Firefly Aerospace Inc ( FLY ) shares are climbing Tuesday. The Nasdaq is up 1.56% while the S&P 500 has gained 1.42%. The surge comes as the space sector reacts to reports that Elon Musk’s SpaceX is preparing for an initial public offering IPO.

SpaceX IPO Filing Buzz

According to The Information on March 25, SpaceX aims to submit its IPO prospectus to regulators this week. Reports suggest the company could seek a valuation above $75 billion. This move has ignited investor enthusiasm across the sector, as the potential listing would be one of the largest in history.

Nasdaq Rule Changes

Market sentiment is further bolstered by Nasdaq’s proposed rule changes effective May 1. These revisions could allow a large-scale listing like SpaceX to join the Nasdaq 100 within 15 days of its IPO. The index also proposed a “fast entry” for companies ranking within the top 40 constituents by market capitalization.

Strong Financial Foundation

Firefly’s momentum follows a “transformative year,” according to CEO Jason Kim. The company recently reported a fourth-quarter revenue of $57.67 million, beating the consensus estimate of $52.35 million. Firefly ended the period with $792.97 million in cash and equivalents.

Operational Success and Defense Wins

The company recently supported Lockheed Martin Corporation ( LMT ) in the U.S. Space Force VICTUS DIEM mission.

Technical Analysis

Firefly is now trading 17.9% above its 20-day simple moving average (SMA) and 18.1% above its 100-day SMA, showing a sharp rebound off the March lows even as the longer-term chart is still repairing.

Shares are down 55.42% over the past 12 months and are currently positioned closer to their 52-week lows than highs.

The RSI is at 50.51, which sits in neutral territory. Meanwhile, MACD is at 0.7044 versus a 0.4400 signal line, keeping a bullish MACD structure in place with a positive 0.2643 histogram.

Key Resistance: $28.50

Key Support: $21.50

FLY Stock Price Activity: Firefly Aerospace ( FLY ) shares were up 14.14% at $26.96 at the time of publication on Tuesday, according to Benzinga Pro data.