Space-themed ETFs have rallied since SpaceX's blockbuster IPO last Friday, while newer space stocks have lagged. According to Strategas ETF Research, thematic ETFs now total 400 funds worth $300 billion, with space, uranium, blockchain, and aerospace and defense among the top performers over the past four days. The old space trade, including names like GE up 7%, Raytheon, Boeing, and General Dynamics, has outperformed the newer space trade, where most stocks were in the red over the same period. SpaceX itself appears to be drawing capital away from newer space companies, creating a bifurcation in the space trade.
NASA in Talks for Boeing Starliner to Fly 10 or More New Missions
NASA and Boeing are in talks about using Boeing's Starliner vehicle to handle 10 or more new flights to low-Earth orbit in the coming years, The Wall Street Journal reported Friday. The Starliner has not flown since summer 2024, when performance problems including failed thrusters that posed safety risks left two astronauts stuck on the International Space Station for months; the astronauts returned to Earth on SpaceX's Crew Dragon vehicle, and the Starliner came back empty. SpaceX's Crew Dragon has been the only certified vehicle to carry NASA astronauts to the space station from the U.S., but SpaceX has stopped making new Dragon ships and has not said publicly when it plans to stop operating the ship. NASA said Friday it awarded SpaceX three additional astronaut missions to the space station using Crew Dragon, flights worth an average of $315M each and running through 2030. Few other options exist for flights to low-Earth orbit: Northrop Grumman has a cargo capsule that flies to the space station for NASA but not a human-rated one, while Russia flies vehicles to the ISS that handle crews and cargo.
Virgin Galactic pushes first commercial spaceflight to February, keeps 2027 cash flow target
Virgin Galactic has delayed its first commercial spaceflight to February 2027 while maintaining its projection for positive quarterly cash flow within 2027. CEO Michael Colglazier said the schedule shift stems from modest time duration extensions across hundreds of small installation tasks, with no single issue driving the push. The company reported its recent tranche of spaceflight expeditions at the $750,000 price point was oversubscribed, adding over $50 million to expected future spaceflight revenue, and plans to open a new tranche this fall at higher price points. CFO Douglas Ahrens said Virgin Galactic raised $134 million through its ATM during the second quarter, ended the period with $286 million in cash, cash equivalents, and marketable securities, and reduced the principal balance on its 2027 and 2028 notes by $93 million. Third-quarter revenue is expected to be approximately $400,000, with free cash flow projected between negative $95 million and $100 million, while the company continues to forecast a flight rate of 10 or more spaceflights per month by the end of the second quarter of 2027.
SpaceX surges 11% after Argus upgrade, lifting space stocks
SpaceX shares jumped 11% to $127.49 after Argus upgraded the stock to Buy with a $160 price target, citing rapid growth in AI computing capacity. The upgrade reversed earlier selling pressure tied to the company's post-IPO share-lockup expiration and heavy capital spending disclosed in its first quarterly report. Peers rallied in sympathy, with Intuitive Machines up 9% to $16.25, Rocket Lab up 8% to $81.56 after completing its 92nd Electron mission, AST SpaceMobile up 5% to $70.68, Virgin Galactic up 6% to $3.12, and Planet Labs up 5% to $23.86. A weaker-than-expected July jobs report showing a loss of 23,000 jobs versus an expected gain of 80,000 reduced expectations for a September Federal Reserve rate hike, boosting appetite for capital-intensive growth names. Despite the rally, SpaceX remains down 15% over the past month, and the newly unlocked float could still cap upside.
The Boeing Company
General Dynamics Corporation
GE Aerospace
RTX Corporation