares opened for trading at $150 per share, according to Benzinga Pro data. 

Traders booked profits on the other space stocks that had run up sharply ahead of the SpaceX IPO. 

SPCX Stock Price Activity: SpaceX shares were up 25.77% at $169.79 at the time of publication Friday, according to Benzinga Pro.

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