February 19, 2026 04:54 PM GMT Space | North America Varda Space: Space Manufacturing, Pharma Made in Orbit One day, your doctor's prescription may have been produced in the microgravity of space. The benefits of manufacturing complex compounds in space have been documented for decades, but never commercialized. Please note that we are reposting due to earlier technical issues with file size. Is the Space Economy about to get a pharmaceutical sector? Morgan Stanley does and seeks to do business with compani ...

Group 1 - Starfighters Space Inc (NYSE:FJET) shares have experienced a significant increase of 87% over the past week, following a decline of over 50% at the beginning of 2026, indicating a potential recovery phase for the stock [1][4] - The recent rally in FJET stock is attributed to technical support, which may have triggered short-covering and dip-buying among traders [1][4] - The stock is currently trading 28.3% above its 20-day simple moving average (SMA), reflecting strong short-term momentum, with a 12-month increase of 10.82% [7] Group 2 - The overall market sentiment has shifted positively, as evidenced by the iShares Russell 2000 ETF rising approximately 1%, indicating renewed interest in small-cap and speculative growth stocks [2] - Reports regarding SpaceX potentially pursuing a $1.5 trillion IPO have negatively impacted other listed space stocks, leading investors to reassess valuations within the sector [3] - Starfighters Space operates from NASA's Kennedy Space Center and is involved in various aerospace activities, including air launch operations and hypersonic testing, positioning itself as a key player in the evolving space economy [5][6]

Core Viewpoint - The SPDR S&P Aerospace & Defense ETF (XAR) employs an equal-weight structure across its 41 holdings, which significantly alters its risk profile compared to market-cap weighted funds, allowing smaller aerospace suppliers and emerging space companies to have the same impact as larger firms like Boeing and Lockheed Martin [2][3]. Portfolio Fit - XAR is designed for investors seeking concentrated exposure to the aerospace and defense sector, particularly those who believe smaller companies will outperform larger ones. With 98.7% of its allocation in industrials, XAR acts as a tactical investment rather than a core holding [3]. Performance and Returns - The equal-weight structure of XAR resulted in a 54.17% gain over the past year, outperforming market-cap weighted alternatives by capitalizing on the growth of smaller aerospace suppliers amid rising defense spending [4][7]. Volatility and Risk - The focus on smaller companies introduces higher volatility, as evidenced by a recent 4.99% monthly decline when market sentiment turned against aerospace stocks. Companies like Rocket Lab exhibit greater volatility, leading to sharper drawdowns during market corrections [5]. Portfolio Complexity - Boeing's financial struggles, with a reported negative EBITDA of $3.2 billion, highlight the complexity of the portfolio, as it shares equal weight with more profitable contractors like Lockheed Martin, which posted an EBITDA of $8.3 billion. This structure results in varied quality among holdings while preventing any single underperforming company from dominating the risk profile [6][7].

Group 1: SpaceX IPO and Competitive Landscape - Elon Musk plans to hold an initial public offering (IPO) for SpaceX in 2026, which is expected to significantly impact competitors in the space launch industry [1] - SpaceX's IPO valuation is projected to be around $1.5 trillion, which would provide substantial financial resources compared to competitors like Rocket Lab and United Launch Alliance (ULA) [1] - The anticipated $50 billion in new cash from the IPO would exceed Rocket Lab's entire market capitalization and be four times the annual revenue generated by ULA co-owner Lockheed Martin from its space business [1] Group 2: Threat to Telecom Industry - SpaceX's potential impact extends beyond the space industry, posing a threat to telecom companies such as AST SpaceMobile, AT&T, and Verizon Communications [2] Group 3: Starlink Business Growth - SpaceX's Starlink satellite internet service has over 9,000 satellites in orbit and 9.2 million paying customers, generating more than $10 billion in annual revenue [4] - The Starlink direct-to-cell (DTC) service has launched 650 satellites, covering 22 countries and connecting over 12 million users, making it the largest 4G coverage provider globally [5] - The total addressable market for Starlink DTC is estimated at 400 million users, indicating significant growth potential [6]

Core Insights - The Vanguard Small-Cap ETF (VB) and the State Street SPDR Portfolio S&P 600 Small Cap ETF (SPSM) are both low-cost options for investors interested in U.S. small-cap stocks, but they differ in portfolio composition and performance nuances [1] Cost & Size - Both VB and SPSM have an expense ratio of 0.03% [2][3] - As of February 12, 2026, VB has a 1-year return of 10.65% compared to SPSM's 10.28% [2] - SPSM offers a higher dividend yield of 1.53% versus VB's 1.27% [2] - VB has significantly larger assets under management (AUM) at $169 billion compared to SPSM's $14 billion [2] Performance & Risk Comparison - Over the past five years, VB experienced a maximum drawdown of -28.16%, while SPSM had a slightly lower drawdown of -27.95% [4] - An investment of $1,000 in VB would have grown to $1,260 over five years, while the same investment in SPSM would have grown to $1,216 [4] Portfolio Composition - SPSM tracks the S&P SmallCap 600 Index and includes 607 stocks, with top sectors being financial services (17%), industrials (16%), and consumer cyclical (15%) [5] - VB holds a broader portfolio of 1,324 stocks, with a focus on industrials (19%), technology (17%), and financial services (13%) [6] Investment Implications - VB's greater diversification, with more than twice the number of stocks as SPSM, may help limit risk associated with small-cap stocks [7] - VB's heavier allocation to technology (17% vs. 13% for SPSM) may lead to higher volatility but also greater long-term returns [8] - Both funds have shown similar total returns over 12 months and five years, but VB has slightly outperformed SPSM in both periods [9]

Group 1: Space Economy Overview - The space economy includes companies like SpaceX, Rocket Lab, and AST Space Mobile, which are in early stages and not yet profitable [1] - Established companies such as Lockheed Martin and Honeywell are highlighted as potential investment opportunities in the growing space economy [2] Group 2: Lockheed Martin - Lockheed Martin is recognized not only as a defense contractor but also as a key player in the space economy, involved in building space infrastructure and manufacturing satellites [5] - The company has a contract worth up to $1 billion from the Space Development Agency to produce 18 satellites for missile tracking capabilities [6] - Lockheed's space segment generated $13 billion in sales last year, with a backlog nearing $40 billion [7] Group 3: Honeywell - Honeywell is an industrial conglomerate contributing to space exploration through inertial navigation systems, sensors, and avionics for satellites and launch vehicles [8] - The company reported a 10% increase in defense and space sales in the fourth quarter, driven by elevated global demand [9]

Core Insights - The Vanguard Small-Cap ETF (VB) and Schwab U.S. Small-Cap ETF (SCHA) are both designed for diversified access to U.S. small-cap stocks through a passive, index-tracking approach, with subtle differences in cost, performance, and risk influencing investor choice [1] Cost & Size Comparison - VB has an expense ratio of 0.03%, while SCHA has a slightly higher expense ratio of 0.04% [2] - As of February 9, 2026, VB's one-year return is 12.49%, compared to SCHA's 16.27% [2] - VB offers a dividend yield of 1.27%, slightly higher than SCHA's 1.19% [2] - Assets under management (AUM) for VB is $169 billion, significantly larger than SCHA's $20 billion [2] Performance & Risk Comparison - Over five years, VB has a max drawdown of -28.16%, while SCHA has a deeper max drawdown of -30.79% [3] - The growth of $1,000 invested over five years is $1,292 for VB and $1,221 for SCHA [3] Holdings & Sector Focus - SCHA aims to mirror the Dow Jones U.S. Small-Cap Total Stock Market Index, holding 1,730 stocks with a focus on technology, financial services, and industrials [4] - VB tracks the CRSP US Small Cap Index, holding 1,324 stocks, with a focus on industrials, technology, and financial services [5] - Notable holdings for SCHA include Sandisk, Lumentum, and Rocket Companies, while VB's notable holdings are Rocket Lab, Sandisk, and Ciena [4][5] Investor Implications - Both ETFs provide diversified exposure to the small-cap segment, with over 1,000 holdings each, but differ in sector allocation and risk profile [6] - SCHA's focus on technology may contribute to its higher volatility, reflected in a higher beta and deeper max drawdown compared to VB [6] - Despite SCHA's turbulence, it has outperformed VB over the past 12 months, while VB has a slight edge in five-year total returns [7] - VB's larger AUM provides greater liquidity, making it easier for investors to buy and sell larger amounts without affecting the ETF's price [8] - Investors seeking greater tech exposure may prefer SCHA, while those looking for more liquidity may benefit from VB's larger asset base [9]

Core Viewpoint - Cisco Systems (CSCO) is demonstrating resilience in its stock performance amidst a broader tech sell-off, maintaining a strong position in the market ahead of its upcoming earnings report [1] Group 1: Stock Performance - Cisco stock is trading tightly and remains in a buy zone, indicating strong market interest and stability [1] - The company has experienced a technical breakout, transitioning from a legacy hardware provider to a player in artificial intelligence infrastructure [1] Group 2: Market Context - The Nasdaq composite is showing signs of distribution days clustering, which typically indicates selling pressure in the tech sector [1] - Cisco is highlighted as a leader in the Dow Jones alongside other companies like Halozyme and Toll Brothers, which are also in or near buy zones [1] Group 3: Earnings Outlook - Cisco has been upgraded based on an above-consensus profit and revenue outlook, suggesting positive expectations for its upcoming earnings report [1]

Core Viewpoint - SpaceX's recent acquisition of xAI highlights a shift in the aerospace industry towards profit-driven models, which may accelerate the development of space engineering [2][3]. Group 1: SpaceX and xAI Acquisition - SpaceX announced the acquisition of AI startup xAI, with an expected share price of approximately $527 and a valuation of $1.25 trillion [3]. - Elon Musk's net worth surpassed $850 billion, making him the first person in history to cross the $800 billion milestone [3]. - The merger is expected to enhance SpaceX's IPO prospects, with estimates suggesting a valuation exceeding $1.5 trillion and a fundraising target of over $50 billion, potentially setting a record for the largest IPO in history [3]. Group 2: Comparison with Other Companies - SpaceX's projected 2025 EBITDA is $8 billion, significantly lower than Saudi Aramco's 2018 net profit of $111 billion, indicating a disparity in current profitability [4]. - Other commercial space companies, such as Rocket Lab and China's Landspace, have valuations that are minor compared to SpaceX's, reflecting the latter's dominant position in the market [3][4]. Group 3: Challenges and Opportunities - The combination of AI and commercial space ventures presents unique challenges, including the high costs associated with Mars colonization and the current limitations in AI monetization [4]. - SpaceX's vision of a vast satellite system for a space computing center could provide a clearer commercial pathway, making it more appealing to investors [4][5]. Group 4: Technological and Market Dynamics - The deployment cost of space data centers is projected to be 6.7 times higher than ground-based centers, but if launch costs decrease significantly, parity could be achieved by 2030 [6]. - The increasing demand for AI and the limitations in power supply present a unique opportunity for space-based solutions, such as solar power from space [5]. Group 5: Competitive Landscape - Rocket Lab, while a significant player, has a market cap of around $43 billion, which is far less than SpaceX's projected valuation, highlighting the competitive dynamics in the commercial space sector [8]. - The challenges faced by Rocket Lab in developing reusable rockets further emphasize the technological gap between it and SpaceX [9]. Group 6: Support and Development - SpaceX's growth has been significantly supported by NASA, which provided critical technology and funding during its early stages [12][13]. - The collaboration between private and public sectors is crucial for the advancement of commercial space endeavors, with both the U.S. and China investing in their respective aerospace industries [15].

Core Viewpoint - The space sector is experiencing significant resistance in 2026, with investors shifting focus towards SpaceX's anticipated IPO, potentially valuing the company at $1.5 trillion, leading to a sell-off in established public space stocks [1]. Group 1: Market Dynamics - Investors are adopting a "wait-and-see" approach, hoarding liquidity to invest in SpaceX rather than established players [1]. - The high expectations surrounding the SpaceX IPO are not benefiting all companies in the sector, highlighting a valuation gap among space stocks [2]. Group 2: Stock Performance - Over the past month, many public space companies have faced substantial double-digit declines as capital flows towards SpaceX, with AST SpaceMobile showing resilience due to specific milestones [3]. - Rocket Lab is working on the reusable Neutron rocket but remains at a disadvantage with its current expendable Electron model, while Virgin Galactic struggles with high burn rates and low flight frequency [4]. Group 3: Competitive Landscape - As SpaceX's IPO looms, other space stocks are increasingly viewed as high-risk investments, overshadowed by SpaceX's potential market dominance [4].