Key Takeaways

• New Street Research initiated coverage on 10 space industry stocks, assigning Buy recommendations to Rocket Lab, Viasat, EchoStar, and Space42.
• SpaceX aims to go public mid-2026 at a potential $2 trillion valuation.
• The Starship launch system could slash orbital delivery costs by 90% versus SpaceX’s own Falcon 9.
• Rocket Lab shares have surged 415% in the past year, with 80% of analysts rating it a Buy.
• Morgan Stanley projects the space sector could hit $1 trillion in value by 2040.

New Street Research has initiated coverage across 10 companies operating in the space sector, issuing Buy recommendations for four of them. The timing coincides with heightened market interest as SpaceX prepares for its highly anticipated public debut.

SpaceX is eyeing a mid-2026 initial public offering that could generate up to $75 billion in proceeds. At a potential valuation approaching $2 trillion, the listing would rank among history’s largest market debuts. New Street indicated it will initiate SpaceX coverage before the company goes public.

The firm characterizes space as “the next frontier,” projecting it could unlock trillions in economic value throughout the coming decades. New Street believes orbital systems will reshape sectors spanning telecommunications, national security, and artificial intelligence infrastructure.

Alphabet and SpaceX have both signaled plans to deploy AI computing facilities in space. Military and defense-focused space applications are projected to expand significantly in coming years.

Falling launch economics represent a critical catalyst for industry expansion. SpaceX’s Falcon 9 decreased space access costs by over 95% compared to the Space Shuttle era. The company’s next-generation Starship platform could deliver an additional 90% cost reduction versus Falcon 9.

New Street’s Preferred Space Investments

The four stocks receiving Buy ratings from New Street are Rocket Lab, Viasat, EchoStar, and Space42, headquartered in the UAE.

Rocket Lab stands out as the sole Western competitor to SpaceX in commercial launch services. The stock has rocketed 415% higher over the trailing 12 months. Analyst consensus targets approximately $105 per share, while New Street establishes its price objective at $150. Shares concluded Wednesday’s session at $124.15.

Rocket Lab USA, Inc., RKLB

Roughly 80% of Wall Street analysts tracking Rocket Lab maintain Buy recommendations. The company is projected to achieve profitability by 2028.

Viasat and Space42 earned recognition for their spectrum portfolios — the radio frequencies essential for transmitting communications and data. EchoStar maintains an ownership position in SpaceX while also controlling valuable spectrum licenses.

Satellite communications providers AST SpaceMobile, SES, and Iridium were assigned Hold ratings. Eutelsat, Planet Labs, and Telesat received Sell recommendations.

Industry Outlook and Considerations

Morgan Stanley forecasts the global space economy could reach $1 trillion by 2040. However, analysts emphasize significant risks accompany the sector — substantial capital requirements, heavy dependence on government contracts, and intricate technological challenges.

Lockheed Martin stands as one of the industry’s dominant participants. Space-related operations contribute over 15% of company revenue, with additional involvement in hypersonic weapons and satellite production through a joint venture with Boeing.

L3Harris broadened its space capabilities via the 2023 purchase of Aerojet Rocketdyne, which at the time was one of just two domestic manufacturers of large rocket propulsion systems.

AST SpaceMobile is developing technology to enable standard smartphones to communicate directly with satellites. While the company has secured partnerships with wireless carriers, it faces substantial expenses to deploy its complete satellite constellation.

Rocket Lab currently trades at 111 times forward 12-month sales. New Street’s $150 price target incorporates assumptions including 30 times anticipated 2030 operating earnings.

EchoStar shares finished Wednesday at $133.23, compared to New Street’s $161 target. Viasat closed at $70.58, versus the firm’s $100 price objective.

Key Takeaways

• America’s three largest wireless carriers—AT&T, Verizon, and T-Mobile—are creating a collaborative venture to leverage satellite technology for eliminating cellular coverage gaps nationwide.
• Shares of AST SpaceMobile climbed approximately 2.1% following the announcement, after reaching nearly 5% gains earlier in the session.
• AST SpaceMobile maintains existing partnerships with both AT&T and Verizon, positioning the joint venture as confirmation of its direct-to-device satellite approach.
• The space communications company requires between 45 and 60 operational satellites for full commercial deployment but operates only six currently, with progress hampered by a Blue Origin launch mishap in April.
• First-quarter 2026 financial results significantly underperformed projections—posting a loss of $0.66 per share versus the anticipated $0.21 loss—though management maintained its ambitious $1 billion revenue forecast for 2027.

In an unprecedented move, AT&T, Verizon, and T-Mobile—fierce competitors in the wireless market—revealed plans Thursday to establish a joint venture aimed at eliminating cellular connectivity gaps throughout the United States through satellite-powered networks. The telecommunications giants intend to combine their spectrum assets to enhance network capacity and expand satellite operators’ customer reach.

The partnership remains contingent upon finalizing a comprehensive agreement, and each carrier retains the flexibility to pursue independent connectivity initiatives.

AST SpaceMobile benefited immediately from the disclosure. Shares of ASTS gained 2.1% during early Thursday market activity, following an earlier spike approaching 5% immediately after the news broke.

AST SpaceMobile, Inc., ASTS

The strategic significance is considerable. AST SpaceMobile has established commercial agreements with both AT&T and Verizon to provide direct-to-smartphone connectivity—eliminating the need for specialized equipment. This newly announced joint venture essentially confirms the viability of AST’s strategic direction: delivering 5G-grade voice communications, data transmission, and video streaming capabilities via low Earth orbit satellites.

Chief Executive Abel Avellan expressed optimism regarding the development. “AST SpaceMobile is happy to see how the industry is preparing to enable space-based cellular broadband connectivity to every American,” he said. “We plan to be a key enabler of this transformation.”

The Satellite Deployment Challenge

A significant obstacle remains. AST SpaceMobile currently operates just six satellites, while requiring 45 to 60 functioning units to deliver commercial service across northern latitudes. The company projects achieving this milestone by year-end 2025.

That schedule suffered a setback in April following a failed Blue Origin launch mission that was scheduled to deploy an AST satellite. The carriers explicitly stated their intention to collaborate with multiple satellite providers—meaning AST SpaceMobile cannot afford significant delays.

Competitive dynamics are intensifying. SpaceX has committed to launching Starlink Mobile service before 2027 concludes, while Amazon entered the sector through its Globalstar acquisition, targeting a 2028 market entry.

William Blair, maintaining its Market Perform stance on ASTS this week, observed substantial stock volatility—including a 10% after-hours decline in one recent trading session that reversed a 10% increase from the previous day. Notwithstanding these fluctuations, ASTS has surged approximately 204% over the trailing twelve months and commands a market capitalization near $32 billion.

First Quarter Performance Falls Short

AST SpaceMobile’s recently reported first-quarter 2026 financial performance significantly underperformed Wall Street expectations. The company recorded an earnings per share loss of $0.66 compared to consensus estimates of a $0.21 loss. Revenue reached $14.7 million, falling short of analyst projections of $37.48 million.

Notwithstanding the disappointing results, AST SpaceMobile maintained its revenue guidance and highlighted advances in satellite technology development, which helped stabilize investor sentiment following the earnings release.

Management also confirmed its $1 billion revenue objective for 2027 during the quarterly earnings conference call. William Blair indicated its belief that favorable developments have emerged concerning the New Glenn rocket anomaly investigation, although AST SpaceMobile faces restrictions on public disclosure of specifics.

Key Takeaways

• Treasury Secretary Scott Bessent revealed expectations for a substantial Boeing aircraft order from China coinciding with President Trump’s Beijing summit.
• Boeing (BA) shares advanced 1.2% in premarket sessions Thursday after Bessent’s CNBC interview aired.
• Negotiations extend to increased Chinese acquisitions of American energy products and agricultural commodities.
• Officials from both nations are discussing innovative investment frameworks, including proposed “Board of Trade” and “Board of Investment” mechanisms.
• Bessent emphasized the strategy focuses on increasing American exports to China instead of reducing import volumes.

Boeing (BA) shares gained 1.2% during Thursday’s premarket session following remarks from Treasury Secretary Scott Bessent, who indicated China plans to announce a substantial aircraft purchase from Boeing while President Donald Trump’s delegation conducts meetings in Beijing.

The Boeing Company, BA

“I think we’re going to see the large Boeing orders,” Bessent stated during his appearance on CNBC’s “Squawk Box.”

These remarks emerged as American and Chinese representatives launched a two-day economic summit aimed at recalibrating financial relationships between the planet’s two dominant economies.

The anticipated Boeing purchase is positioned as a centerpiece achievement from the Beijing negotiations. Such an announcement would represent a significant pivot following years of commercial tensions between the two superpowers.

Bessent indicated the scope of discussions reaches well beyond aviation. Enhanced Chinese procurement of American energy resources and farm products remains under consideration, alongside innovative structures enabling Chinese capital deployment in non-critical American industries.

Energy Imports and Investment Structures Under Discussion

Regarding energy commerce, Bessent noted Chinese representatives have shown appetite for increased purchases of American liquefied natural gas, especially as additional export infrastructure becomes operational.

Agricultural commerce features in the dialogue as well, though Bessent observed that soybean purchase obligations are essentially predetermined through current agreements.

Both governments are examining two novel bilateral oversight mechanisms: a “Board of Trade” and a “Board of Investment.” These structures would facilitate Chinese capital deployment in America while avoiding national security examination processes.

“What we want to do is make sure that these investments don’t get referred to CFIUS,” Bessent explained, referencing the Committee on Foreign Investment in the United States.

He additionally dismissed speculation regarding enormous capital pledges from Beijing. “I’m not sure where this $1 trillion investment number has come from,” he remarked.

Trade Balance Restoration Remains Primary Objective

Bessent articulated the overarching purpose driving the negotiations: achieving equilibrium in bilateral commerce between both nations.

“That’s the goal here, and that can be done one of two ways — either the U.S. receives fewer imports from China, or we sell more to China,” he explained. “We’re trying to balance that out.”

His comments suggested a preference toward expanding American export volumes rather than implementing import restrictions.

Boeing has traditionally served as a primary recipient of commercial benefits from U.S.-China trade agreements. Chinese aviation companies constitute a substantial portion of global demand for Boeing’s passenger aircraft.

The aerospace manufacturer has navigated challenging conditions throughout recent years — manufacturing complications, regulatory oversight intensification, and fluctuating market demand have collectively pressured the enterprise. A significant Chinese aircraft order would deliver meaningful operational momentum.

Boeing (BA) shares advanced 1.2% during Thursday’s premarket trading. The official order revelation, should it materialize, is anticipated during Trump’s ongoing Beijing diplomatic mission.

The Senate Banking Committee is holding its markup hearing for the Digital Asset Market Clarity Act — more commonly known as just the Clarity Act — on Thursday, kicking off a key process for the long-awaited market structure bill.

Over the course of Thursday’s hearing, the 24 Senators on the committee will debate and vote on dozens of proposed amendments to the text released past midnight Tuesday morning. Ultimately, the lawmakers will vote on whether or not to advance the bill to the full Senate.

The bill still has a lengthy journey to becoming a law; if the Banking Committee does advance the bill, it will have to be merged with the Senate Agriculture Committee version of the legislation, debated and voted on the Senate floor, reconciled with the House of Representatives’ version of the bill and voted on in that chamber of Congress before it can go to the president’s desk.

Lawmakers are moving ahead with Thursday’s vote after finding a compromise on stablecoin yield they found acceptable. Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.) negotiated the agreement, circulating text at the beginning of the month. Outstanding issues include whether the bill will ultimately include an ethics provision barring senior government officials from having business ties to the crypto industry. According to a survey commissioned by CoinDesk, 73% of Americans believe senior government officials should not have business ties to the industry, referring to senior officials at large. The impetus for including such a provision in the bill is President Donald Trump and his family’s ties to World Liberty Financial and other cryptocurrency businesses.

And while lawmakers have come to a compromise on stablecoin yield, the banking industry as a whole maintains that the stablecoin yield provisions are still too tilted toward the crypto industry. State bank organizations have filed letters to lawmakers, and bankers themselves have sent some 8,000 letters to Senators, a source familiar said.

CoinDesk will be covering the hearing live as the lawmakers work through the hearing.

A cohort of 20 FTX victims across five jurisdictions has filed a $525 million lawsuit against Fenwick & West LLP, asserting that the renowned Silicon Valley law firm helped conceal the collapse of the crypto exchange. The complaint was filed in the U.S. District Court for the District of Columbia and names Fenwick alongside six individual defendants. The plaintiffs contend that Fenwick’s involvement lent an aura of legitimacy to FTX that deterred withdrawals and contributed to the financial ruin of the victims.

At the heart of the suit are statements attributed to Nishad Singh, FTX’s former director of engineering, who pleaded guilty to fraud charges and testified at the criminal trial of Sam Bankman-Fried. Singh allegedly told Fenwick attorneys that customer funds were being misused, but the firm purportedly advised on how to conceal the activity rather than distance itself from the matter.

The complaint goes further to claim Fenwick helped establish North Dimension Inc., a Delaware shell company that posed as an electronics retailer but allegedly funneled more than $3 billion in stolen customer funds. It also accuses Fenwick of supporting FTX’s Signal auto-delete messaging policy, a system federal prosecutors cited as a tool that impeded regulators and investigators from uncovering the fraud.

Related context: No further commentary is provided within this article, but the broader coverage links to ongoing reporting on FTX-related developments.

Key takeaways

• The plaintiffs accuse Fenwick & West of assisting in concealing FTX’s misappropriation of customer funds and of creating corporate structures to obscure transfers.
• testi­mony cited in the complaint references Nishad Singh’s admissions and claims that Fenwick advised on how to hide the misconduct rather than intervening.
• The suit implicates a Delaware shell entity, North Dimension Inc., as a vehicle for moving funds, with allegations of more than $3 billion in diverted customer assets.
• The complaint asserts seven claims, including malpractice, fraud, and gross negligence, seeking more than $525 million in compensatory damages, plus recovery of legal fees and punitive damages against two Fenwick partners.
• The case unfolds in the wider regulatory and prosecutorial scrutiny surrounding FTX, underscoring professional-liability risks for firms affiliated with crypto-enabled fraud cases.

Fenwick’s role under scrutiny and the examiner’s findings

A court-appointed bankruptcy examiner, whose 2024 report reviewed more than 200,000 documents, concluded that Fenwick appeared to be “deeply intertwined in nearly every aspect of FTX Group’s wrongdoing.” The examiner asserted that Fenwick helped create the corporate structures used to obscure transfers, formed shell entities, and drafted backdated agreements intended to legitimize illicit movements of funds. The lawsuit cites these conclusions as corroborating the plaintiffs’ claims of professional misconduct and complicity in the fraud.

According to the plaintiffs, Fenwick’s involvement extended beyond advising on transactions to shaping the structure and messaging around the scheme. The complaint maintains that Fenwick drafted and supported arrangements that facilitated the concealment of customer fund misappropriation, a narrative reinforced by Singh’s testimony and the examiner’s findings. For the plaintiffs, these elements collectively underpin a theory of liability grounded in sustained professional complicity rather than isolated missteps.

Post-bankruptcy actions and ongoing litigation context

Following FTX’s bankruptcy filing in November 2022, Fenwick removed FTX mentions from its public site and reportedly engaged high-profile defense counsel at Gibson, Dunn & Crutcher in anticipation of civil litigation. The plaintiffs’ filing emphasizes these moves as indicative of the firm’s awareness of potential liability and regulatory exposure linked to its work for FTX and Alameda Research.

In a separate but related legal development, a federal judge previously denied Sam Bankman-Fried’s bid for a new trial, ruling that his claims of newly available evidence were unfounded. The judge noted that the asserted witnesses and purported evidence were known well before the trial and did not alter the core record. While not a direct ruling on Fenwick, the decision sits within the broader FTX litigation landscape and the ongoing enforcement and courtroom activity surrounding the affair.

Regulatory, enforcement, and professional-liability implications

Beyond the specifics of the Fenwick suit, the allegations highlight critical considerations for law firms operating in the crypto space. The case casts a spotlight on the professional responsibilities of lawyers who advise high-profile crypto platforms and the extent to which law firms may be drawn into allegations of facilitating regulatory evasion or misrepresentation. For financial institutions, exchanges, and investors, the proceedings underscore the potential for heightened scrutiny of outside counsel engagements, due diligence practices, and the governance structures that underpin major crypto entities.

From a regulatory perspective, the matter intersects with broader enforcement themes across U.S. authorities and international frameworks. While the U.S. focus remains on criminal and civil accountability for misrepresentation and misuse of customer assets, related discussions at the regulatory level touch on licensing, oversight of crypto-related financial activity, and the boundaries of professional conduct for firms advising on such platforms. The evolving policy landscape continues to shape how professional services firms participate in crypto markets, including issues related to potential conflicts, backdating of agreements, and the creation of shell entities intended to obscure fund flows.

What to watch next

The case against Fenwick & West is positioned to contribute to ongoing debates about accountability in the crypto service ecosystem, especially for firms that provide legal and regulatory guidance to exchanges and related entities. As the District of Columbia case advances, observers will be watching for the court’s handling of the seven claims, any forthcoming discovery related to the North Dimension structure, and potential settlement dynamics that could influence professional liability standards for law firms involved in high-profile crypto cases.

Closing perspective

As the FTX narrative continues to unfold in courtroom and regulatory settings, the Fenwick suit illustrates the tightening nexus between crypto operations, legal counsel, and enforcement outcomes. The outcomes of this litigation could have meaningful implications for how law firms support or scrutinize exchanges’ governance, fund flows, and compliance frameworks in an increasingly regulated and scrutinized crypto market.

CoinDesk Indices presents its daily market update, highlighting the performance of leaders and laggards in the CoinDesk 20 Index.

The CoinDesk 20 is currently trading at 2169.26, up 0.4% (+8.61) since 4 p.m. ET on Wednesday.

Thirteen of 20 assets are trading higher.

Leaders: TAO (+1.7%) and XRP (+1.6%).

Laggards: ICP (-5.2%) and NEAR (-1.7%).

The CoinDesk 20 is a broad-based index traded on multiple platforms in several regions globally.

Bitcoin’s onchain metrics are flashing their most constructive signals since early February, but underlying seller behavior and derivatives positioning suggest the road to new highs will not be easy, Bitfinex shared in an analyst note to CoinDesk on Thursday.

Long-term holders, whose bitcoin holdings have increased by 300% since the end of 2025 to nearly 4 million tokens, have started taking $180 million in profits per day since BTC rallied to the over the $82,000 level on May 11 before dropping from $81,000 to the lower $79,000s on Thursday.

“That is a moderate amount compared with past cycles and suggests current selling is controlled,” they said, explaining that the concern lies in daily realized losses, which they said still average $479 million. ”In quieter periods, this figure sits closer to $200 million. Until losses drop to the $200 million band, the onchain recovery is not fully confirmed.”

The gamma trap

Supporting this cautious outlook is a “gamma trap” identified in the derivatives market. Data from Glassnode shows nearly $2 billion in short gamma options positions clustered around the $82,000 strike price. As bitcoin trades within this zone, market makers are forced to hedge their positions, initially amplifying volatility and potentially “squeezing” the price toward $82,000, Bitfinex said in its note.

Jason Fernandes, co-founder at AdLunam, noted that this gamma concentration creates a deceptive environment. “Dealer hedging can accelerate price toward that level, but once the squeeze exhausts itself, the same positioning can suppress momentum and act as resistance,” Fernandes told CoinDesk. “In other words, gamma is currently amplifying the move, not necessarily validating it.”

While onchain data shows improvement, the analyst said, “corporate buyers, by contrast, have gone quiet. Major players bought very little bitcoin last week, with an 80% drop in purchase volume compared with last month.”

A major red flag is waving

Fernandes points to the divergence between price and institutional flows as a major red flag. Despite the recovery, U.S. Spot Bitcoin ETFs recorded a $635 million outflow on May 13, the largest single-day exit since January.

Mati Greenspan, a market analyst and founder of Quantum Economics, noted that the current “cost-basis battlefield” between $79,000 and $85,000 looks more like a transition zone than a ceiling.

Beyond technicals, the broader economic landscape remains a hurdle. On May 13, the U.S. Senate confirmed Kevin Warsh as the new Federal Reserve Chair amidst rising 3.8% inflation. Fernandes noted that the market is now pricing in a “higher for longer” reality.

“Kevin Warsh has already set expectations that there is unlikely to be a rate cut this year—it’s possible there may even be a rate hike,” Fernandes said. “I just don’t see BTC reaching a new ATH this year unless something radically changes geopolitically.”

Given the elevated realized losses and the lack of corporate support, which saw an 80% drop in purchase volume last week, Bitfinex analysts said they anticipate a quick jump to the $82,000 to $84,000 range, followed by a “period of neutralization.”

Fernandes concluded that the current structure looks like “incomplete capitulation.” Until the market can flush out the $479 million in daily realized losses and reclaim institutional conviction, the $85,000 level remains the cycle’s primary “fair-value battlefield.”