Why Intuitive Machines Stock Slipped on Tuesday

The market's intuition on Tuesday was to sell out of Intuitive Machines (NASDAQ: LUNR). It and other space stocks took hits to their share prices, as numerous investors booked quick profits after a recent mini-rally in the sector.

Space race

Last Thursday, President Trump issued a new executive order directing federal agencies involved in extraterrestrial activities to help make the U.S. dominant in space.

Image source: Getty Images.

Headlined "Ensuring America's Space Superiority," the order outlines a set of ambitious goals beyond our planet. Among others, it aims to return American astronauts to the Moon by 2028 and establish a permanent lunar outpost on the satellite by 2030. It also seeks to enhance space security, both through American efforts and through the contributions of allies.

The order states that our country needs to "pursue a space policy that will extend the reach of human discovery, secure the nation's vital economic and security interests, unleash commercial development, and lay the foundation for a new space age."

Obeying gravity

Since the commercial space sector is larger than it has ever been, companies like Intuitive will play a crucial role in this effort. This was a key factor in their stock price pops over the past few days.

However, we're at the end of the year, and many institutional investors want to cap off the period by showing decent gains in at least some of their stocks. Intuitive was one of these titles, so if I were bullish on the company, I'd take this as a short-term, not very meaningful adjustment and hold on to my shares.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.