Intuitive Machines Is Selling Off Before the SpaceX IPO. It’s a Much-Needed Reset for LUNR Stock.

The space sector was on a strong run through most of May 2026. Redwire (RDW) surged 181% year-to-date (YTD), Momentus (MNTS) jumped 109% in a single session, and Rocket Lab (RKLB) gained 71.95% since January. The rally was driven by excitement around SpaceX’s planned Nasdaq listing, which could value the company at up to $1.75 trillion. Money flowed into almost anything tied to space, and the idea was simple. When SpaceX goes public, the rest of the sector benefits.

Then things turned. A Blue Origin rocket explosion shook confidence, and investors who were sitting on big gains started taking profits. That quickly pushed many space stocks lower.

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Intuitive Machines (LUNR) is right in the middle of that pullback. The stock hit $46.75 on May 28, its 52-week high, and is now down 28.06% from that level. After running more than 204% over the past year, some selling was expected. But the drop got worse after a setback. NASA passed on Intuitive Machines for its Lunar Terrain Vehicle contracts, awarding them to Astrolab and Lunar Outpost instead, a deal Cantor Fitzgerald estimated at up to $4.6 billion.

Now the setup is clear. The stock is down nearly 30% from its peak, and the sector has quickly shifted from chasing gains to locking them in. Is this a good entry point, or is the hype fading just as the SpaceX IPO approaches?