Why Astra stock fell 8% today

What happened

Rocket Developer Actions Astra Space (NASDAQ: ASTR) closed down 7.9% on Monday after a difficult day for the stock market in general. The S&P 500 fell by 1.3%, and growth stocks in particular was clubbed.

But Astra Space’s stock has its own problems.

Image source: Getty Images.

So what

Specifically, the new space park took its first to sell quoted on Wall Street. This was his second overall rating since German Bank became the first analyst to cover it in July (with a buy note, as StreetInsider.com reported at the time).

At the time, Deutsche called Astra “the first pure rocket launcher to go public”, arguing that the shares offered “a unique value proposition in the market”. But hesitant from Deutsche’s point of view, Bank of America today marked Astra with an “underperformance” rating, warning that it sees a limited rise in stocks due to the fact that Astra is already “several steps” behind rivals, such as Rocket Lab and Virgin Orbit, like TheFly.com reported today.

Now what

This is a harsh criticism – but precise. It has now been nine months since Virgin Orbit completed its first orbital launch from a satellite to space. Virgin Orbit repeated the feat in June and a third launch is slated for later this year, followed by an initial public offering via an ad hoc acquisition company (SPAC).

Rocket Lab has been even busier, with 21 successful space launches since its first in May 2017. It has up to four more launches in the hopper later this month, according to our friends at Next Spaceflight.

In contrast, Astra’s latest attempt to reach orbit failed last month – his sixth consecutive failure. As the competition increasingly explodes ahead of Astra, it’s easy to see why Bank of America would be pessimistic about Astra’s chances of catching up.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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