Forget SpaceX: RKLB & ASTS Are the Space Stocks to Watch Now
💡 Key Takeaway
The upcoming SpaceX IPO is driving investor interest and higher valuations for public space stocks like Rocket Lab and AST SpaceMobile, but both carry significant execution risk.
The SpaceX IPO Frenzy Ignites Public Space Stocks
SpaceX is reportedly targeting a record-breaking IPO in mid-June, aiming for a valuation near $1.75 trillion. This monumental event is shining a massive spotlight on the entire space sector.
The anticipation has already caused a rerating of smaller, publicly traded space companies. Stocks in the category have been extending gains over the past two months as investors seek exposure to the space economy without waiting for SpaceX's debut.
Two names have emerged as direct beneficiaries of this hype: Rocket Lab (RKLB) and AST SpaceMobile (ASTS). Both have seen their stock prices surge, with RKLB up roughly 57% since late March when IPO speculation intensified.
The article highlights these two as having the underlying business momentum to potentially ride the wave of increased attention from the SpaceX listing, making them alternatives for investors eager to get in on the space theme.
Why This Sector-Wide Momentum Is a Double-Edged Sword
For stock prices, this pre-IPO momentum matters because it can create a sustained tailwind. As more capital and media attention flow into the sector, all boats can rise, potentially justifying higher valuations for companies demonstrating real growth.
Rocket Lab's story is about surging demand. Its Q1 revenue jumped 63.5% year-over-year, and its backlog more than doubled to $2.2 billion, including a major $190 million U.S. Department of War contract. This shows tangible commercial and government traction beyond hype.
AST SpaceMobile's case hinges on a pivotal regulatory and technological breakthrough. Receiving FCC authorization for commercial service in the U.S. removes a major barrier, while its demonstrated high-speed data connection from orbit proves the core technology works.
However, the soaring valuations introduce major risk. RKLB trades at a price-to-sales ratio well over 100, and ASTS's market cap is over $30 billion despite minimal current revenue. These prices bake in perfect future execution, leaving little room for error or delays in key projects like RKLB's Neutron rocket or ASTS's satellite deployment.
Source: The Motley Fool
Analysis generated by Bobby AI quantitative model, reviewed and edited by our research team. This is not financial advice. Always do your own research before making investment decisions.
Bobby Insight
Consider very small, speculative positions only if you have a high risk tolerance and a long time horizon.
The SpaceX IPO is a legitimate catalyst bringing mainstream capital to a niche sector, and both RKLB and ASTS have compelling narratives with real contracts and regulatory wins. However, extreme valuations and unproven key technologies mean the risk of a sharp pullback is very high if execution stumbles.
What This Means for Me
