Space Technology: Top 50 - Perspectives on the pullback

Space/satellite stocks have experienced a steep correction over the past quarter. A rising interest rate environment would have a negative effect on this group, and the SpaceX IPO created further pressure, hurting retail and thematic flows in our view. The report identifies 50 public space companies globally (excluding SpaceX), worth $254bn in total, or +20% YoY. In terms of YTD performance, the average change in market capitalization for a space stock is +14% (median -4%) vs. NASDAQ +17%; the best performer is +248% vs. worst -72%. Over the past four years there have been four corrections of >40%, with the average peak-to-trough decline across the "New Space" cohort in the US at -44%; the current correction saw a >60% drawdown at its low, suggesting a trough may be in.