Redwire Corp (NYSE:RDW) shares are trading lower Friday. The stock is giving back part of the sharp rally sparked in the previous session.

Redwire stock is facing resistance. Why are RDW shares declining?

Stock Slides After A Strong Run Yesterday

Redwire is retreating after a moving higher on Thursday, when news broke that Alphabet Inc (NASDAQ:GOOGL) and SpaceX were discussing a rocket‑launch arrangement tied to orbital data centers, The Wall Street Journal reported.

Supporters of orbital computing believe solar‑powered data centers in space could help address the growing power and land constraints facing Earth‑based facilities.

Strong First Quarter Results Provide A Foundation

Redwire's recent financial performance has also been part of the story. Last week, the company reported first-quarter revenue of $97 million, a 57.9% increase from the prior year. The company also posted a record backlog of $498.1 million and a book‑to‑bill ratio of 1.92.

Artemis Program Work Highlights Redwire's Role In Deep Space Missions

Redwire continues to expand its involvement in NASA's Artemis program. In April, the company said its optical imaging systems and ...