History Says to Buy These Space Stocks in a Market Crash

This year, the stock market has seen substantial growth, with the S&P 500 and the Nasdaq Composite up roughly 12% and 12.5%, respectively, in 2026. Over the past five years, these indexes have risen by 71% and 74%, respectively. However, recent market conditions have become more volatile due to concerns over inflation, high bond yields, high valuations, financing issues for AI companies, and other factors. Despite this uncertainty, some investors believe that buying space stocks during a market crash could be a wise move.

SpaceX, with a valuation profile heavily dependent on future growth, reported $18.7 billion in sales last year. Analysts expect the company to generate roughly $45 billion in revenue this year, marking a growth rate of around 141%. SpaceX operates at a significant market capitalization of $1.92 trillion, currently trading at 43 times its expected sales for the year.

The company is still operating at a loss, primarily due to substantial capital expenditures aimed at AI infrastructure, chip manufacturing projects, and other ventures. However, SpaceX's rapid expansion and innovative potential make it an attractive investment option if a crash leads to a substantial decrease in its valuation.

Rocket Lab, another key player in rocket launch services, has also experienced rapid growth. In the second quarter alone, Rocket Lab's revenue increased by approximately 62%, reaching about $234 million. The company's market capitalization is roughly $30.4 billion, trading at 32 times its expected sales for the year. Like SpaceX, Rocket Lab is still operating at a loss, with a potential turnaround contingent upon achieving economies of scale and improving operational efficiency.

A significant valuation dip during a market crash could present a buying opportunity for this innovative company, as its proven reliability in getting payloads into orbit has already positioned it as a viable investment choice.