Update on Our 3 Small-Cap Space Stocks After Blue Origin Disaster
Our trio of space names could be feeling some fallout from the Amazon partner’s setback.
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This is something we discussed in Friday morning’s “Market Recon” column: On Thursday night, Blue Origin, which is run by Jeff Bezos, reported that the firm had “experienced an anomaly during today’s hotfire” when a “New Glenn” rocket was loaded with fuel and fired its engines to test its systems days ahead of a planned launch of 48 Leo internet satellites for Amazon (AMZN). The rocket exploded.
Oddly enough, as I write this piece, the ground rumbles and I can hear a sound similar to what a column of tanks sound like when approaching your position from about a mile out. SpaceX is apparently launching from Canaveral right now.
On Thursday night, Blue Origin reported that all personnel had been accounted for. Several employees did report to the media that there had been severe damage to the company’s only launch pad in addition to some other equipment. The explosion will be expected to significantly impact Blue Origin’s ability to carry on with its launch schedule for 2026. The firm had scheduled 12 launches for the “New Glenn” rocket for the balance of this year. The idea was to better compete with Elon Musk’s SpaceX.
SpaceX, as readers well know, is set to go public next month and interest in that deal has been a driving force behind the sentiment that had, over recent weeks, broadly pushed other space industry stocks higher. Amazon had paid Blue Origin $2.7 billion to launch its satellites and needed to stay on schedule in order to meet specific regulatory deadlines. Blue Origin also holds several government contracts and was awarded $468 million earlier this week by NASA to help develop a U.S. base on the moon. As SpaceX may be the only competitor capable of picking up the slack, other players in the sector did not see immediate benefit.
Space stocks in this portfolio include Rocket Lab (RKLB), Planet Labs (PL) and Sidus Space (SIDU). All three were trading lower overnight. Among those firms, only Rocket Lab offers launch services, while Sidus Space offers launch planning and coordination services.
Recent Portfolio News
Amazon (AMZN)
On Friday morning, analyst Youssef Squali of Truist Financial reiterated a buy rating on AMZN while increasing his target price from $310 to $320. Squali is rated at four stars out of five at TipRanks. Over the past two years, he has a 53% success rate, with an average return of 17.7%.
Also on Friday morning, news broke that Amazon will be taking over Apple’s (AAPL) 20% stake in Globalstar (GSAT) as part of its $11.6 billion acquisition of that company. In a regulatory filing the firm wrote “Amazon’s investment in constellation expansion and technical improvements will strengthen the 1.6/2.4 GHz MSS that millions of iPhone users depend upon today for safety in areas without cellular coverage.”
Ondas Inc (ONDS)
On Friday morning, Ondas Inc announced that the firm had secured over $30 million in new orders during the month of May across its defense, security and autonomous technology platform. This brings Ondas’ Q2-to-date orders to over $110 million. These orders are being captured across Ondas’ system-based defense and security businesses, including Air Defense and C-UAS solutions, loitering munition and one-way attack systems, UGVs, robotic defense systems and mission-critical security technologies.
On Thursday, analyst Max Michaelis of Lake Street reiterated a buy rating on ONDS along with his $19 target price. Michaelis is rated at five stars out of five at TipRanks. Over the past two years, he has a 79% success rate, with an average return of 76.5%.
SoFi Technologies (SOFI)
On Thursday, analyst Vincent Caintic of BTIG reiterated a hold rating on SOFI without setting a target price. Caintic is rated at three stars out of five at TipRanks. Over the past two years, he has a 50% success rate, with an average return of 1.9%.
Upcoming Portfolio Earnings
Planet Labs: after the closing bell on Thursday, June 4
Thursday’s Intentions vs Thursday’s Actual Trades
Intention: Sell 2 shares of RKLB at $152 or better
Actual trade: Nothing done
Friday’s Intentions
Sell 2 shares of (PLTR) at or close to the last sale of $154.91
Sell 25 shares of SOFI at or close to the last sale of $17.86
Purchase 3 shares of PL at or close to $45.20
Purchase 25 shares of ONDS at or close to the last sale of $11.88
Purchase 25 shares of SIDU at or close to the last sale of $4.47.
Current Positions
Long 2 shares of AMZN at $263.71. Target price: $324. Last sale: $271.80.
Long 60 shares of (EVLV) at $5.9895. Target price: $8.50. Last sale: $6.41.
Long 200 shares of (OCUL) at $8.271. Target price: $11. Last sale: $9.18.
Short one OCUL $11 September 18 call at $1.65. Last sale: $1.50.
Short one OCUL $9 July 17 call at $0.90. Last sale: $1.35.
Long 125 shares of ONDS at $9.4749. Target price: $14. Last sale: $11.92.
Long 7 shares of PL at $37.18. Target priceL $55. Last sale: $45.20.
Long 12 shares of PLTR at $140.30. Target price: $194. Last sale: $154.91.
Long 5 shares of RKLB at $59.206. Target price: $185. Last sale: $134.71.
Long 125 shares of SIDU at $2.725. Target price: $6. Last sale: $4.47.
Long 200 shares of (SNAP) at $5.7642. Target price: $7.50. Last sale: $5.75.
Short two SNAP October 16 $6 calls at $0.87. Last sale: $1.02.
Long 175 shares of SOFI at $15.9573. Target price: $24. Last sale: $17.86.
Short one SOFI August 21 $20 call at $1.02. Last sale: $1.56.
Long 35 shares of (VELO) at $12.3231. Target price: $30. Last sale: $22.05.
Cash: $752.12.
Portfolio value: $12,841.54, +28.4% from inception on March 24.
At the time of publication, Guilfoyle was long AMZN, EVLV, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.
