Space Stocks Rise Amid Feud Between Trump and Musk

A feud between SpaceX CEO Elon Musk and President Donald Trump has fueled interest in space stocks. AST SpaceMobile, Virgin Galactic, and Intuitive Machines have seen significant share price increases, while Rocket Lab postponed its Electron launch due to weather. AST SpaceMobile received a boost from a Scotiabank analyst note speculating about an Amazon investor. The feud has opened up new government contract opportunities for SpaceX competitors, leading to speculation about potential investments from Jeff Bezos.

A public feud between SpaceX CEO Elon Musk and President Donald Trump has sparked significant interest in the space stock market. This week, shares of AST SpaceMobile Inc. (ASTS), Virgin Galactic Holdings Inc. (SPCE), and Rocket Lab Corp. (RKLB) have seen notable increases, while Rocket Lab postponed its Electron launch due to weather conditions. The feud has opened new government contract opportunities for SpaceX competitors, leading to speculation about potential investments from Jeff Bezos.

The conflict began last week when Musk criticized a large tax bill being pushed by Trump, leading to a heated exchange on social media platforms. Musk threatened to decommission SpaceX's Dragon spacecraft, which is currently the only option for carrying crew members to the International Space Station. This announcement sent shockwaves through the space industry, with investors shifting their attention to alternative space players like Rocket Lab and AST SpaceMobile.

AST SpaceMobile's shares have been particularly buoyed by a Scotiabank analyst note speculating about an Amazon investor. The company stands to gain from changes in governmental space and communications policies through its satellite broadband services and alliances with telecommunications industry leaders. Additionally, the company's relationship with Blue Origin, which signed a deal last November for the launch of up to 45 satellites, has been strengthened by the feud.

Rocket Lab, known for its consistent progress in satellite launches and expansion in space systems, has also seen a surge in investor confidence. The company is viewed as a viable competitor in the commercial and government space sectors, boosting its stock and investor confidence amid the turbulence surrounding SpaceX.

Virgin Galactic, which was up nearly 15% in after-hours trading on Thursday, has also benefited from the feud. The company's stock has been supported by the potential for increased government contract opportunities and the broader interest in the space sector.

The feud has opened up new government contract opportunities for SpaceX competitors, leading to speculation about potential investments from Jeff Bezos. The U.S. could also turn to Blue Origin to help lower reliance on SpaceX. AST SpaceMobile is one of Blue Origin's top customers, and the companies signed a deal last November for the launch of up to 45 satellites.

The feud between Musk and Trump comes about two weeks after Trump announced the architecture for a $175 billion Golden Dome missile defense system. The system will feature next-generation technologies, including "space-based sensors and interceptors," and "a lot" of American companies will be involved, according to Trump. The tax bill, referred to as Trump's "big, beautiful bill," is expected to include $175 billion for the Golden Dome project.

Rocket Lab and AST SpaceMobile are trading higher on above-average volume. Rocket Lab's session volume was around 35 million at last check, well above its average volume of approximately 16 million. Meanwhile, AST SpaceMobile has seen 15 million shares exchanged on Monday, above its average session volume of about 10.6 million, according to Benzinga Pro [1].

RKLB, ASTS Price Action: Rocket Lab shares were up 7.92% at $31.21 and AST SpaceMobile shares were up 16.9% at $36.55 at the time of publication Monday, according to Benzinga Pro [1].

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/06/45841062/rocket-lab-ast-spacemobile-shares-are-surging-monday-whats-fueling-the-move
[2] https://www.benzinga.com/news/space/25/06/45805188/rocket-lab-ast-spacemobile-virgin-galactic-shares-are-rising-after-hours-whats-going-on
[3] https://www.theglobeandmail.com/investing/markets/stocks/RKLB/pressreleases/32771378/rocket-lab-stock-rklb-pops-as-musktrump-feud-hits-spacex/
[4] https://stocktwits.com/news-articles/markets/equity/ast-space-mobile-rallies-as-trump-musk-clash-spurs-bets-on-rival-contract-wins-retail-s-extremely-bullish/chkzlI1Rbxr