The category of space race stocks just got a little smaller. After months of struggling, Astra Space and ASTR stock have stopped trading on the Nasdaq, per a U.S. Securities & Exchange Commission (SEC) regulatory filing dated July 18, 2024. This is part of a take-private deal with the company’s founders, announced on March 7, that closed today.
ASTR stock has officially ceased trading publicly and has been delisted from the tech-heavy stock exchange. But given how poorly it performed over the past one year — falling more than 90% — most investors probably weren’t rushing to snap up shares.
ASTR Stock Isn’t Going ‘Ad Astra’
When Astra Space first started trading in 2021, the company turned plenty of heads. A member of the early special purpose acquisition company (SPAC) boom, ASTR stock benefited from the rush on exciting new companies opting to go public via blank-check mergers. But this trend proved toxic for some investors. As Inc. reports, since 2020, more than a third of the SPAC boom names have liquidated despite enjoying some impressive trading debuts.
Like many of its peers, ASTR stock failed to sustain the momentum it experienced after its public debut. Its problems can’t be fully attributed to its industry, however. Indeed, thanks to CEOs like Elon Musk and Jeff Bezos, space stocks have never been more in focus as the sector continues to innovate. But while stronger peers like Rocket Lab USA (NASDAQ:RKLB) and Intuitive Machines (NASDAQ:LUNR) have demonstrated impressive growth over the past few quarters, Astra Space has only trended downward. As Bloomberg reports:
“The deal underscores Astra’s significant and rapid decline. Founded in 2016, Astra Space aimed to build small rockets to launch small satellites into space. However, the company has suffered from a string of development delays and in-flight launch failures, including one for NASA. It entered the satellite-propulsion business with the purchase of Apollo Fusion in 2021, with the goal of extending its launch and space services beyond low-Earth orbit.”
The fact that Astra Space couldn’t make progress despite operating in a fast-growing sector says everything about its problems. As InvestorPlace contributor Ian Bezek summarizes, ASTR stock and Astra “promised investors the stars and but failed to make it off the ground.” Now that the company is no longer public, investors will able to turn their attention to other companies with much stronger growth prospects.
On the date of publication, Samuel O’Brient 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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