Track market-moving stories before they get noisy

Space Exploration Technologies brought excitement to the space sector ahead of its initial public offering (IPO). But when the hype wore off, some space stocks fell back down to Earth.

Since SpaceX began trading to the public on June 12, the stock price of space and defense tech company Redwire (RDW -4.83%) plummeted 43% from July 12 to July 20. It's still up more than 20% in 2026, but over the last year, shares have dropped over 42%.

There's a bullish case that any significant pullbacks, like the one we've seen since June, could be a buying opportunity. Still, there are a few issues to factor in before making an investment decision.

Image source: Getty Images.

The upside of Redwire Redwire helps make space missions possible through its antennas, power generation, trackers, and camera systems. That helps give its products an essential nature in the space industry. But its most unique operations are in providing space-based research and manufacturing capabilities for endeavors ranging from regenerative medicine to crop production.

Its revenue in its space division is flat, but it's making up for that by capturing increasing sales through its defense segment.

Q1 2025 Revenue

Q1 2026 Revenue

Defense: $9.3 million

Defense: $44.3 million

Space: $52.1 million

Space: $52.7 million

Data source: Redwire Q1 2026 Investor Presentation

In the first quarter of 2026, Redwire also reported a record backlog of nearly $500 million, indicating increasing demand for its products and services. That appears to be reflected in Redwire's 2026 full-year revenue forecast; it reported around $335 million in revenue in 2025 and expects 2026's total to fall in a range of $450 million to $500 million.

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What keeps weighing on the stock Redwire experienced a sell-off after SpaceX went public, but issues had been brewing before then. One was shareholders worried about dilution when Redwire announced in June that it was selling up to $500 million in common stock.

Another concern is growing losses. For 2025, Redwire reported net losses increased by $112.2 million to $226.6 million, and it already reported a net loss of $76.5 million in the first quarter of 2026.

In addition, while its backlog is a proof point of growing demand, Redwire still needs to convert that backlog into actual revenue. If it can't start chipping away at the backlog, it would likely have to keep issuing new stock if it finds itself in a tight financial position. At the end of the first quarter of 2026, Redwire reported total liquidity of $175.2 million.

Redwire shows some long-term promise, but I'd still be comfortable sitting on the sidelines until it cuts down on its losses and starts turning more of that backlog into revenue.

Booming space stocks have started to bust after a multiyear run. This timed up perfectly after the Space Exploration Technologies IPO last month, which has sent many stocks down in an elevator-like fashion in the ensuing weeks. AST SpaceMobile (ASTS -0.13%) is down 52% from its highs, while Redwire (RDW -2.12%) has fallen 64%, taking investors on a roller coaster of volatility.

The two space economy stocks are now trading at massive discounts compared to just a few weeks ago. But which is the better buy for your portfolio today? If you look at the numbers, the answer is clear.

Image source: Getty Images.

AST SpaceMobile operates in a competitive satellite internet sector AST SpaceMobile has seen significant appreciation in its share price, pushing its market capitalization to $22 billion despite generating close to zero revenue. Investors are excited about this stock because it aims to build a satellite internet business with direct-to-device capabilities. This means that it will beam the internet directly to a smartphone without the need to carry around a terminal everywhere, as is necessary today with SpaceX's Starlink service.

Its technology has proven effective, giving it an addressable market of billions, if not tens of billions, in the fast-growing satellite internet market. However, AST SpaceMobile has just launched its 10th satellite into orbit, and will need many more to build a truly global service that reaches millions of customers simultaneously. Management's goal is to deploy 45 satellites by the end of 2026, but it is well behind schedule so far.

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Where AST SpaceMobile runs into issues is the need to rely on launch partners to get its payloads into orbit, including SpaceX, its competitor. SpaceX prioritizes its own satellites over AST SpaceMobile's, which may delay AST SpaceMobile's satellites from reaching orbit in a timely manner.

AST SpaceMobile is currently generating little in revenue and is burning a lot of cash, with negative free cash flow of $1.37 billion over the past 12 months. This cash burn is likely to continue for the next few years, which is why management just added more debt to its balance sheet. At the same time, SpaceX is working on its own direct-to-device technology that could render moot any burgeoning competitive advantage from AST SpaceMobile.

Redwire is a diversified defense and space technologies provider Redwire is a defense and space economy player, but it's not centered on one bet in satellite internet like AST SpaceMobile. The company operates in many different subsectors, including drones, communication systems, energy, and spacecraft, and also caters to the defense market. With the rising budget for the Space Force and the increasing priority of space systems in the United States' defense, Redwire has a potentially massive tailwind for its business over the next decade.

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Investors are seeing that play out in its financial performance. Last quarter, the company's book-to-bill ratio -- which measures the amount of new contracts it won versus how much it billed in the period -- was 1.92x, helping its backlog increase to $498 million.

For the full year, Redwire expects revenue of $450 million to $500 million, up from $371 million in the last 12 months. It is not yet profitable, but is seeing a rapid improvement in gross margins, from 14.7% in the first quarter of 2025 to 26.6% in Q1 2026. It is burning less in free cash flow than AST SpaceMobile, at negative $165 million over the last 12 months, making any liquidity issues less of a concern for shareholders.

Data by YCharts.

Which is the better buy? AST SpaceMobile has massive growth potential. But that also comes with far more risks than the more established revenue drivers of a company like Redwire. Plus, AST SpaceMobile is on a steep cash burn trajectory that could deplete its cash balance within a few years.

Redwire also trades at a much more reasonable multiple of its trailing sales, with a price-to-sales ratio (P/S) of 3.5 compared to AST SpaceMobile's 187. Redwire has a smaller market cap of $2 billion compared to AST SpaceMobile's $22 billion.

Add it all up, and Redwire looks like a more promising space stock than AST SpaceMobile today.

Redwire Corporation (RDW +9.48%) stock investors had an amazing day Tuesday, with their stock closing up 9.4% on a couple of announcements suggesting Redwire has momentum:

Yesterday, Redwire announced a "major expansion" of its Huntsville, Ala., factory for building Stalker UAS armed surveillance drones.

And today, Redwire opened a second factory in Georgetown, Ind., to produce "microgravity payloads" for operation in space.

Image source: Getty Images.

Redwire's a space stock -- and a defense stock, too Redwire started off life as a space company, specializing in developing space "infrastructure" -- not rockets or satellites per se, but primarily equipment for use in space, on board satellites and space stations.

Early last year, Redwire pivoted hard into the defense sphere, spending $925 million to acquire drone company Edge Autonomy and its portfolio of artificial intelligence-enhanced military drones.

This week's twin announcements confirm Redwire's interest in keeping both these businesses -- and indeed expanding them. The Huntsville factory will add 164,000 square feet for both space and defense production. Redwire plans to complete construction by Q4 2027.

Meanwhile, in Indiana, Redwire just opened an additional 30,000 square feet of space to develop microgravity payloads for conducting experiments and manufacturing goods in Low-Earth Orbit and on the moon. Redwire noted in its announcement that the focus of the Georgetown facility will be "pharmaceutical/biotech innovation."

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Redwire's biggest risk Unmentioned in either announcement, I fear, is the cost of expanding and building the facilities -- but that's definitely a number investors should watch out for. Redwire reported losses of $300 million over the last 12 months and is burning cash at the rate of about $155 million per year.

Building new factories may be necessary as Redwire scales up. It's not doing the company's bank account statement any favors, though.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Redwire Corporation (NYSE:RDW) is trending Tuesday after a busy start to the week, with the company opening a new research facility in Indiana and announcing a major manufacturing expansion in Huntsville, Alabama.

Redwire stock is showing exceptional strength. Why are RDW shares rallying? Redwire Expands Microgravity Innovation in IndianaThe company marked the opening with a ribbon-cutting ceremony on July 20, attended by Indiana Governor Mike Braun, Redwire Chairman and CEO Peter Cannito, and several former NASA astronauts.

“The new Georgetown facility serves as the cornerstone of Redwire’s ability to scale, support major programs around the world, and help shape the expanding orbital economy that will drive the future of space development while benefiting millions here on Earth,” said Mike Gold, President of Redwire Space.

Redwire Expands Huntsville Campus, Adds150 Jobs“Huntsville is one of the fastest growing technology hubs in the United States, uniquely positioned at the intersection of America’s space and defense industries, which makes it the ideal location to expand our capabilities and strengthen America’s industrial base,” said Cannito.

Redwire Shares RiseRDW Price Action: At the time of publication, Redwire shares are trading 2.68% higher at $8.83, according to data from Benzinga Pro.

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JACKSONVILLE, Fla.--(BUSINESS WIRE)---- $RDW--Redwire Corporation (NYSE: RDW), a global leader in space and defense technology solutions, has opened its new 30,000 square foot state-of-the-art, vertically-integrated research and microgravity payload development facility in Georgetown, Indiana. The facility will serve as a global hub supporting accelerated demand as the company continues to expand its leadership in space-enabled research, development, and manufacturing with a focus on pharmaceutical/biot.

FARNBOROUGH, England--(BUSINESS WIRE)---- $RDW--Redwire Corporation (NYSE: RDW), together with the State of Alabama and the City of Huntsville, today announced a major expansion of Redwire's Huntsville campus, reinforcing Alabama's position as a national leader in aerospace, defense, and advanced, U.S.-based manufacturing. Redwire is adding 164,000 square feet to its operational footprint in Huntsville, increasing the company's manufacturing and engineering capacity to develop and produce mission-critic.

Peter Anthony Cannito Jr., Chairman and CEO of Redwire Corporation (RDW 10.10%), disposed of 25,369 shares of common stock on July 11, 2026. SEC Form 4 filing

Transaction summaryMetricValueShares sold25,369Transaction value~$258,256Post-transaction shares (directly held)~632,000Post-transaction value$6.1 millionTransaction value based on SEC Form 4 weighted average sale price ($10.18).

Key questionsIs this transaction indicative of management's sentiment toward the stock?
The sale was non-discretionary, occurring automatically to satisfy tax liabilities linked to the vesting of equity awards. This type of administrative activity is typical of executive compensation and does not signal the CEO's outlook on the company's valuation.What is the extent of Peter Anthony Cannito Jr's remaining equity position?
The CEO continues to hold ~632,000 shares directly in the company. Based on the $9.59 market close as of July 13, 2026, this remaining stake is valued at $6.06 million, confirming a high level of skin in the game despite the routine tax-related disposition.How does Redwire Corporation's current scale align with its reported financials?
The company, which operates in the space and defense technology sectors, has a market capitalization of $2.3 billion. For the trailing twelve months, it generated $371.0 million in revenue and reported a net loss of $300.1 million, reflecting its current phase of infrastructure and payload solution development.How did the execution price compare to the broader market valuation?
The shares were withheld at $10.18 per share. As of the July 13, 2026 market close, shares were priced at $9.59, indicating that the tax settlement occurred at a price level approximately 6% above the subsequent trading close.Company OverviewMetricValueShare Price (as of market close 2026-07-13)$9.59Market Capitalization$2.3 billionRevenue (TTM)$371.0 millionNet Income (TTM)-$300.1 millionCompany SnapshotRedwire Corporation designs and manufactures critical space infrastructure and solutions, including advanced sensors, avionics systems, star trackers, sun sensors, camera systems, and infrared and space situational awareness payloads for government and commercial customers.The company generates revenue through the design, development, and delivery of specialized space technology solutions across two operating segments -- Space and Defense Tech -- serving both U.S. government agencies and international commercial space customers.Redwire's primary customers include U.S. government defense and space agencies, commercial satellite operators, and international space organizations that require mission-critical navigation, imaging, and positioning systems for spacecraft and space infrastructure applications.Redwire Corporation is a specialized aerospace and defense contractor with a $2.3 billion market capitalization, headquartered in Jacksonville with approximately 1,410 employees. The company focuses on providing essential space infrastructure technologies that enable accurate spacecraft navigation, control, and situational awareness for both government and commercial space missions. Despite current net losses, Redwire's strategic positioning in the growing commercial space and government defense sectors reflects investor confidence in its long-term market opportunity and technological capabilities.

What this transaction means for investorsWhile the headline may sound negative, Redwire’s CEO selling shares in this instance isn’t anything for investors to worry about. It is merely made to cover tax liabilities from their stock awards.

As for the Redwire stock itself, it offers a ton of intrigue -- but also a ton of volatility. In just the last year, Redwire started at around $17 per share, dropped as low as $5, briefly soared to $25, and has settled back in around $8. True to its roots, the company is a serial acquirer of space parts and related defense businesses, which adds to this volatility, as it is hard to gauge how Redwire is trending profitability-wise due to the never-ending one-off integration costs.

That said, management believes the company is nearing breakeven adjusted EBITDA, and it grew sales and its backlog by 58% and 71%, respectively, in the last quarter. Trading at just 3.4 times sales -- compared to its aerospace parts peer Heico’s 9.9 -- I’d argue the company isn’t outrageously valued with its shares down 50% over the last year. Yes, it is a high-risk, high-reward growth stock due to its aggressive acquisition strategy, but it could become the Heico of the space industry over time, offering multibagger potential in the long term. I’ll be looking to add to my starter position following its recent share price plunge.

Redwire (RDW 2.77%), a producer of space mission components, went public through a merger with a special purpose acquisition company (SPAC) on Sept. 3, 2021. Its stock opened at $11.07, set a record high of $25.90 on May 28, 2026, but now trades at $10.18 per share.

Redwire initially impressed investors with its robust revenue growth, but some concerns about its dilution, widening losses, and accounting accuracy crushed its stock. Does that 61% pullback from its all-time high represent a buying opportunity or a bright red flag?

Image source: Getty Images.

How fast is Redwire growing? Redwire develops critical navigation, power, and 3D-printing components for satellites, space stations, and other spacecraft. It also builds military drones and custom components for missile defense and military communications systems. Its customers include NASA, the Department of Defense, and large commercial space contractors.

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In 2025, Redwire's revenue rose 10% to $335 million, but its net loss nearly doubled from $114 million to $227 million. Those widening losses were caused by higher estimated project completion costs, goodwill impairment charges from its recent acquisitions, increased spending on its military drone projects, and higher stock-based compensation expenses.

From 2025 to 2028, analysts expect Redwire's revenue to grow at a 26% CAGR to $664 million as it narrows its net loss to $43 million. That growth should be driven by the construction of orbital data centers, more low Earth orbit (LEO) satellites, new lunar missions, and the development of more sophisticated drones for the U.S. military.

What problems does Redwire face? Redwire ended the first quarter of 2026 with $175 million in total liquidity. But on June 9, it announced an at-the-market (ATM) equity offering to sell up to $500 million in new common stock. That's a lot of dilution compared to its market cap of $2.4 billion. It's already increased its share count by 232% since its public debut.

To make matters worse, Redwire received an "adverse internal controls opinion" from its auditor, KPMG, after its 2025 report. That opinion is a bright red flag, since it suggests Redwire's internal financial controls are unstable and could increase its risk of serious accounting errors.

Those headwinds, along with its persistent losses and a waning interest in space stocks after SpaceX's record-setting IPO cooled off, sent Redwire's stock crashing. It might seem reasonably valued at five times this year's sales, but its dilution and potential accounting issues make it an unattractive investment. I'd rather stick with some of the market's more resilient space stocks than this speculative supply chain player.

The space economy is a popular investing topic right now, as Space Exploration Technologies completed its record-setting initial public offering. SpaceX stock remains a hot commodity, with the company sporting a market capitalization of more than $2 trillion.

But while SpaceX is soaking up a lot of attention, several other companies are also playing important roles in building out the space economy. And while they're flying somewhat under the radar right now, I think AST SpaceMobile (ASTS +3.71%), Intuitive Machines (LUNR +0.28%), and Redwire (RDW +4.46%) have compelling cases to deliver big returns over the next decade.

Image source: Getty Images.

1. AST SpaceMobile The only profitable division for SpaceX right now is Starlink, the company's space-based internet and mobile connectivity network. But AST SpaceMobile is a primary competitor in the direct-to-cell satellite business.

The two companies have different approaches. SpaceX currently has a constellation of 9,600 satellites in low-Earth orbit and about 10.2 million customers worldwide. AST SpaceMobile, meanwhile, aims to have a network of 45 larger BlueBird satellites in orbit this year to support its agreements with nearly 60 mobile network operators worldwide. AST announced that BlueBirds 11, 12, and 13, each measuring about 2,400 square feet, are scheduled to launch in August.

"With each successful launch, we move closer to our goal of making space-based cellular broadband accessible wherever people live, work, and travel," AST SpaceMobile president Scott Wisniewski said.

AST reported first-quarter revenue of $14.7 million, up from $718,000 a year ago, with a net loss of $191.01 million, or $0.66 per share. But it's growing quickly -- management projects full-year revenue of $150 million to $200 million. The company ended the quarter with $3.5 billion in cash and cash equivalents.

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2. Intuitive Machines Intuitive Machines is a major NASA contractor and the first commercial company to soft-land a spacecraft on the Moon. The company successfully achieved a soft landing on the lunar surface in 2024 during its IM-1 mission, which carried the Odysseus lander.

The company builds satellites and landers and is involved in NASA's Power and Propulsion Element (PPE), which is being repurposed to support NASA's planned 2028 Mars mission.

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Intuitive is also in a growth spurt, having recently closed its acquisition of spacecraft manufacturer Lanteris Space Systems. That allowed Intuitive to report record quarterly revenue of $186.7 million in the first quarter, nearly three times higher and driven primarily by the Lanteris deal, management said. The company reported a net loss of $52.5 million and $0.25 per share in the quarter but now has a backlog of $1.1 billion, up $852 million from Dec. 31.

"The next phase of the space economy will not be defined only by who reaches new destinations," CEO Steve Altemus said. "It will be defined by who can build the infrastructure, connect it reliably, and operate it at scale. That is what Intuitive Machines is building."

3. Redwire Redwire also played a major role in a recent Moon mission, as its optical imaging and Sun sensor technologies were used in NASA's Artemis II mission, which completed a manned flyby of the Moon this year.

The company is essential to figuring out how to grow food in space -- something that will be important if humanity is to realize the dream of extended spaceflight and, one day, inhabiting the Moon or other planets. It operates a greenhouse on the International Space Station, the first commercially owned facility in space to grow crops.

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The company reported revenue of $97 million in the first quarter, up 57.9% year over year, and projected revenue of $450 million to $500 million for the full year. Redwire had a backlog of $498.1 million at the end of the quarter.

Redwire is also set up for success over the next decade, as it was one of 14 companies selected by the Space Force to compete for contracts under the 10-year Andromeda program that tracks and identifies objects in Earth orbit. The task order's size increased from $1.8 billion to $6 billion, giving Redwire plenty of opportunities to win work against a limited field of competitors.

Redwire (RDW 5.51%) stock got crushed in last month's trading, falling 50.2% across the stretch. Over the same period, the S&P 500 and the Nasdaq Composite fell 1.1% and 2.8%,respectively.

Redwire stock saw huge sell-offs last month after the company announced a major new fundraising move. Its valuation rapidly moved lower amid valuation trends for space stocks connected to the initial public offering (IPO) of Space Exploration Technologies. Defense stocks also generally saw weak trading last month.

Image source: Getty Images.

June was a brutal month for Redwire shareholders On June 9, Redwire published a press release announcing a new at-the-market stock sale program that will allow the company to raise up to $500 million through sales of its common stock. The fundraising move will have a significant dilutive impact for shareholders. With newly created shares entering the market, each existing share comes to represent a smaller piece of the overall whole. The upside is that it will provide the company with substantial operating capital, but investors may have viewed it as a sign that the company viewed its stock as richly valued in addition to dilution-related concerns.

SpaceX's IPO also had a substantial negative impact on Redwire stock. Space stocks have generally been hot over the last year, and the months leading up to SpaceX's IPO on June 12 saw many players in the industry post huge valuation gains -- but that trend reversed last month. While some investors may have been worried that SpaceX finally hitting the market would take some of the hype and excitement away from stocks in the category, others sold positions in other space stocks in order to fund their positions in SpaceX after it went public.

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While the stock got crushed in June, there was actually some good news from the company. On June 4, the company announced that it had won a contract with biotech specialist Astrobiome Space to grow strawberries on the International Space Station and test Astriobiome's soil enhancement product. On June 30, the company announced that it had won a contract with Taiwan Color Optics to provide its Penguin Mk2.5 vertical-take-off-and-landing (VTOL) craft to the Taiwanese Coast Guard.

Here's why Redwire is still falling in July Coming on the heels of last month's precipitous valuation decline, Redwire stock has continued to fall in July. As of this writing, the stock is down roughly 7.5% in the month's trading.

While there hasn't been any fresh bad news for the company, some space-tech stocks have continued to lose ground. With the S&P 500 down roughly 0.2% in the month so far and the Nasdaq Composite down roughly 1.5%, there's also been some broader movement out of speculative growth stocks. Redwire's big sell-offs don't mean that the stock won't be able to recover, but investors clearly aren't thrilled with the at-the-market stock program and the company's perceived near-term return potential compared to other space stocks.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

JACKSONVILLE, Fla.--(BUSINESS WIRE)--Redwire Corporation (NYSE: RDW), a global leader in aerospace and defense technology solutions, today announced that it has been awarded a contract by Taiwan Color Optics, Inc. (TCO), a subsidiary of SemiLux International Ltd., to deliver its Penguin Mk2.5 VTOL Uncrewed Aerial System (UAS) to the Taiwan Coast Guard to support Taiwan’s broader maritime security and defense resilience planning.

Tranche 1 of the program represents a key milestone in Taiwan’s deployment of long-endurance uncrewed systems for maritime surveillance and law enforcement missions. Redwire’s Penguin Mk2.5 VTOL UAS was selected for the program based on its proven long-endurance performance, vertical takeoff and landing capability, and integrated EO/IR payloads for persistent maritime ISR missions.

"Our Penguin Mk2.5 VTOL aircraft is field proven for successful execution of all-weather monitoring and advanced intelligence, surveillance, and reconnaissance operations," said Josh Stinson, Co-President and Chief Growth Officer of Redwire Defense Tech. "Tracking coastline and maritime activities can present unique challenges, and the Penguin is the ideal framework to enhance Taiwan’s coastal defense.”

With the ability to take off and land vertically, the Penguin Mk2.5 VTOL can be rapidly deployed, even in harsh or contested environments. Easily adaptable to meet variety of operations, the platform is well equipped to conduct day and night ISR missions, with the ability to track and target small moving objects.

About Redwire

Redwire Corporation (NYSE:RDW) is an integrated aerospace and defense company focused on advanced technologies. We are building the future of aerospace infrastructure, autonomous systems and multi-domain operations leveraging digital engineering and AI automation. Redwire’s approximately 1,400 employees located throughout North American and Europe are committed to delivering innovative space and airborne platforms transforming the future of multi-domain operations. For more information, please visit RDW.com.

Even though it's still up on the year, the last month has been rough for Redwire (RDW 6.87%). As of June 23, the Redwire stock price has sunk by over 40% due to a mix of company-specific news and external factors.

The aerospace and defense company still has plenty of hurdles to clear before shareholders should expect a rebound. But the good news is one of the issues it's facing isn't a fundamental business flaw, and that issue should be short-lived.

Image source: Getty Images.

Share dilution and worries around cash burn On June 9, news broke that Redwire was selling up to $500 million worth of stock through at-the-market offerings. The company's share price was punished on the day, falling by more than 7%.

The reason was the worry over the dilutive nature of new stock being issued. But if the money raised is used productively and adds value to the company, it can help boost the stock price over the long term. If it turns out to be mostly used to fund short-term needs, however, that won't help the stock price recover.

There's also ongoing concern that the company keeps burning through cash and may need to keep raising capital, creating further dilution. For 2025, it reported a net loss of more than $226 million and ended the year with total liquidity of about $130 million.

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The boost for the entire space industry With all the excitement around the Space Exploration Technologies initial public offering (IPO), it provided more attention to the rest of the space sector. That attention helped broadly boost stock prices across the space sector for a bit, but after the SpaceX IPO, the excitement quickly wore off.

Since SpaceX went public, the Redwire stock price has dropped nearly 14% from June 12 to June 22. That has weighed on the stock price more recently, but it's also not a fundamental business issue, which is good news for shareholders.

The space sector just needs some time to adjust after so much attention and retail investment dollars were directed to SpaceX.

What's next Despite the challenges, Redwire has promise. It expects revenue to jump from roughly $335 million in 2025 to $450 million-$500 million in 2026, and in its 2026 first-quarter earnings results, it reported a record backlog of nearly $500 million.

That said, for Redwire stock to regain its footing and reverse the losses from the last month, it needs a solid 2026 second-quarter earnings report. It needs to show it can stand on its own feet beyond the hype SpaceX brought to the space sector, get spending under control, and turn more of its backlog into revenue.

Shares of Redwire (RDW 4.79%) have surged 80% so far in 2026. The company is benefiting from increased interest in the space sector, especially amid SpaceX's much-awaited initial public offering (IPO) this month. Besides the excitement surrounding the space economy, the Pentagon's recent announcement of a $1.1 billion drone program has been another tailwind for Redwire's stock.

With the stock surging this year, investors may be wondering: Is it too late to buy? Here's what they should know about Redwire and its long-term outlook.

Redwire's space and drone businesses are growing Redwire has historically produced hardware, including sensors, solar arrays, and on-orbit manufacturing, for customers in the space industry. During NASA's recent Artemis II mission, the company's advanced optical imaging and solar sensors were used on the Orion spacecraft. It has also developed the first commercial greenhouse for space, and its facility on the International Space Station supports orbital agricultural research.

Last year, Redwire expanded its capabilities by acquiring Edge Autonomy for $925 million, transforming it from a space infrastructure company into a defense technology business. This acquisition provides it with Edge Autonomy's uncrewed aerial systems (UAS), such as the Penguin, which has been extensively used in Ukraine's war with Russia.

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SpaceX's public debut this month has put a spotlight on the space economy and its vast potential, and Redwire has benefited from these strong tailwinds. The company is viewed as a pick-and-shovel stock for orbital infrastructure. It has also been exploring its ability to supply solar energy generation systems for space-based artificial intelligence data centers to help support the growing global demand for compute.

First-quarter results were boosted by its Edge Automony acquisition In its defense segment, Redwire is already reaping the benefits of this acquisition. In the first quarter, the company saw over $20 million in purchase orders from the Marine Corps. It also saw a $15 million follow-on order from the U.S. Army and a major tactical drone modernization contract with a NATO ally. This strong growth comes as the Pentagon spends $1.1 billion on the Drone Dominance Program.

Image source: Getty Images.

In the first quarter, revenue grew 58% to $97 million, and its contracted backlog surged to $498.1 million, up from $411.2 million at the end of last year. Of this, $359.7 million, or about 72% of its backlog, is attributed to its space segment. Its defense technology segment revenue surged to $44.3 million, driven by the acquisition of Edge Autonomy.

An early stage growth stock Redwire is seeing strong revenue and backlog growth, which bodes well for earnings. The company did lose $76.5 million in the first quarter, and its free cash flow was negative $12.7 million. And it recently announced a $500 million at-the-market equity offering to raise capital, which helps support long-term growth, but the resulting shareholder dilution could keep pressure on the stock price in the near term.

The shares are still up 80% but are also down 48% from their most recent peak from late May. Investors bullish on the space economy and expanded drone spending may find Redwire attractive here. With that in mind, the company is still early in its scaling-up growth phase, and its recent at-the-money equity offering illustrates the risks for investors buying the stock today.

Do not say you were not warned.

Previewing the SpaceX (SPCX 4.95%) IPO earlier this year, I explained what investors should expect in three simple steps.

First: SpaceX IPO fever would make space stocks skyrocket -- and Redwire (RDW +6.37%) roughly doubled in four months. Next: Investors would question whether they wanted to own a second-tier space stock like Redwire at all, when industry leader SpaceX would soon go public. Finally: Investors would rush to sell other space stocks, and put the money in SpaceX instead. We're in this final stage now, and Redwire stock is down 22% since SpaceX's IPO.

Image source: Getty Images.

Redwire goes ice cold Redwire stock dropped another 10.5% through 10:25 a.m. ET today -- while SpaceX stock gained nearly 10%. This brings to mind the old advice "follow the money," except here, the money trail is so obvious you don't really need to do much following.

Investors are pulling money out of Redwire and pouring it into SpaceX stock instead.

Today's Change

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6.37

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0.86

Current Price

$

14.36

What's next for Redwire stock For Redwire investors, this has to feel discouraging -- but here's where the news turns good. According to data from StreetInsider.com, call options to buy Redwire stock at higher prices are currently outrunning put options to sell Redwire stock by a 3.6-to-1 ratio.

This tells me that serious investors are preparing for a serious rally in Redwire stock.

Are they right? That's hard to say. Deeply unprofitable and burning cash, Redwire isn't expected to earn even an EBITDA profit before 2027, and GAAP profits are even farther away. Still, when I look at unprofitable SpaceX stock that costs 130 times sales, versus Redwire stock trading for just six times sales, I know which one I'd pick.

Redwire stock is the better value play here.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The race to commercialize Earth's orbit has shifted from speculative science fiction to a growing industrial reality. Investors now face a choice between Redwire (RDW +6.37%) and Rocket Lab USA (RKLB +3.10%) for their space exposure.

While both companies operate within the same broader sector, they offer different entry points into the space economy. Redwire focuses on the hardware and infrastructure that keep satellites running, while Rocket Lab provides the vehicles to get them there, along with its own satellite platforms. Comparing these two requires a deep dive into their growth rates, financial stability, and market positions in the 2026 landscape.

The case for RedwireRedwire operates as a specialized provider of space infrastructure, offering solar arrays, avionics, and autonomous systems for a variety of missions. The company serves a diverse mix of civil, commercial, and national security customers who require reliable components for complex spacecraft. Its technology is increasingly vital among defense stocks as governments seek to modernize their satellite constellations. However, customer concentration adds a layer of risk to the business, as its two largest customers accounted for roughly 19% and 20% of total revenue, respectively, in late 2025.

In fiscal 2025, revenue reached $335.4 million, a 10% increase compared to the prior year. Despite this growth, the company reported a net loss of approximately $226 million for the period.

The widening loss compared to previous years suggests that while the top line is expanding, the company is still navigating significant costs associated with its manufacturing and development efforts.

As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 0.1x. This ratio, which compares total debt to shareholder equity, suggests a relatively low reliance on borrowed funds. The current ratio, a measure of a company's ability to pay short-term obligations, was approximately 1.6x. Free cash flow, which is cash flow from operations minus capital expenditures, was negative $190.8 million. This figure indicates that the business is currently consuming more cash than it generates from its core activities to fund its ongoing operations.

The case for Rocket LabRocket Lab has established itself as a leading end-to-end space company, providing both reliable launch services and sophisticated satellite manufacturing. The company has successfully scaled its Electron launch vehicle and is developing the larger Neutron rocket to compete for heavier payloads.

Its customer base is quite concentrated, with the top five customers accounting for nearly 49% of revenue in 2025. This means that the loss of a single major contract could significantly impact its financial performance and backlog stability.

For fiscal 2025, revenue reached nearly $602 million, representing an impressive 38% year-over-year growth rate. The company recorded a net loss of approximately $198 million, an improvement in net margin compared to previous years. This trend suggests the business is achieving greater scale as it ramps up production of its satellite components and maintains a steady launch cadence.

Based on the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.1x, indicating that total debt is quite low relative to shareholder equity. The current ratio stands at a healthy 4.1x, suggesting the company has ample liquidity to meet its short-term liabilities.

However, free cash flow was negative $321.8 million for the year, as the company continues to invest heavily in developing its new Neutron rocket. Investors should note that negative free cash flow is common for capital-intensive companies in the growth phase of the space industry.

Risk profile comparisonRedwire faces significant risks due to its reliance on a small number of large customers and on government contracts. Since a significant portion of its business is tied to U.S. government spending, budget uncertainty or contract terminations could harm its revenue streams.

The company also faces intense competition from established defense contractors and new market entrants. Furthermore, if the company fails to protect its intellectual property, it could lose its competitive edge or face costly litigation that disrupts its operations.

Rocket Lab also faces risks. It deals with the inherent uncertainty of rocket science, where any launch failure or manufacturing defect can lead to reputational damage and financial loss. For instance, technical issues with its Neutron development or future Electron launches could delay missions and impact revenue.

The company also competes in a global market against well-funded giants like SpaceX and Northrop Grumman. Additionally, its reliance on single-source vendors for certain composites and propulsion components creates a supply chain risk that could halt production if those vendors fail to deliver.

Valuation comparisonRedwire appears much more affordable on a revenue basis, while Rocket Lab carries a significant premium reflecting its faster growth and larger market ambitions.

MetricRedwireRocket Lab USASector BenchmarkForward P/En/a163824.0x29.8xP/S ratio6.8x98.5xn/aSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Both space stocks command rich valuations and have similarly mixed financials, particularly in profitability. Both are also demonstrating great expansion potential as investment pours into the limitless frontiers of space.

However, Rocket Lab is the one I would bet on. While Redwire is positioning for high-margin growth by providing essential infrastructure for future space missions, Rocket Lab is growing faster at greater scale, indicating the size of its addressable market.

On a trailing-12-month basis, Redwire’s revenue totaled $371 million, up 34% year over year. Rocket Lab generated $680 million in revenue, up 46%.

Redwire is focused on space infrastructure, but Rocket Lab is building a complete end-to-end space company. It is pursuing opportunities in satellite services and spacecraft development. This will allow it to operate lucrative services such as Earth observation, navigation, and data analytics.

By operating across spacecraft and downstream services, Rocket Lab’s vertically integrated business strategy will likely create more opportunities to grow and deliver long-term returns to investors. This explains why the stock has outperformed over the past year and why investors are placing a much higher valuation on the stock in 2026.

So I guess I was both right and right about the SpaceX (SPCX +19.22%) IPO.

Right first, because I predicted SpaceX IPO fever could drive space stocks higher. Indeed, shares of space infrastructure company Redwire (RDW 11.76%) have roughly doubled over the past four months.

That's the good news. I was also right, unfortunately, about what would happen on the IPO date. And this, in a nutshell, is why Redwire stock fell 7% through 11:15 a.m. ET today.

Image source: Getty Images.

Three scenarios for SpaceX and space stocks Four months ago, I ran down three theories for how the SpaceX IPO might play out, both for SpaceX itself and for the other space stocks in the nascent space industry. Briefly, these scenarios went like this:

Option 1: SpaceX IPO fever could make space stocks more popular, driving up their stock prices. Option 2: SpaceX could make space stocks not named SpaceX less popular, if they suffered by comparison to SpaceX, which is so much bigger and more profitable than SpaceX's competitors. Or Option 3: Investors wanting to buy SpaceX stock might sell shares of other space stocks to raise cash to buy SpaceX instead.

Today's Change

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15.08

What's next for Redwire stock The fact that Redwire stock went up so much over the past four months means I was right about Option 1. The fact that Redwire stock is nonetheless selling off today -- the same day investors are presumably preparing to pay for their new SpaceX IPO shares -- strongly suggests I was right about Option 3 as well.

And Option 2? This remains to be seen. SpaceX's IPO prospectus made clear SpaceX isn't nearly as profitable as we once believed -- indeed, that it's losing money. Bigger isn't necessarily better, and tiny Redwire could still be a winner if it turns profitable before SpaceX does.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Key Takeaways Leveraged space and AI-linked ETFs dominated May's top-performing ETF list. Cooling oil prices and strong earnings boosted risk appetite across Wall Street. Sticky inflation and hawkish Fed signals failed to derail the tech-led rally. Wall Street had a spectacular May, with the S&P 500 gaining about 4.9%, the Dow Jones adding about 2.1% and the Nasdaq-100 surging about 10% over the past month (as of May 28, 2026) on U.S.-Iran truce hopes (read: 5 ETF Areas Trading at a 52-Week High).

Oil Plunges in May Oil dropped in the month as the United States and Iran tentatively agreed to extend the ceasefire by 60 days, with Brent set for the biggest monthly drop since 2020 on optimism that flows through the Strait of Hormuz may resume, per Bloomberg, as quoted on Yahoo Finance.

Upbeat Earnings Season The month was full of earnings releases. The Q1 earnings season has come to an end for nine of the 16 Zacks sectors, with results from 462 S&P 500, or 92.4% of the index’s membership, already out.

Total Q1 earnings for the 462 S&P 500 companies that reported through May 20, 2026 results are up +21.1% from the same period last year on +10.4% higher revenues, with 79.9% beating EPS estimates and 78.6% beating revenue estimates. This is a better showing from these companies relative to other recent periods.

Tech & Energy Sectors Flex Muscle The Tech sector has been enjoying positive estimate revisions for more than a year now, so the sector’s positive revisions trend is basically more of the same. The Energy sector’s improved earnings outlook is a direct result of the Iran war, as is the upgraded earnings outlook for parts of the Basic Materials sector, particularly the Chemicals industry.

Inflation Heats Up The Federal Reserve’s preferred inflation gauge surged to a three-year high in April. The Personal Consumption Expenditures Index rose 3.8% in April as the conflict in the Middle East pushed oil prices higher.

That was in line with expectations and up from 3.5% in March. Excluding volatile food and energy prices, the so-called “core” PCE index was up 3.3%, also matching expectations and up a tenth from 3.2% in March, per a Yahoo Finance article. Still, that’s the highest core reading in two and a half years.

New York Fed President and FOMC Vice Chair John Williams said Thursday that inflation is likely to remain elevated in the coming months, with headline inflation potentially nearing 4% and core inflation staying above 3%.

While Williams expects headline inflation to peak within the next few months, he maintained that the current monetary policy is “in a good place” to address risks stemming from the conflict with Iran.

Goldman Sachs COO John Waldron echoed those concerns, calling inflation the biggest risk facing markets, as quoted on the same Yahoo Finance article.

No Fed Rate Cut in 2026?Most policymakers continue to support holding interest rates steady for now, though a growing number are unwilling to rule out additional rate hikes if inflation remains high.

Fed Governor Lisa Cook said that she is “prepared to raise rates” if inflation fails to moderate in a “timely manner,” as quoted on the same Yahoo Finance article.

U.S. Q1 GDP Growth Revised Lower Amid Slow Consumer Spending The U.S. economy grew at an annualized rate of 1.6% in the first quarter of 2026, lower than the initial estimate of 2.0%, reflecting weaker consumer spending and softer business investment.

ETFs in Focus Against this backdrop, below we highlight a few winning leveraged ETFs of the month of May.

T-REX 2X Long RDW Daily Target ETF (RDWU - Free Report) – Up 515.3%

The T-REX 2X Long RDW Daily Target ETF seeks daily investment results, before fees and expenses, of 200% of the daily performance of the Redwire Corporation. The expense ratio of the fund is 1.50%.

Redwire Corp. (RDW - Free Report) shares gained about 201% over the past month, thanks to strong investor optimism surrounding the space and defense technology sector, growing demand for satellite infrastructure, and continued momentum in government and commercial space programs.

Tradr 2X Long ALAB Daily ETF (LABX - Free Report) – Up 190.0%

The Tradr 2X Long ALAB Daily ETF seeks daily investment results, before fees and expenses, that correspond to two times the daily performance of the common shares of Astera Labs Inc. The expense ratio of the fund is 1.50%.

ALAB stock rose on AI infrastructure demand and continued optimism for high-speed connectivity and semiconductor-related technologies.

Defiance Daily Target 2x Long KEEL ETF (KEEX - Free Report) – Up 286.7%

The Defiance Daily Target 2X Long KEEL ETF seeks daily investment results, before fees and expenses, of two times the daily percentage change in the share price of Keel Infrastructure Corp. The expense ratio of the fund is 1.31%.

Keel Infrastructure stock rose on growing optimism around its shift toward AI and high-performance computing (HPC) infrastructure, and expectations for future data-center leasing deals. Investors have also responded positively to the company’s expanding AI-focused power infrastructure pipeline and improving liquidity position.

Direxion Daily MU Bull 2X ETF (MUU - Free Report) – Up 188.7%

The Direxion Daily MU Bull 2X ETF seeks daily investment results, before fees and expenses, of 200% of the performance of the common ETF of Micron Technology, Inc. The expense ratio of the fund is 1.01%.

In a historic milestone on May 26, 2026, Micron Technology’s (MU) market capitalization crossed the $1 trillion threshold, driven by an extraordinary 19.3% single-day stock rally that lifted shares to a close of $895.88. This dramatic rally places the memory-chip giant into an elite tier of a few tech titans (read: Tech ETFs to Buy as Micron Technology Joins the $1 Trillion Club).

Defiance Daily Target 2X Long RKLB ETF (RKLX - Free Report) – Up 217.3%

The Defiance Daily Target 2X Long RKLB ETF seeks daily leveraged investment results of two times the daily percentage change in the share price of Rocket Lab USA, Inc. The expense ratio of the fund is 1.31%.

RKLB shares soared due to strong investor enthusiasm around the booming space sector, upbeat earnings, and growing optimism tied to a potential SpaceX IPO.

June 2, 2026 Monday's MarketsS&P 500
7,600 (+0.26%)Nasdaq
27,087 (+0.42%)Dow
51,079 (+0.09%)Bitcoin
$71,444 (-2.70%)

Source: Image created by Jester AI.

1. Alphabet Launches Historic Stock Sale Alphabet (GOOG +1.19%) confirmed it will sell $80 billion in stock, including a $10 billion sum sold to Berkshire Hathaway (BRKB +0.23%), as it seeks more capital to fund AI compute infrastructure to meet "unprecedented customer demand." Berkshire stock was little changed ahead of the opening bell, while Alphabet fell around 2.5%.

"Be it power, land, supply chain constraints, how do you ramp up to meet this extraordinary demand for this moment?": CEO Sundar Pichai recently commented compute capacity was what keeps Alphabet execs up at night, with scaling up investments seen as a key way to support the growth opportunity ahead. Berkshire's current Alphabet holding worth around $20 billion: The team at Berkshire have been building a stake in the company since Q3 last year. The additional $10 billion is likely to take it to the third largest portfolio holding, behind Apple (AAPL +1.36%) and American Express (AXP +1.78%). 2. Results Roundup: CRDO Disappoints as HPE Wins Big As highlighted in yesterday's Breakfast News, Ulta Beauty (ULTA +1.20%) and Palo Alto (PANW +6.11%) release earnings after the closing bell today. Ulta has previously been recommended by Team Hidden Gems, while both are recommended by Team Rule Breakers.

Another Team RB recommendation: Hewlett Packard Enterprise (HPE +2.88%) rocketed over 25% in pre-market trading thanks to quarterly results beating expectations due to Cloud and AI revenue increasing, with management now expecting 29%-33% revenue growth for the full year. Revenue jumps 157% but slowing growth forecast: Credo Technology (CRDO +11.38%) initially fell over 12% in early trade, before recovering most of those losses, despite posting record revenue and profitability as investors noted a slowing pace of growth for the coming quarter and a concern over gross profit margin compression. 3. Space Stocks Jitter Ahead of SpaceX IPO Space stocks including Rocket Lab (RKLB +9.42%) and Redwire (RDW +14.90%) fell 14.7% and 15.83% yesterday respectively, as the sector takes a pause from a record-breaking rally ahead of the SpaceX IPO.

Higher volatility prompts caution: General excitement has been a factor in driving related stocks higher, with Redwire up over 130% in the past month. The short-term move suggests some investors are now looking to reduce exposure ahead of the SpaceX IPO, given the potential for further volatility. "Rocket Lab needs to be viewed as a long-term growth story": Fool contributing analyst Lou Whiteman said last month that although the latest company results don't justify such a high valuation, "there is nothing in the report to suggest Rocket Lab isn't on its way toward growing into the company the market expects in the years to come." The stock is beating the S&P 500 by 204% since the Stock Advisor recommendation by Team HG in July 2025. 4. Your Take Next week's SpaceX IPO is the investment topic du jour, and we continue to bring you takes from Fools on both Team Hidden Gems and Team Rule Breakers.

Lou Whiteman on Team HG yesterday noted, "I still expect a successful IPO ... SpaceX's path to the public markets is as complicated as its plan to reach Mars. It's not set up to provide the clarity market watchers love to see. Don't take that uncertainty as a sign the IPO is in trouble."

Meanwhile, Team RB's Jim Mueller recently said, "IPOs are designed to get people excited and eager to buy. But the harsh reality is that the vast majority of them end up losing money for investors over the following three to five years. I'd rather remember that and go with the odds. Especially for a company that burns cash and has some really crazy assumptions built into its valuation."

On a scale of 1-10, how excited are you about the upcoming SpaceX IPO? (1 = not interested at all, 10 = can't wait to buy). What excites you or what concerns you about SpaceX as an investment?

Debate with friends and family, or become a member to hear what your fellow Fools are saying!

This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. American Express is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Alphabet, American Express, Apple, Berkshire Hathaway, Hewlett Packard Enterprise, Redwire, Rocket Lab, and Ulta Beauty. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

Key Takeaways RDW jumped 235.2% in six months, beating the aerospace-defense industry and aerospace sector.Redwire faces profit pressure from higher operating expenses and big investments in growth initiatives.RDW delivered its MANUS lunar robotic arm prototype in May 2026 as space and defense demand grows. Redwire Corporation (RDW - Free Report) stock has gained 235.2% in the past six months, outperforming both the Zacks Aerospace-Defense industry’s decline of 5.3% and the broader Zacks Aerospace sector’s gain of 0.8%. It also came below the S&P 500’s return of 10.9% in the same time frame.

Image Source: Zacks Investment Research

Other industry players, such as Lockheed Martin (LMT - Free Report) and The Boeing Company (BA - Free Report) , have also delivered a similar stellar performance in the past year. Shares of LMT and BA have risen 14.5% and 7.9%, respectively, in the said period.

RDW’s recent gains may draw investor attention. However, before investing, it is important to evaluate whether the company’s fundamentals are strong enough to support sustained long-term growth or if the recent rally may be temporary. A closer look at RDW’s growth stability can help investors make a more informed decision.

Headwinds for RDWRedwire continues to face profitability challenges as higher operating expenses and ongoing investments in growth initiatives put pressure on near-term earnings. While these investments are important for expanding the company's capabilities and market presence, they may limit profitability in the short run.

The company also operates in a highly competitive and capital-intensive industry, where rising development and manufacturing costs can affect margins and cash flow. Redwire’s efforts to grow its space infrastructure and mission-related businesses require substantial investment, which may continue to weigh on financial performance over the near term.

In addition, supply-chain disruptions and labor shortages across the aerospace and space industries remain potential challenges. These issues could result in production delays and increased operating costs for Redwire. Larger aerospace and defense companies such as Lockheed Martin and Boeing also face similar supply-chain and workforce pressures, highlighting broader industry-wide challenges. Redwire is further exposed to risks related to government contract funding, changing budget priorities and possible delays in mission execution, which could impact its growth and profitability.

Tailwinds for RDWRedwire is benefiting from increasing demand across the space and defense sectors, driven by higher investments in lunar exploration, space infrastructure and advanced military technologies. Continued support from government organizations, such as NASA, the European Space Agency and the U.S. Army, is creating new growth opportunities for the company.

In May 2026, Redwire reached an important milestone in its space business with the successful development, testing and delivery of its MANUS lunar robotic arm prototype. The system is designed to assist with payload handling and unloading during future lunar missions. The successful tests demonstrated the arm’s strong performance and reliability, reinforcing Redwire’s position in lunar exploration technology.

With continued momentum in both its space and defense businesses, Redwire is well-placed to capitalize on growing opportunities in these expanding markets.

Estimates for RDW’s Sales and EarningsThe Zacks Consensus Estimate for RDW’s 2026 sales implies year-over-year growth of 41%. The consensus estimate for its 2026 earnings indicates a year-over-year increase of 57.3%.

Image Source: Zacks Investment Research

The downward revision in its 2026 and 2027 earnings over the past 60 days suggests investors’ decreasing confidence in this stock’s earnings generation capabilities.

Image Source: Zacks Investment Research

RDW’s ValuationIn terms of valuation, RDW’s forward 12-month price-to-sales (P/S) is 7.71X, a premium to the industry average of 2.51X. This suggests that investors will be paying a higher price than the company's expected earnings growth compared with its industry average.

Image Source: Zacks Investment Research

Lockheed Martin and Boeing are trading at a discount in comparison with RDW. LMT’s forward 12-month P/S is 1.47X, while BA’s forward 12-month P/S is 1.67X.

What Should an Investor Do Now?Redwire is benefiting from strong revenue growth and growing participation in both commercial and government-supported space programs. However, higher operating expenses and execution-related challenges continue to pose risks to its growth outlook. The stock’s valuation also remains higher than the industry average, which may limit its near-term upside potential.

Furthermore, analysts have lowered their earnings estimates for 2026 and 2027 over the past two months, indicating a more cautious outlook for the company’s future profitability. Given these challenges, it is advisable to avoid the stock at present.

RDW currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Dow Jones Industrial Average (DJI) is surging to record highs, up over 800 points and heading for its largest single-day percentage gain since April as investors rotate out of tech and into old economy stocks. Broadcom's (AVGO) post-earnings selloff sparked the chip sector woes, with the Nasdaq Composite (IXIC) firmly lower in response. Meanwhile, the S&P 500 Index (SPX) is trading flat after yesterday snapping a nine-day win streak. 

Continue reading for more on today's market, including:

Software stock plummets despite earnings beat.  UnitedHealth Group stock upgraded ahead of earnings.  Plus, options traders target VEEV; RDW awarded agricultural space contract; and WOOF slides after mixed results. 

Veeva Systems Inc (NYSE:VEEV) is seeing unusual options activity today. Options traders are targeting the cloud computing name at six times the intraday average volume after strong first-quarter earnings and revenue results, with 4,978 calls and 2,377 puts exchanged so far. The June 220 and 180 calls are the most popular. VEEV has struggled in 2026, sinking 20% so far, last seen down 0.2% at $178.25 despite its upbeat report.

One of the top performers on the New York Stock Exchange (NYSE), Redwire Corp (NYSE:RDW) was last seen up 19.3% at $22.18, after the company was awarded a contract from biotech name Astrobiome Space to grow strawberries and test Astrobiome Space's proprietary soil enhancement product on board the International Space Station (ISS). Rebounding from a four-day losing streak that came after a 52-week high, the shares are up 181.8% year to date. 

Petco Health and Wellness Company Inc (NASDAQ:WOOF) is down 16.9% to trade at $2.53, pulling back to familiar support at the $2.50 level after mixed first-quarter results. WOOF is now down 9.8% since the start of the year. 

The announcement sent Redwire shares nearly 16% higher as investors welcomed a new commercial space agriculture milestone.

The gain followed a sharp pullback earlier this week, when Redwire shares fell 15% after Jefferies downgraded the stock to Hold from Buy on valuation concerns, despite raising its price forecast to $24.

Short Squeeze Likely Added FuelThursday’s move may have been amplified by short covering. Approximately 17.96% of Redwire’s public float was sold short, creating conditions for a potential short squeeze as bullish traders piled into the stock following the contract announcement.

First Strawberries To Be Grown In SpaceThe mission will test Astrobiome Space’s microbial biostimulant while growing wild strawberries in orbit, marking the first cultivation of the fruit in space. Astrobiome Space expects the product to improve crop resilience and nutrient density.

Redwire said its Greenhouse platform is designed to support long-duration space missions and advance commercial space agriculture. Astrobiome Space will begin Earth-based testing this month ahead of the ISS flight.

“This contract with Astrobiome Space marks an exciting step forward in advancing critical technology for sustainable life-support systems beyond Earth,” said Marc Dielissen, Executive Vice-President of Redwire Europe.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $16.80. Recent analyst moves include:

Jefferies: Downgraded to Hold (Raises forecast to $24.00) (June 1) Canaccord Genuity: Buy (Raises forecast to $14.00) (May 11) Truist Securities: Upgraded to Buy (Raises forecast to $15.00) (March 9) Redwire Technical AnalysisRDW stock remains well above its key trend lines.

The stock trades about 32% above its 20-day simple moving average of $16.25. It also trades roughly 126% above its 200-day simple moving average of $9.47.

That shows how strong the longer-term rally has been. The bullish setup also remains intact. The 20-day SMA is above the 50-day SMA. A golden cross in April also keeps the broader trend pointed higher.

Momentum still looks positive. The MACD is above its signal line. The histogram is also positive. That suggests buyers still have control after the recent pullback.

Still, the stock looks extended. When a stock trades this far above its moving averages, any loss of buying pressure can lead to a sharp pullback.

Key Resistance: $26.64. This is the 52-week high from May. Key Support: $16.25. This is the 20-day SMA and the nearest major trend support. RDW Stock Price Activity: Redwire shares were up 15.84% at $21.57 at the time of publication on Thursday, according to Benzinga Pro data.

Image via Shutterstock

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Redwire Corp (NYSE:RDW) shares are trading lower on Tuesday after the company announced a new at-the-market equity offering.

Redwire stock is feeling bearish pressure. Why is RDW stock falling? Redwire launched an at-the-market equity offering on Tuesday, allowing the company to sell up to $500 million in common stock over time. The offering is structured as a continuous ATM, meaning shares can be sold incrementally rather than in a single raise, giving Redwire flexibility on timing and size.

Redwire plans to use the net proceeds for general corporate purposes including working capital, debt repayment or refinancing, strategic acquisitions or investments and R&D to accelerate product development.

Redwire had total liquidity of $175.2 million as of March 31, including $144.5 million in cash and cash equivalents. The company also announced an equity distribution agreement to offer and sell up to $350 million of common stock from time to time when it reported earnings last month.

Technicals Show Mixed Signals Despite Bullish TrendRedwire is currently positioned above its 50-day, 100-day, and 200-day simple moving averages, indicating a strong bullish trend. The 20-day SMA is slightly below the current price, suggesting a potential for upward momentum if the stock can maintain this positioning.

The RSI is at 59.14, which is in neutral territory, indicating that the stock is neither overbought nor oversold at this time. This level suggests that there is still room for upward movement before reaching overbought conditions.

MACD is currently below its signal line, indicating bearish pressure in the short term. Traders should be cautious as this could signal a potential pullback or consolidation phase before any further upward movement.

Key support is at 14.50 and resistance is at 17.50, which traders should monitor closely. A break below support could signal a trend reversal, while a move above resistance may confirm continued bullish momentum.

The golden cross in May, when the 50-day SMA crossed above the 200-day SMA, reinforces the bullish trend for Redwire. This crossover is a strong signal for traders looking for longer-term buying opportunities.

Over the past 12 months, Redwire has gained 5.03%, reflecting a positive longer-term trend despite recent volatility. This performance indicates that the stock has been able to maintain upward momentum over a significant period, which could attract more investors looking for stability.

Redwire Shares RetreatRDW Price Action: Redwire shares were down 8.67% at $16.96 at the time of publication on Tuesday, according to Benzinga Pro.

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Stocks are lower across the board, reversing this morning's gains as the chip rally fizzles. The Nasdaq Composite Index (IXIC) is down a whopping 504 points, while the S&P 500 Index (SPX) and Dow Jones Industrial Average (DJI) sit firmly in the red as well. Meanwhile, West Texas Intermediate (WTI) crude is down 4.5%, after U.S. Energy Secretary Chris Wright said tanker traffic through the Strait of Hormuz is "rising very meaningfully," as President Trump continues negotiations with Iran. 

Continue reading for more on today's market, including:

Biopharma stock soars on $10.6 billion buyout.  Vail Resorts stock hit with bear notes after earnings miss.  Plus, options bulls eye CROX; ODC hits record highs; and RDW slides on equity offering. 

Call traders are targeting Crocs Inc (NASDAQ:CROX) today, after an upgrade from Baird to "outperform" from "neutral," with a price-target hike to $150 from $115. CROX has seen nine times its intraday average in call volume, with the most activity at the June 140 call, where new positions are being sold-to-open. The equity was last seen up 6% at $127.92, earlier tapping its highest mark since October 2024.

Pacing the top of the New York Stock Exchange's (NYSE) this afternoon is Oil-Dri Corporation of America (NYSE:ODC), up 12.9% to trade at record highs near $95, after the company's record fiscal third-quarter revenue and earnings growth. Year to date, the equity is up 93.2%. 

Aerospace and defense stock Redwire Corp (NYSE:RDW) is down 11.4% at $16.44, after the company entered into an equity distribution agreement allowing it to sell up to $500 million in common stock offerings. Though sliding further from its late-May 52-week peak, the shares are still up 106% year to date. 

Issued on behalf of Starfighters Space, Inc.

For years the most exciting companies in space stayed stubbornly private. That era is ending in a single week — and the way capital reaches the sector may never look the same.

Baystreet.ca News Commentary 

CAPE CANAVERAL, /PRNewswire/ -- There are two ways a company can find its way into the portfolios of the world's largest investors. The first is the one everyone talks about: a story so compelling that analysts champion it, fund managers buy it, and momentum builds. The second is quieter, more mechanical, and in many ways more powerful — a company simply grows large enough to cross an objective threshold, and the machinery of global index investing pulls it in automatically. This week, the commercial space sector is experiencing both at once, and the combination is turning what was once a niche, venture-funded frontier into a mainstream, publicly investable asset class.

The mechanical signal came when Starfighters Space, Inc. (NYSE: FJET) announced it had been added to the broad-market Russell 3000® Index, effective when U.S. markets open on June 29, 2026, as part of the first 2026 Russell reconstitution. The narrative signal — louder, and arriving the very same week — is the long-awaited public debut of SpaceX, the company that more than any other came to define the modern space age while remaining tantalizingly out of public reach. Taken together, they mark something larger than any single stock: the space economy is being wired directly into the plumbing of public markets.

Why Index Inclusion Is More Than a Trophy

Most catalysts that move a young stock depend on persuasion. Index inclusion does not. Membership in the Russell indexes is determined primarily through objective market-capitalization rankings and style attributes — not a committee weighing a company's prospects. A company is either large enough on the measurement date, April 30 this year, or it is not. Clearing that screen has compounding consequences: inclusion in the Russell 3000® brings automatic membership in either the large-cap Russell 1000® or the small-cap Russell 2000®, plus the relevant style indexes, and with it the attention of the index funds and benchmarked managers that track them.

The scale of that gravitational field is hard to overstate. According to data as of mid-2025, roughly $12.2 trillion in assets are benchmarked against the Russell U.S. indexes. And this year's reconstitution was unusually expansive: FTSE Russell reported the total market capitalization of the Russell 3000® rose about 29%, from $58.4 trillion to $75.6 trillion, as of the April 30 rank day. When the index expands and is recut, room opens at the threshold for companies that have grown into the size band — and capital markets have been notably receptive to space and defense names. For Starfighters, a company that completed its IPO only in December 2025, arriving on one of the world's most-followed benchmarks inside its first seven months as a public company is an unusually fast trip from the listing bell to the index card.

CONTINUED … Learn more about Starfighters Space, Inc. at: https://usanewsgroup.com/fjet-profile/

The Capstone: SpaceX Comes to Market

If Russell inclusion is the on-ramp, the SpaceX IPO is the eighteen-wheeler about to merge onto the highway. After filing its public S-1 prospectus in May 2026 and applying to list on Nasdaq under the symbol SPCX, the company widely regarded as the most important private space enterprise in history is, as reported, on the cusp of its market debut later this week, with pricing expected imminently. The figures attached to it are staggering: reporting has pointed to a share price around $135 and a valuation measured in the trillions of dollars, with a raise that, if achieved at the high end, would rank among the largest initial public offerings ever completed. (These figures are as reported and remain subject to final pricing.)

The importance for the sector is not really about one stock, however large. It is about what a successful mega-listing does to the category. It gives public investors a direct, liquid way to own the orbital economy's flagship name; it forces a market-clearing price discovery on space assets that until now traded only in private rounds; and it draws a wave of institutional attention toward every adjacent company that offers exposure to the same theme. A rising tide of capital looking for space exposure does not stop at a single ticker — it spreads across the names that make up the rest of the ecosystem.

The Ecosystem Riding the Wave

To understand why this is a sector story and not a single-company one, it helps to look at the range of public companies now competing for that institutional attention. Each offers a different lens on where capital is flowing across the modern space landscape.

Rocket Lab Corporation (NASDAQ: RKLB) has become the closest thing the public markets have to a SpaceX analogue, and its run reflects it: the stock reached fresh all-time highs around the mid-$140s in 2026, and it has expanded aggressively, including a spacecraft-robotics acquisition that pushes it further toward end-to-end mission capability and even Mars ambitions. Rocket Lab shows how hungry public investors are for a scaled, vertically integrated launch-and-space-systems story they can actually buy.

Intuitive Machines, Inc. (NASDAQ: LUNR) represents the lunar-economy thesis, building landers and services aimed at the renewed global push toward the Moon. As one of the names most associated with commercial lunar delivery, it illustrates how the investable space sector now reaches well beyond Earth orbit — and how richly the market is willing to value companies positioned for NASA-era Moon programs.

Redwire Corporation (NYSE: RDW) anchors the in-space infrastructure and manufacturing layer, supplying components, structures, and capabilities used across satellites and missions. Its strong 2026 performance underscores investor appetite for the "picks-and-shovels" providers that supply the broader build-out rather than any single launch.

Velo3D, Inc. (NASDAQ: VELO) rounds out the group from the supply-chain side, providing metal additive-manufacturing systems used to build mission-critical components for space, aviation, and defense programs. After reporting first-quarter 2026 revenue up 48% year-over-year and reaching a positive gross-margin inflection, Velo3D illustrates how the orbital build-out lifts not just launch and satellite names but the specialized manufacturers that supply the hardware behind them. These companies are referenced to illustrate the breadth of the sector, not to imply any partnership, endorsement, affiliation, or comparable financial performance; they span vastly different sizes and stages.

Where Starfighters Fits

Within that landscape, Starfighters Space occupies a genuinely differentiated niche. Rather than building rockets or satellites, the company operates what it describes as the world's only flight-ready MACH 2+ supersonic aircraft fleet, flying from NASA's Kennedy Space Center. The concept behind air-launch is elegant: releasing a vehicle from an aircraft already moving fast and flying high means the launch system inherits altitude and velocity it would otherwise have to generate itself, and because the platform is an aircraft rather than a fixed pad, it carries the promise of runway-based responsiveness and reusable hardware. "We believe our inclusion in the Russell 3000® Index represents an important milestone in Starfighters Space's evolution as a publicly traded space company," said CEO Tim Franta, framing the event as a reflection of growing awareness of the company's differentiated platform.

It is worth being clear-eyed: Starfighters is an early-stage, small-cap company whose shares have been volatile, and index inclusion changes visibility, not fundamentals. The real test ahead is commercial execution, not index mechanics. But the timing places the company inside one of the most powerful currents in the market right now — a sector being institutionalized in real time.

A Week That Resets the Map

Step back and the picture is striking. In a single week, the broadest benchmark in U.S. equities is formally ingesting space companies, and the sector's defining private giant is stepping onto the public stage. For a decade, owning the frontier of space meant access to private rounds most investors could never reach. That wall is coming down. The question for the rest of the year is no longer whether the space economy is investable — it is which companies, across which layers of the ecosystem, capture the attention now flooding in. The on-ramp is open, and the traffic is just beginning to build.

CONTINUED … Learn more about Starfighters Space, Inc. at: https://usanewsgroup.com/fjet-profile/

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SOURCES:

[1] Starfighters Space, Inc. — "Starfighters Space (NYSE: FJET) Added to Membership of Russell 3000® Index" (Business Wire, June 3, 2026; index inclusion effective June 29, CEO Tim Franta quote, company profile): https://finance.yahoo.com/markets/stocks/articles/starfighters-space-nyse-fjet-added-100000658.html

[2] FTSE Russell / Investing.com — Russell U.S. indexes 2026 reconstitution detail ($12.2T benchmarked; Russell 3000 total market cap up 29% to $75.6T; rank day April 30): https://www.investing.com/news/company-news/starfighters-space-added-to-russell-3000-index-effective-june-29-93CH-4723661

[3] Capital.com — SpaceX IPO overview (public S-1 May 20, 2026; Nasdaq application as SPCX; reported ~$135/share, pricing June 11, debut June 12; Starlink ~58% of revenue; figures as reported and subject to final pricing): https://capital.com/en-int/learn/ipo/spacex-ipo

[4] Bloomberg — "How SpaceX's Dream of a Record-Breaking IPO Stacks Up" (raise reported up to ~$75B; valuation in the trillions; would rank among largest IPOs in history): https://www.bloomberg.com/graphics/2026-spacex-ipo-stock-market-nasdaq-listings/

[5] Stocktwits — space-sector trading coverage around the SpaceX listing (peer names RKLB, LUNR, RDW, VELO and sector sentiment): https://stocktwits.com/news-articles/markets/equity/rklb-lunr-rdw-rise-musk-ai-satellite-vision/cZ0Ud6JR7bl

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This communication is being distributed by Baystreet.ca on behalf of Market IQ Media Group, Inc. ("MIQ"), as a digital media distribution and not as a paid advertisement in the traditional sense. MIQ has been paid a fee for Starfighters Space, Inc. advertising and digital media by Creative Direct Marketing Group ("CDMG"). USA News Group distributes this communication on behalf of MIQ regardless of the brand under which it appears. MIQ does not own any shares of Starfighters Space, Inc. and reserves the right to buy and sell shares of Starfighters Space, Inc. at any time without any further notice. There may be 3rd parties who may have shares of Starfighters Space, Inc. and may liquidate their shares which could have a negative effect on the price of the stock. All material disseminated by MIQ on behalf of Starfighters Space, Inc. has been reviewed and approved by CDMG; this is a digital media distribution.

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Redwire (RDW +14.90%) is turning into a broader aerospace and defense technology story, with exposure to drones, autonomous systems, space infrastructure, and secure communications. The upside is compelling, but the key question is whether management can turn backlog and defense expansion into sustainable earnings.

*Stock prices used were the market prices of June 2, 2026. The video was published on June 10, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.