2 Space Stocks Soaring as Musk-Trump Feud Intensifies

President Trump's threat to cut Elon Musk's government contracts amid a public feud has boosted shares of SpaceX competitors AST SpaceMobile Inc (ASTS) and Rocket Lab USA Inc (RKLB). ASTS is up 14.1% reaching a 2025 peak, while RKLB is up 6.4%, nearing its January record high, with both stocks experiencing significantly increased options activity.

Analysis

The ongoing public dispute between President Trump and Elon Musk, which included a threat by Trump to potentially curtail SpaceX's government contracts, has acted as a significant short-term catalyst for competing earth exploration (EO) firms AST SpaceMobile Inc (ASTS) and Rocket Lab USA Inc (RKLB). ASTS shares surged 14.1% to $35.58, achieving what the article terms a 'new 2025 peak' of $36.66, and extending its year-to-date gains to 320.4%; the stock is reportedly supported by key long- and short-term moving averages and was on track for its sixth consecutive rise. Concurrently, Rocket Lab USA (RKLB) experienced a 6.4% increase to $30.77, trading near its January record high of $33.24, and has registered a substantial 596.6% gain over the past 12 months, having been in an uptrend since a reported double bottom around $16 in the spring. This pronounced market reaction is further evidenced by options trading volume for both ASTS and RKLB tripling from typical levels, with significant new positions being opened in ASTS June 40 calls and RKLB weekly 6/13 32-strike calls. Such activity, coupled with strongly positive specific sentiment scores (ASTS: 0.9, RKLB: 0.85), a general sentiment score of 0.8 (strongly positive), and an overall market impact score of 0.6, indicates heightened speculative interest and bullish short-term positioning driven by the perceived competitive shift stemming from political dynamics rather than disclosed fundamental changes.

Key Decisions for Investors

• Investors should acknowledge the current upward momentum in ASTS and RKLB is primarily driven by political uncertainties surrounding SpaceX, which may present tactical trading opportunities but also carries significant event risk tied to a highly fluid situation.
• Monitor developments in the Trump-Musk feud and any official statements regarding government contracts very closely, as any resolution or de-escalation could rapidly reverse the recent gains in these competitor stocks, given the speculative nature of the rally.
• Considering the substantial recent share price appreciation (ASTS +320.4% YTD, RKLB +596.6% over 12 months) and the surge in options activity, it is prudent to employ robust risk management strategies, such as defined exit points or appropriate position sizing, if participating in this event-driven market movement.