Rocket Lab Soars 400% as Space Stock Shorts Get Crushed
SkimNews Take
The "tens of trillions" valuation for SpaceX implies a future where space-based infrastructure is not merely complementary but a foundational layer for new economic activity, driving the broader sector's speculative fervor.
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- Rocket Lab shares climbed almost 400% over the trailing 12 months heading into Wednesday trading, making the stock one of the clearest beneficiaries of the squeeze, per Barron's.
- Short sellers in space stocks are "getting their face ripped off," per Barron's, with the pain concentrated in names like Rocket Lab and AST as the trade moves against them.
- Barron's explicitly compares the space-stock rally to the EV bubble, framing the surge as a speculative excess rather than a fundamentals-driven re-rating.
- SpaceX's long-anticipated IPO looms as the potential flashpoint Barron's cites, with the article questioning whether the event will be the catalyst that ends the squeeze or extends it.
Why it matters: Short sellers who positioned against space stocks are now nursing losses as Rocket Lab prints a 400% 12-month gain and peers like AST catch a bid, and Barron's comparison to the EV bubble implies the trade is late-cycle — meaning anyone still short faces squeeze risk, while anyone still long faces the risk that a SpaceX IPO event marks the top.
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