Space Stocks Plunge as China’s Rocket Milestone Rattles SpaceX, Sends Shares Below IPO Price

U.S. space stocks cratered Monday (July 13), with several names hitting or nearing all-time lows. The selloff was driven by a one-two punch: China’s landmark achievement in reusable rocket technology, which undercut the narrative around SpaceX’s technical moat, and a spike in oil prices tied to Middle East geopolitical tensions that triggered a rotation out of high-beta, pre-profit growth names. Markets were closed for a holiday on July 15, 2026, leaving prices at the prior session’s close. According to Finnhub, Amazon (AMZN) last traded at $254.96, up 3.02% (+$7.47) from its prior close of $247.49, with a session range of $249.75 to $256.48. No price changes occurred during the holiday.^[CNN]

China Rocket Milestone Hits SpaceX Narrative, Stock Breaks Below IPO Price

SpaceX (SPCX) fell 5% to $138.58 on Monday, a record low. That price is not only below its June 16 peak of $225 but also beneath its $150 IPO price. The stock had already lost 10% in the prior week.^{[24/7 Wall St.]}

The immediate catalyst came from China. On July 10, the Long March 10B rocket successfully recovered its first-stage booster using an offshore net-catch platform — China’s first orbital-class booster recovery. Bernstein called it a milestone and labeled China a “major competitor” to SpaceX.^{[24/7 Wall St.]}

Despite the market’s sharp reaction, Wall Street analysts are split. Bernstein maintained its Outperform rating and $239 price target on SpaceX, arguing the company still holds a massive lead with roughly 165 launches last year and nearly a decade of Falcon 9 reuse experience, while China has only one successful landing and has yet to demonstrate booster reuse. According to 24/7 Wall St., the average Wall Street price target for SPCX is around $242, with Raymond James as high as $800. Bears focus on valuation concerns, arguing that with no direct way to model the privately operated business, the market cap relative to the current share price looks speculative.^{[24/7 Wall St.]}

Rocket Lab Falls on Macro Headwinds Despite Military Mission Success

Like SpaceX, Rocket Lab (RKLB) fell 4% to $78.10 on Monday. Notably, the decline came even after the company announced a major win: its VICTUS HAZE rapid-response space demonstration for the U.S. Space Force was a success, launching just 16 hours and 42 minutes after receiving the order — a new record.^{[24/7 Wall St.]}

The “buy the rumor, sell the news” — or more accurately, “good news drowned out by macro” — pattern underscores the tough market environment. Bank of America maintained its Buy rating and $115 price target on RKLB after the latest developments.^{[24/7 Wall St.]}

Geopolitical Tensions Drive Oil Higher, Risk-Off Sentiment Sweeps Market

The broader space-sector selloff unfolded against a backdrop of widespread risk aversion. According to 24/7 Wall St., conflict in the Strait of Hormuz pushed WTI crude up 4.41% in the past 24 hours to $74.56/barrel. Rising oil is typically seen as a headwind for tech and growth companies that rely on cheap energy, and it can stoke inflation fears, driving capital toward safer assets. The Nasdaq 100 fell 1.09% on the same day, confirming the pressure on high-beta, pre-profit names.^{[24/7 Wall St.]}

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