Viasat, Inc. and Iridium Communications, Inc. were the only space stocks to see gains in July as the sector faced a general selloff.
Viasat, Inc. and Iridium Communications, Inc. emerged as the sole gainers in the space sector during July, rising 8.4% and 4.1% respectively. These gains occurred despite a broader market downturn that saw many popular space stocks, including SpaceX, experience significant declines. The selloff follows SpaceX's ambitious public debut, which pitched a $28.5 trillion market opportunity. However, skepticism regarding this valuation has grown, with NYU finance professor Aswath Damodaran describing the estimate as bordering on fantasy. While retail investors remained bullish on AST SpaceMobile and Rocket Lab, these stocks actually saw negative returns for the month. In contrast, Viasat, Inc. and Iridium Communications, Inc. have outperformed the group on a year-to-date basis, with the latter gaining 170%. Analysts attribute Viasat's success to its valuable L-band spectrum holdings, while Iridium's performance was bolstered by Rocket Lab's $8 billion takeover deal. These results suggest that while retail enthusiasm remains high for certain names, stronger fundamentals are currently driving the most consistent returns.