Redwire Corp (NYSE:RDW) shares are sliding on Tuesday as investors rotate out of smaller space stocks and into SpaceX following its blockbuster IPO.
SpaceX's historic market debut propelled the company to a roughly $2.1 trillion valuation.
While the IPO initially boosted sentiment across the space sector, it has since become a magnet for capital.
Traders are selling holdings in smaller space companies, including Redwire, to fund purchases of the newly public aerospace giant, weighing on shares of legacy industry players.
Read Also: Stock Market Today: S&P 500 Futures Fall, Dow Gains Amid US-Iran Agreement, SPCX Stock Surge—Dave And Buster's, Western Digital In Focus Share Dilution Fears From $500M Equity Program Compounding the pressure, Redwire announced a $500 million at-the-market (ATM) equity offering program last week.
