The 'Trump-Elon trade' rally contributed to significant growth in space stocks this week, according to analysts.

• Numerous space-focused stocks experienced a 20% or greater increase in value this week, in part due to the "Trump-Elon trade," as sector analysts described it.
• This week, Rocket Lab, Intuitive Machines, Spire Global, Planet Labs, Redwire, and AST SpaceMobile experienced significant growth, with increases of 41%, 28%, 26%, 16%, 15%, and 10%, respectively.
• In 2024, "space has been one of the best outperformers in the market," according to Cantor Fitzgerald analyst Andres Sheppard, as stated on CNBC.

Several pure-play space stocks experienced significant gains this week, with some leaders increasing by as much as 20%, due in part to the "Trump-Elon trade," referring to the connection between President-elect Donald Trump and SpaceX CEO Elon Musk.

The CEO of ProcureAM, Andrew Chanin, stated on CNBC that the most important human in the history of the space industry having the ear of the president-elect, who in his past term found space important enough to create a separate branch of the military, is a potential catalyst that many people were not talking about before.

This week, there were increases of 41%, 28%, 26%, 16%, 15%, and 10%.

The gains were partly driven by third-quarter results and individual updates, including Rocket Lab's progress on Neutron and Spire's sale of its maritime business to reduce debt.

Andres Sheppard, a Cantor Fitzgerald analyst, stated that there is a broader market sentiment influencing the stocks of Rocket Lab, Redwire, and Intuitive Machines, all of which he has given buy ratings.

According to Sheppard, there's definitely a risk-on, post-Trump-win rally being reflected in this industry.

In 2024, the top-performing space stocks have experienced a significant increase in value, with some stocks tripling or even quadrupling in price.

"Space has been one of the best outperformers in the market this year for several names," Sheppard said.

"Institutional investors are increasingly recognizing the potential of this market to continue accelerating, as evidenced by the influx of calls and emails we're receiving from them. This trend is likely to continue due to factors such as national security concerns, the Artemis program, and Elon Musk's ambitious plans for space exploration."

SpaceX's private ownership means investors are seeking exposure to the space sector through other companies, according to Sheppard. Meanwhile, ProcureAM's Chanin believes SpaceX's dominant position in rocket launches and satellite broadband helps companies that need a ride to orbit.

Chanin stated that everyone gains from the reduced expense of reaching space.

This week, there has been a significant divergence between the performance of newer and older space stocks. While newer companies that have recently gone public, such as , experienced growth, legacy players like and declined, with both companies losing over 10% of their value.

Cestrian Capital Research CEO Alex King stated that the gap signifies a generational shift in the space industry.

"The demand for legacy businesses is decreasing. In my opinion, the advancements in space technology are a slower version of the rapid changes that occur in the tech industry, where cost-effectiveness ultimately prevails in the end," King stated.

King stated that the market is determining which companies will endure and which will not.

Although the top space performers have made significant gains so far this year, Sheppard predicts that the sector will not slow down anytime soon.

Despite the outperformance, the overall sentiment remains very bullish, according to Sheppard.

According to Rocket Lab CEO Peter Beck, the Trump administration's "very strong focus on space" will maintain the industry's momentum.

"When space wins, Rocket Lab wins," Beck said.