Rocket Lab (RKLB) stock tumbled almost 11% on June 12 after SpaceX (SPCX) made its public market debut, raising concerns about whether investors are shifting capital from smaller space stocks into the industry's new heavyweight.
The market's reaction is understandable. As the dominant player in the commercial space sector, SpaceX could attract a larger share of investor capital, government contracts, and commercial opportunities, potentially intensifying competitive pressure on smaller players such as Rocket Lab.