CNBC Pro

What rising interest rates mean for the cluster of newly public space stocks

Virgin Orbit's modified 747 jet "Cosmic Girl" releases the company's LauncherOne rocket for a mission on January 13, 2022.
Virgin Orbit

The past year saw a flurry of space companies go public through SPAC mergers, giving investors new options to trade the growing industry.

But the beginning of 2022 has not been kind to the stocks of many newly public space companies, with several down 20% or more in the first two weeks of the year.

Technology and growth stocks – especially companies whose profitability is years away, as is the case with several space ventures – have been hit hard. The Federal Reserve expects at least three interest rate hikes this year. These high-growth stocks are being punished because rising interest rates reduce the value of the companies' future cash flows.

Here is what analysts told CNBC on the changing market environment and its impact on the space sector.

More In Investing trends

CNBC ProStocks including Honeywell and Emerson are under-the-radar beneficiaries of the climate bill
CNBC ProGoldman Sachs says planned energy transition is driving stocks, picks its 'best-in-class' names
CNBC ProGoldman says battery storage, hydrogen and other clean energy stocks are where investors should be