One of the fundamental constraints in expanding commercial space activity remains the cost of placing mass into orbit with traditional rocketry. Historically, large expendable vehicles like NASA’s Space Shuttle cost tens of thousands of dollars per kilogram of payload to low Earth orbit (LEO), a function of complex systems, limited reuse, and low flight rates. Published analyses of Shuttle operations suggest this cost was historically not scalable, per NASA.
The clearest measurable progress has come from reuse and cadence. NASA’s report titled “The Recent Large Reduction in Space Launch Cost” notes that SpaceX’s Falcon 9 publicly advertises $60 million to send 22,800 kg to low Earth orbit, which implies about $2,720 per kg at list price, versus Space Shuttle-era costs of around $54,500 per kg. Reuse changes the unit economics only if it is routine, and SpaceX’s recent operating data points to routine. In 2025, SpaceX, as reported by the magazine Space.com, completed 165 orbital launches, nearly one every other day, with most missions on Falcon 9. On the hardware side, boosters have reached flight counts above 30, which is the practical definition of amortizing an expensive first stage across many revenue opportunities rather than a single one.
That said, economies of scale in rocketry are still not solved, because the next order-of-magnitude step likely requires fully reusable heavy lift, rapid turnaround, and a large, steady demand base. Starship is aimed at that regime, but the market is watching for demonstrated operational reliability and repeatability, not just design intent.
Against that backdrop, IPO chatter matters because it can reprice the entire sector’s risk assumptions. Reuters reports that SpaceX has been weighing an IPO timeline for mid-2026 and, more recently, preparations to file confidentially as early as March 2026, with valuations discussed in the $1.5 trillion to $1.75 trillion range. If those reported figures are even directionally right, the implication is that public-market investors may soon be asked to underwrite space economics at a scale that previously lived mostly in private capital.
Methodology
We used screeners to identify space- and space-industry-exposed stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds, specifically ranked by the latter metric.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Redwire Corporation (NYSE:RDW)
Number of Hedge Fund Holders: 28
Redwire Corporation (NYSE:RDW) is one of the best space stocks to buy now.
On February 25, 2026, Redwire reported fourth-quarter and full-year 2025 results (for the period ended December 31, 2025). Full-year revenue rose 10.3% year over year to $335.4 million, while fourth-quarter revenue increased 56.4% year over year to $108.8 million. Management attributed part of the fourth-quarter acceleration to the June 2025 acquisition of Edge Autonomy, while also pointing to higher contract awards and a record contracted backlog of $411.2 million.
Redwire ended 2025 with a book-to-bill ratio of 1.32 for the full year and 1.52 in Q4, alongside total liquidity of $130.2 million. The company reported a fourth-quarter net loss of $85.5 million and a full-year net loss of $226.6 million, which it said included more than $40 million and $130 million, respectively, of non-recurring activity; adjusted EBITDA was $(18.1) million in Q4 and $(50.3) million for the year.
CFO Chris Edmunds said Q4 results saw a “substantial negative impact” from EAC adjustments tied largely to development-stage programs, with a stated focus on moving programs into production to support gross margin improvement. Separately, the company said it used ATM proceeds in Q4 to repay $105.5 million of debt and refinanced its remaining credit agreement in February 2026, estimating over $17 million in annualized interest savings. Shares were up about 20% for the week through February 26, 2026, following the report.
Redwire Corporation (NYSE:RDW) is an integrated space and defense technology company focused on advanced aerospace infrastructure, autonomous systems, and multi-domain capabilities, with operations across the U.S. and Europe.
10. Intuitive Machines, Inc. (NASDAQ:LUNR)
Number of Hedge Fund Holders: 28
Intuitive Machines, Inc. (NASDAQ:LUNR) is one of the best space stocks to buy now.
On February 25, 2026, Intuitive Machines announced a $175 million strategic equity investment led by global institutional investors. The company said it plans to use the proceeds to support revenue expansion and fund technologies aimed at advancing satellite communications and in-space data processing networks, following its January acquisition of Lanteris Space Systems. Intuitive Machines specifically highlighted extending Lanteris’ flight-proven satellite platforms, including the 1300 series used in geostationary orbit, into adjacent growth markets.
The company also said it intends to invest in expanding its Near Space Network Services and described a goal of building a ‘solar system internet’ that is independent of Earth, while pointing to potential applications spanning GEO, cislunar operations, and eventual Mars communications. Management framed the investment as supportive of pursuing higher-margin, recurring revenue programs, naming Golden Dome initiatives, NASA’s Tracking and Data Relay Satellite System, and the Mars Telecommunications Orbiter, alongside a developing ‘orbital data center’ market. The company said the securities purchase agreement involves the issuance of Class A common stock and that the transaction is expected to close on February 27, 2026, subject to customary conditions.
Intuitive Machines, Inc. (NASDAQ:LUNR) is a Houston-based space infrastructure company that builds spacecraft, provides communications and navigation-related capabilities, and delivers infrastructure services for commercial, civil, and national security customers.
