Eyeing This Aerospace IPO After White House Order
Here’s a recent IPO that meshes with our thematic framework and raises an eyebrow.
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In Tuesday's Portfolio video, we shared our thoughts on the M&A developments at Alphabet (GOOGL) and ServiceNow (NOW) , and we are now turning that gaze to the IPO market.
As we’ve made clear, we continue to watch both with much interest, given our positions in Morgan Stanley (MS) and Bank of America (BAC) , to gauge further upside potential even after just lifting our targets for both stocks.
In the table above, we can see the stock price performance of the IPOs that have priced thus far in December. As you can probably guess, given the upcoming holidays and the number of full trading days left in the month, what we see above is likely to be all of the IPOs we get this month. There are a few disappointments in post IPO trading, notably with ginger beer company Reed’s Inc. (REED) and fintech company Wealthfront (WLTH), but for the most part, the action is supportive of the IPO market.
While, as a rule, the Portfolio does not invest in IPOs, we will revisit them once they have seasoned some, and that includes getting past the IPO lockup expiration, which on average lasts about 180 days.
A lot can happen between now and then, but we will share that, among the December 2025 IPO class, given our Safety & Security investing theme, we are intrigued with Starfighters Space (FJET) shares. The company operates the world's only commercial fleet of flight-ready F-104 supersonic aircraft and is the only commercial company with the capability to fly at MACH 2 while launching payloads into space. Starfighters also aims to benefit from hypersonic research in commercial and defense applications.
Looking at the company’s recent filings, however, we see no revenue and only expenses, which is not something we like to see.
Subsequent to the Starfighter IPO, on December 18, 2025, the White House issued an executive order titled “Ensuring American Space Superiority,” which lays out a policy framework to strengthen U.S. leadership in space exploration, national security and commercial space development. Part of that framework includes “enhancing sustainability and cost-effectiveness of launch and exploration architectures, including enabling commercial launch services and prioritizing lunar exploration.”
That is what landed FJET shares on our radar. While there are several hurdles ahead, including more than a mere path to becoming a revenue generator and posting a few quarters as a public company, policy mandates are a part of our thematic framework. Should the company start to clear those hurdles, that could land them in the Portfolio’s Bullpen. For now, we’ll continue to read up on things and see how that policy framework progresses.
At the time of publication, TheStreet Pro Portfolio was long GOOGL, NOW, MS and BAC.
