Space Stocks Get Torched: Short Seller Calls Them 'Sci-Fi Wishes'

Space stocks plummeted Friday as SpaceX began trading and short seller Fugazi Research published a critical report targeting six publicly traded space companies. Fugazi argues the sector's premium valuation relied on investors buying space proxies before SpaceX's IPO, a trade that will unwind now that SpaceX offers direct access to a company with actual revenue and profitability. The report characterizes the sector as a 'capital recycling mechanism' with business plans that read as 'sci-fi wishes' rather than viable commercial opportunities.