Commercial aerospace is becoming a focal point in capital markets, with Starfighters Space Inc (FJET) drawing widespread attention for its dramatic stock price swings during its debut week.
On Monday, December 22, Starfighters Space surged as much as 371%, closing at $31.50. This extreme volatility followed its recent IPO on the NYSE American, where it raised $40 million through a Class A offering.
However, the rally was short-lived. On Tuesday, the stock plummeted 59% to $12.94, erasing most of the previous day's gains. Market analysts attributed the wild swings to the company's low float and early-stage commercialization efforts, highlighting the high-risk, high-reward nature of investing in small, newly public firms—especially in the speculative space exploration sector.
**From Soaring to Slumping: A Volatile Debut Week** Since its trading debut last Thursday, Starfighters Space has experienced extreme price fluctuations. The IPO was priced at $3.59 per share.
On its first day, shares opened at $10, peaked at $17.72 intraday, and closed at $8.50. By Friday, enthusiasm waned, with the stock dropping to $6.69.
This week, Monday saw a staggering 371% rebound to $31.50, only for the stock to crash nearly 60% on Tuesday. Such roller-coaster moves have made it one of the most closely watched small-cap stocks.
**Low Float & Zero Revenue: Drivers of Volatility** Two key factors explain the stock's wild moves. First, its limited public float: while total shares outstanding stand at 21.7 million, only 11.1 million were offered in the IPO. A small float amplifies price swings even with modest trading volumes.
Second, the company's financials make it a speculative play. Starfighters Space reported no revenue over the past three years and a $7.9 million loss in 2024. For a pre-revenue firm, valuation hinges on future expectations rather than current performance, inherently inviting volatility. As noted, small-cap IPOs like this are high-risk bets.
**F-104 Fleet: Targeting Space Launch & Defense Markets** Despite weak financials, Starfighters Space boasts a unique business model. Based at NASA's Kennedy Space Center, it owns and operates a fleet of seven Lockheed F-104 "Starfighter" jets—the world's largest commercial supersonic fleet. Notably, the F-104 was retired by NASA in 1975.
Its core project, "StarLaunch," aims to deploy satellites and small payloads into space using these Mach 2-capable jets. The company also provides pilot/astronaut training and in-flight testing services for defense and private clients, including Lockheed Martin, GE Aerospace (GE), Innoveering, Space Florida, and the U.S. Air Force Research Lab.
CEO and founder Rick Svetkoff stated, "Our public listing reflects growing investor interest in firms offering real-world aerospace capabilities aligned with national security, space access, and advanced testing needs."
**Focus on Long-Term Value Amid Space Sector Hype** Addressing the volatility, a Starfighters Space spokesperson emphasized the company's commitment to executing its business plan and creating long-term value as a public entity.
Broader market enthusiasm for space-related stocks is rising. Rocket Lab, for instance, has surged after successful launches and a major U.S. Space Force contract. Speculation about SpaceX's potential IPO has also fueled interest, likely contributing to the speculative buzz around newcomers like Starfighters Space.