Space stocks got torched Friday as SpaceX (NASDAQ:SPCX) opened for trading, and a short seller attacked six names in the sector. 

SPCX stock is open for trading. See the chart and price action here.

Fugazi Research published a short report targeting six publicly traded names, declaring that the commercial space sector is “not an industry in the conventional sense of the word but a capital recycling mechanism dressed in the aesthetic of human ambition.” The firm added that the sector’s “business plan portfolio reads as a list of sci-fi wishes rather than a collection of investable commercial opportunities.”

Short Thesis

The firm’s central thesis: the sector’s entire premium rests on one trade, buy public space proxies before SpaceX goes public via its SPCX listing, then ride the re-rating.

Fugazi argues that trade is about to unwind. 

“When SpaceX begins trading under SPCX, giving capital direct access to the only space company with actual revenue, actual launch dominance, and actual recurring cash flows,” the report states, the structural reason to hold any of the six names at a premium “amounts to zero.”

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