Space stocks are blasting off on Monday, with shares of Holicity (NASDAQ:HOL), Vector Acquisition (NASDAQ:VACQ), New Providence (NASDAQ:NPA), Stable Road (NASDAQ:SRAC) and Maxar Technologies (NYSE:MAXR) leading the way. It seems there are two reasons investors are ready to leave this planet. So what are those reasons? And what else should you know now?
As a quick refresher, a handful of these red-hot equities are special purpose acquisition companies. Space SPACs and space stocks promise to bring the sun, moon and stars to Wall Street. These trending names represent Rocket Lab, Astra, AST SpaceMobile and Momentus.
Importantly, these SPAC targets are at least partially responsible for the investor interest in space stocks today. That is because Rocket Lab, which plans to come public through Vector Acquisition, is getting ready to launch. According to a company tweet, Rocket Lab has entered the launch window for They Go Up So Fast, its 19th mission.
They Go Up So Fast relies on the Electron rocket from Rocket Lab. This mission will send satellites on behalf of several commercial and government operators like the U.S. Army and the University of New South Wales. It will also send a next-generation Rocket Lab Photon spacecraft into orbit in order to prep for NASA mission to the moon later this year.
Investors appear to be celebrating this milestone for Rocket Lab and for VACQ stock. And more broadly, it seems to serve as a reminder of the many popular space companies planning to come public. Others, like Astra, continue to receive favorable coverage ahead of their SPAC mergers.
Space Stocks and the ARKX ETF Boost
There is another big catalyst on the horizon for space stocks.
Importantly, Cathie Wood gave the sector a big boost earlier in 2021 when her Ark Invest registered to launch a space exploration exchange-traded fund. Almost instantly, investors started sleuthing to find stocks that would make sense for the ARKX ETF. And since that registration, even more space companies have announced plans to come public through blank-check businesses.
For investors, that means this is a red-hot opportunity, especially because so many look to Wood as an influencer in the market. If she is endorsing space stocks through her ETF, many others will take that as a sign to follow suit.
So what does this have to do with the rally today? Although it is not entirely clear when the ARKX ETF will launch, estimates predict the fund could debut as soon as March 29. With that date just a week away, it seems many investors are gearing up for big gains in their favorite space names.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.