Firefly Aerospace Inc (NASDAQ:FLY) shares are taking a plunge on Friday as space-related stocks pull back from their recent rally.
Firefly Aerospace shares are retreating from recent levels. Why is FLY stock falling?
What Happened: Space stocks are pulling back after a strong year‑end rally fueled by excitement over a potential SpaceX IPO in 2026 and a new executive order from President Donald Trump aimed at boosting the industry.
Trump’s order, along with the appointment of billionaire Jared Isaacman to lead NASA has sparked a wave of optimism heading into the new year. Andrew Chanin, CEO of Procure Holdings (NASDAQ:UFO), told Benzinga that putting influential leaders in the right positions can “pull different levers” that help drive momentum across the sector.
Chanin highlighted NASA’s Artemis program, which aims to return humans to the Moon, as a major focus for Isaacman. He also noted that the U.S. is placing greater emphasis on “defense national security,” a shift that could influence future investment and government incentives for space‑related companies.
The administration’s renewed attention on space combined with the possibility of a new, defense‑driven “space race” could create meaningful long‑term tailwinds for the industry, according to Chanin.
Firefly also gained attention recently after joining the Russell 2000 Index in December, one of 18 companies added during the month. Its inclusion automatically placed it in the broader Russell 3000 Index as well.
FLY Price Action: Firefly shares were down 11.47% at $26.99 at the time of publication on Friday, according to Benzinga Pro.
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Image: Evan El-Amin
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