Space stocks fell on heavy trading Thursday as investors digested several industry headwinds. 

United Launch Alliance's Vulcan rocket experienced a solid rocket booster issue on Thursday, which heightened hardware concerns across the industry. 

Additionally, the pure-play space sector remains highly sensitive to Elon Musk's commentary, a reported SpaceX IPO and the accelerating integration of AI with orbital data.

Adding to the pressure, a major space satellite player announced a massive convertible note offering that pulled the entire sector lower on Thursday. 

Here's a look at the recent developments and space stocks' price action. 

ASTS stock is plunging. See the real-time price action here. 

AST SpaceMobile – ASTS

AST SpaceMobile, Inc. (NASDAQ:ASTS) shares tumbled 15% after announcing a $1 billion convertible note offering. The announcement added drag to the entire space sector. 

In mid-January, analysts at B. Riley Securities downgraded AST SpaceMobile from Buy to Neutral but raised its price target to a Street-high $105, representing roughly 20% upside from current levels. 

Despite Thursday's slip, ASTS stock has gained about 15% ...