Planet Labs Sinks 10%, Intuitive Machines Drops 8%, Firefly Aerospace Falls 7% as Traders Rush to SpaceX

Space sector stocks experienced a sharp decline on Tuesday, with Planet Labs falling 10% to around $27, Intuitive Machines dropping 9% to $23, and Firefly Aerospace losing 7% to $31. Virgin Galactic also fell 8% to $3.28, extending its long-term struggles. The selloff occurred despite no company-specific negative news, as traders redirected attention to SpaceX’s newly listed stock (SPCX), which has dominated investor flows since its debut. SpaceX disclosed a $60 billion option agreement to acquire Cursor, an AI coding company, with the deal announced April 19 and exercisable within 30 days of its IPO or by September 30. Analysts note the broader trend reflects speculative rotation, with SpaceX’s high-profile listing and AI deal drawing capital away from smaller space stocks. Planet Labs, Intuitive Machines, and Firefly Aerospace remain up 38%–45% year-to-date, though Virgin Galactic’s shares are down 99% over five years. Investors are watching whether today’s losses persist or reverse, given the sector’s history of quick rebounds after sentiment-driven pullbacks. However, with SpaceX absorbing significant capital, recovery for the other stocks may take longer. Analysts maintain upside potential, with average price targets of $40 for Planet Labs and $40.78 for Intuitive Machines, though valuations remain elevated. The shift is also visible on Reddit, where sentiment toward Virgin Galactic flipped from bullish to bearish amid comparisons with SpaceX’s performance. Traders are advised to monitor SpaceX’s Cursor deal timeline and Virgin Galactic’s upcoming Q3 2026 flight testing for further clues.