Space stocks plunge as SpaceX IPO sparks profit-taking and short seller criticizes sector's viability.

Space stocks fell sharply after SpaceX began trading publicly under the ticker SPCX, with shares rising 25.77% but triggering profit-taking in other space companies. A short seller report from Fugazi Research criticized six space-related stocks, calling the sector more speculative than commercially viable and highlighting weak financials and unrealistic business plans. Key targets included Virgin Galactic, Sidus Space, AST SpaceMobile, Redwire, Momentus, and Rocket One. The report suggests that the excitement around SpaceX's IPO may cause a re-rating and decline in valuations for other space stocks lacking solid revenue or operations.