US space stocks rise after SpaceX merges with xAI at $1.25 trillion valuation

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U.S. space-related stocks climbed after SpaceX announced a merger with xAI, valuing the combined entity at $1.25 trillion. The deal, unveiled by Elon Musk, signals a major push to expand artificial intelligence infrastructure beyond Earth and into orbit, a vision that has energized investors across the emerging space sector.

Shares of listed space companies rallied following the announcement. Rocket Lab, Planet Labs, AST SpaceMobile, Intuitive Machines and Redwire all posted gains, reflecting growing optimism that space-based infrastructure could play a central role in the next phase of AI development. Musk has said that within two to three years, generating AI computing power in space could become more cost-effective than on Earth, thanks to near-constant solar energy and reduced cooling constraints.

The merger brings together rocket launches, satellite networks, AI software and communications platforms under one umbrella, forming what Musk described as a vertically integrated innovation powerhouse. Analysts said the move strengthens SpaceX’s positioning ahead of a potential public offering later this year, which could value the company above $1.5 trillion. The announcement has also fueled expectations of increased investment in space technology, driven by both government defense spending and private-sector demand for AI-related infrastructure.

PayPal shares sink after CEO exit and weak 2026 profit outlook

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Shares of PayPal plunged after the company replaced CEO Alex Chriss and issued a disappointing profit outlook for 2026, rattling investors and raising fresh doubts about its turnaround strategy. The board named Enrique Lores, currently head of HP, as the new president and chief executive, saying the pace of change under Chriss fell short of expectations.

PayPal said Chief Financial Officer Jamie Miller will serve as interim CEO until Lores takes over on March 1. The abrupt leadership change came alongside a forecast that adjusted profit next year could range from a slight decline to modest growth, well below Wall Street expectations. Analysts said the combination of a sudden CEO exit and a muted outlook suggests deeper challenges in reviving growth.

The company continues to face pressure from slowing retail spending and intensifying competition from Big Tech and newer fintech rivals. PayPal also reported quarterly revenue and profit below estimates, while growth in its higher-margin branded checkout business slowed sharply, adding to concerns about its core payments franchise.

India’s top court questions WhatsApp data sharing with Meta

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India’s Supreme Court has warned it could reinstate restrictions on WhatsApp sharing user data with other Meta entities, raising fresh concerns over privacy and consent. During a hearing on Tuesday, the chief justice said WhatsApp’s privacy policy appeared to be designed in a way that could mislead users, particularly those with limited digital literacy.

The case stems from a 2024 ruling by India’s antitrust authority, which fined WhatsApp $25.4 million and barred data sharing for advertising purposes for five years. An appeals court later lifted the data-sharing ban while keeping the fine, prompting both sides to approach the Supreme Court.

India is Meta’s largest market by users, and WhatsApp has argued that restrictions could force it to roll back features. The Supreme Court did not issue a final decision and is expected to continue hearings next week.