Space Stocks Bottoming: Which Are Positioned Best for a Bounce?
Last year was a breakout period for the space industry, with several small-cap space stocks surging in value and transitioning into mid-cap status, attracting retail and institutional investors.
However, 2025 has brought a stark contrast, as risk aversion in U.S. equities has led to sharp declines in high-growth and speculative stocks, including those in the space sector.
With several of these stocks attempting to bottom, which ones are best positioned for a potential rebound? Let’s examine the technical setups of some of the industry’s most exciting players.
Explosive Gains in 2024 to Sharp Declines in 2025
In 2024, space stocks like Rocket Lab USA, Intuitive Machines, and Redwire Corporation saw remarkable gains fueled by technological advancements, rising commercial demand, and strong investor enthusiasm for the expanding space economy.
Rocket Lab’s stock skyrocketed over 360%, driven by a record-setting number of Electron rocket launches and expanded partnerships. Intuitive Machines saw an extraordinary 720% increase and became the first private company to land on the Moon and secure a $4.8 billion NASA contract. Redwire Corporation climbed 436%, benefiting from high-profile missions like the European Space Agency’s Hera project and its contributions to space infrastructure.
This bullish momentum was further supported by projections of a $1 trillion space economy by 2040 and a renewed political focus on space exploration.
However, in early 2025, these stocks faced significant declines due to profit-taking, valuation concerns, and broader market corrections. After such rapid growth, investors have started reassessing the speculative nature of these companies, many of which remain unprofitable despite strong revenue growth.
If market sentiment and structure shift back in favor of the bulls, which of these space stocks are best positioned for a bounce? Let’s take a closer look.
Which Space Stock Shows the Best Potential for a Rebound?
Redwire Corporation (NYSE: RDW) is currently 56% off its 52-week highs from mid-February, a steep decline in just over a month. The company specializes in space infrastructure and technology, providing critical components such as solar arrays, sensors, and deployable booms.
Before its breakout last November, RDW was consolidating near the $10 level, an area that has since acted as strong support alongside its 200-day simple moving average (SMA).
The stock is currently holding above this key level, suggesting the worst of the decline may be over. However, with significant overhead supply, the stock faces a challenging path to recovery.
While a bottom appears to be forming, the technical setup suggests that bulls may have a steep climb ahead in attempting to regain momentum.
Rocket Lab Technically Bullish
Rocket Lab (NASDAQ: RKLB) remains one of the most well-known and successful space companies. It specializes in small satellite launches, spacecraft systems, and reusable rockets, including the Electron, a potential competitor to Elon Musk’s SpaceX.
Despite falling nearly 40% from its recent 52-week high, RKLB has shown resilience by holding above its 200-day SMA. Notably, the stock did not fill the gap from its November earnings, when it gapped from under $15 to almost $20 following its earnings release.
While its recent pullback was likely justified after its exceptional 2024 run, the fact that it failed to break below the 200-day SMA and has since formed a double-bottom above $15 while reclaiming its 20-day SMA indicates that buyers remain active and in control.
From a technical standpoint, RKLB appears more bullish than RDW, suggesting its recent decline is a pullback within a longer-term uptrend rather than a broader reversal.
Intuitive Machines Stock in Wait-and-See Mode
Intuitive Machines (NASDAQ: LUNR) has experienced a dramatic decline, falling 63% from its January 52-week high of nearly $25 per share. Several negative catalysts have contributed to this sharp downturn, with perhaps the most damaging being the failure of its lunar lander mission in early March.
After touching down on the Moon’s surface, the mission ended prematurely due to technical issues, causing the stock to plummet.
Currently trading below its 200-day SMA, LUNR remains under bearish control. However, with elevated short interest and a significant YTD decline, the potential for a short squeeze or a sharp rebound exists if market conditions improve. That said, from a technical perspective, LUNR remains the weakest of the three stocks.
Until it can reclaim and consolidate above its 200-day SMA, there are more favorable technical setups for investors looking to gain exposure to the space industry’s correction.
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