Astra Space (NASDAQ:ASTR) has spent the last month surging and falling, adding to the volatility today with a 23% move higher in ASTR stock.
Despite this increase, on a year-to-date basis, Astra Space is still down approximately 75%. Like other space stocks, declining investor interest tied to valuation compression and tighter monetary policy have hit ASTR hard.
However, Astra has also had its own set of challenges, with several failed launches of its Rocket 3 booster line. These failed launches have led the company to cancel this line completely, moving to what Astra calls the next version of its launch system.
This system, what the company apparently intends to call Rocket 4, will be what Astra hopes to transition all its customers to. It’s important to note that NASA is a key customer of Astra’s. Accordingly, this move needs approval, and there is a significant amount of commercial testing left.
That said, investors are seemingly looking positively upon this move. Let’s dive into what may be in store for Astra from here.
Can ASTR Stock Head to the Moon?
Notably, a significant portion of today’s buying interest in ASTR stock can be attributed to moves seen in other similar, speculative stocks. Meme rallies are happening everywhere, with retail investors experiencing a new renaissance. Given this company’s strong retail investor base, this rally is perhaps unsurprising.
That said, the degree to which investors have jumped aboard ASTR stock is impressive. Given its various launch issues, this stock has been dead in the water for some time. And while it is possible Astra can return to form, there are more headwinds than tailwinds with this stock right now.
Accordingly, this stock is one that’s too speculative for my liking. This rally is great, and shareholders should be happy. However, given the longer-term trajectory, I’m going to sit this rally out.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.