On Monday, it surged 371%, and on Tuesday, it plummeted 59%! This "space concept" new stock attracts all attention, operating the world's only commercial supersonic fleet
The newly listed space concept stock Starfighters Space has recently experienced extreme fluctuations in its stock price, soaring 371% on Monday, only to plummet nearly 60% on Tuesday. Market analysts believe that the low float and speculative business prospects are the main reasons for the extreme volatility in the stock price. The company operates the world's only commercial supersonic fleet, and although it raised $40 million through its IPO, financial data shows that it has had no operating revenue in the past three years
Commercial aerospace is becoming the focus of competition in the capital market, with an aerospace company named Starfighters Space attracting the attention of the entire market due to its astonishing stock price volatility in its first week of listing.
On Monday, December 22, Starfighters Space (FJET) surged by 371%, closing at $31.50. This dramatic price fluctuation occurred after the company completed its initial public offering (IPO) last week, raising $40 million through a Class A issuance on the New York Stock Exchange.
However, following the surge, the stock price experienced a rollercoaster ride. On Tuesday, the company's stock plummeted by 59%, closing at $12.94, erasing most of the gains from the previous trading day.
Market analysts attribute the severe price fluctuations to the company's low stock float and its fundamentals still being in the early stages of commercialization. This event directly reveals to investors the potential high returns and high risks of investing in small, newly listed companies, especially in the space exploration sector, which is highly scrutinized but whose business models have not yet been fully validated.
Stock Price Turmoil in the First Week of Listing, from Surge to Halving
Since trading began last Thursday, Starfighters Space's stock price has been extremely volatile. According to public information, the company's IPO issuance price was $3.59 per share.
On its first trading day (last Thursday), the stock opened at $10, reaching a high of $17.72 during the day, and ultimately closing at $8.50. However, market enthusiasm quickly cooled on Friday, with the stock price falling back to $6.69.
Entering this week, the stock staged an astonishing rebound on Monday, soaring 371% to $31.50, but then sharply declined on Tuesday, plummeting nearly 60%, resulting in a significant evaporation of market value. This rollercoaster-like trend has made it one of the most watched small-cap stocks in the recent market.
Low Float and Zero Revenue: The Reasons Behind the Stock Price Volatility
Analysts believe that there are two key factors behind the severe fluctuations in Starfighters Space's stock price. The first is its low number of publicly traded shares. According to publicly disclosed data, the company has a total share capital of 21.7 million shares, but only 11.1 million shares were publicly issued. A relatively small float means that even medium-sized buy and sell orders can lead to disproportionately large price swings.
Secondly, the company's financial fundamentals also make it a typical speculative target. Reports indicate that Starfighters Space has not recorded any revenue in the past three years and reported a loss of $7.9 million in 2024 For a newly listed company that has yet to generate revenue, its valuation relies more on investors' future expectations than on current performance, which itself sets the stage for significant fluctuations in stock prices. As pointed out by Barron's, small-cap IPOs are typically high-risk bets, and Starfighters Space is no exception.
Operating the F-104 Fleet, Targeting the Space Launch and Defense Market
Despite the lackluster financial data, Starfighters Space has a unique business model. The company is headquartered at NASA's Kennedy Space Center and owns and operates a fleet of seven Lockheed F-104 "Starfighters," which is the largest commercial supersonic aircraft fleet in the world. Notably, the F-104 is a model that NASA retired in 1975.
The company's core business is the development of a project called "StarLaunch," which plans to use these jets capable of flying at twice the speed of sound (Mach 2) to deploy satellites and small payloads into space. Additionally, the company provides pilot and astronaut training, in-flight testing, and other services for the defense and private sectors. Its current clients include Lockheed Martin, General Electric (GE), Innoveering, Space Florida, and the U.S. Air Force Research Laboratory.
Rick Svetkoff, the company's CEO and founder, stated in a recent announcement: "The company's public listing reflects the growing interest among investors in companies that can provide real-world aerospace capabilities aligned with national security, space access, and advanced testing needs."
Company Claims Focus on Long-Term Value, Space Sector in the Spotlight
In the face of significant stock price volatility, a spokesperson for Starfighters Space told Barron's: "As a newly listed company, we have garnered significant attention from investors since our listing on the NYSE American. The company will continue to focus on executing its business plan, supporting customer missions, and creating long-term value as a public company."
From a broader market perspective, investor enthusiasm for space concepts is heating up. Other space companies have also performed well this month, such as Rocket Lab, which saw its stock price soar after successfully completing multiple launches and securing a large contract with the U.S. Space Force. Meanwhile, speculation is circulating about Elon Musk's SpaceX potentially going public. This industry-wide excitement may also be one of the reasons why new stocks like Starfighters Space can attract significant speculative interest
