The "space-themed stocks" craze, ignited mainly by U.S. retail investors, is spreading to Europe. Expectations for an initial public offering of Elon Musk's SpaceX and the trend of rising defense budgets across countries are pushing up share prices of satellite and space-related corporations.
According to Bloomberg on the 14th (local time), the share price of U.K. space investment firm Seraphim Space has surged nearly fourfold over the past year. Based in London, Seraphim is a fund whose portfolio mainly holds unlisted space corporations such as Finland's satellite startup "Iceye."
What stands out is that a "bizarre phenomenon" is occurring in which the share price overwhelmingly exceeds the fund's net asset value (NAV). Seraphim's per-share asset value is about 140 pence, but the market is trading it around 240 pence with a 71% premium. Rather than the substance of the asset, optimism about the space industry has lifted the stock. On social media (SNS), some even call Seraphim the "European meme stock (a stock that soars on word of mouth)."
Other space-related stocks in Europe are also showing abnormal surges. Filtronic in the U.K., which supplies parts to SpaceX, has seen its share price rise 245% over a year, and German satellite manufacturer OHB SE has skyrocketed 635% in the same period.
The market believes that speculation that the listing of SpaceX, cited as a candidate for the largest initial public offering (IPO) in history, is imminent is stoking investor sentiment. On top of that, the potential success of the National Aeronautics and Space Administration (NASA)'s crewed moon mission "Artemis II" and moves to expand defense spending amid geopolitical tensions have poured fuel on the fire.
U.S. investment bank Morgan Stanley said in a recent report that "the space industry is back," naming 60 beneficiary stocks. A well-known investor on global investment platform eToro noted, "It's an era when we communicate directly with space corporations' CEOs via X (formerly Twitter) to get information," adding, "The space industry has fully entered the realm of mainstream investing."
But concerns about overheating are also growing. Experts said the current space frenzy recalls the "Scottish Mortgage Investment Trust" episode, which rode the early-2020s Tesla surge and then plunged afterward. The fund soared amid the Tesla investment boom but saw its share price tumble by nearly half over roughly 18 months after its 2021 peak.
The CEO of Hague Bassgate Kalanish Capital warned, "The market now is being driven by inflated expectations, momentum, and a speculative fever among retail investors," adding, "The peak of a mania is when it's most dangerous." In fact, France's Eutelsat, which staged a 300% rally in 2025, saw its share price plunge as it faced uncertainty over government support.