SpaceX IPO Triggers Short Build in ASTS, SPCE as S3 Partners Identifies Top Bearish Bets Year-to-Date

According to S3 Partners, SpaceX's IPO has reshaped space sector investing dynamics, making smaller public companies clearer directional short targets. AST SpaceMobile (ASTS) and Virgin Galactic (SPCE) have emerged as the sector's highest-conviction bearish trades, with ASTS short interest climbing 41% year-to-date to 54 million shares and SPCE surging 86% to 28 million shares. S3 noted only about 22% of ASTS short interest stems from convertible-bond arbitrage, indicating outright bearish conviction.

Meanwhile, Intuitive Machines (LUNR) remains heavily shorted at 35 million shares, but passive and active long positions have grown faster, with passive ownership up 101% and active longs up 52% year-to-date. In contrast, Rocket Lab (RKLB) and Viasat (VSAT) saw shorts retreat, declining 22% and 26% year-to-date respectively, as improved operating fundamentals attracted investor support.