Space Stocks Are Skyrocketing: Here’s Why
The space industry has rocketed to the forefront of investors’ minds, driven by technological breakthroughs and growing government and commercial interest, with these five space stocks leading the charge.
Space stocks are soaring, capturing investor attention with unprecedented growth driven by stellar earnings, new government contracts, and a renewed political climate favorable to the sector. Key players like Rocket Lab (NASDAQ: RKLB), AST SpaceMobile (NASDAQ: ASTS), Intuitive Machines (NASDAQ: LUNR), Planet Labs (NYSE: PL), and Spire Global (NYSE: SPIR) are reshaping this burgeoning sector, which is expected to become a trillion-dollar industry by 2040.
Rocket Lab (RKLB) Pioneers New Launches
Rocket Lab (NASDAQ: RKLB), a leader in satellite launches and systems, released its Q3 earnings on Tuesday. The company reported revenue for the quarter of $105 million, up 55% over the $67.7 million reported in last year’s Q3 and beating Wall Street’s estimate of $102.7 million. Rocket Labs posted a loss of $0.10 per share, beating analysts’ projection of a $0.11 loss.
This record growth is attributed to heightened demand for its Electron rockets and promising contracts for its upcoming Neutron rocket.
Citing new contracts worth $55 million for the Electron alone in Q3, and with additional launches slated through the end of the year, Rocket Lab CEO Peter Beck stated:
“In the third quarter 2024, we once again executed against our end-to-end space strategy with successes and key achievements reached across small and medium launch, as well as space systems. Revenue grew 55% year-on-year to $105 million and we continue to see strong demand growth with our backlog at $1.05 billion.”
The company’s Neutron rocket, anticipated for its first launch in 2025, has already secured multi-launch agreements with a “confidential commercial satellite constellation operator,” boosting investor confidence. Neutron is designed for heavier payloads, positioning Rocket Lab to compete with SpaceX in high-demand commercial and government contracts, a niche analysts see as essential for the next wave of space innovation.
Shares of Rocket Lab (NASDAQ: RKLB) stock closed Wednesday’s trading session at $18.83, up 28.44% on the day.
YTD, RKLB stock is up 254.61%.
View Rocket Lab Interactive Stock Chart on Barchart
AST SpaceMobile (ASTS) Makes Historic Connectivity Breakthrough
AST SpaceMobile (NASDAQ: ASTS) recently stunned the market with its breakthrough in satellite-to-phone connectivity, marking the first-ever 4G call directly from space to an unmodified smartphone. This achievement propelled AST’s stock upward as investors recognized the revolutionary potential of global broadband access through space, bypassing traditional cellular infrastructure.
The company’s BlueWalker 3 satellite, responsible for this achievement, aims to connect underserved and remote regions by offering seamless mobile coverage without the need for ground-based towers. AST SpaceMobile’s historic call saw engineers from Vodafone (NASDAQ: VOD) and AT&T (NYSE: T) take part in preparing and testing the BlueWalker 3 satellite.
“Achieving what many once considered impossible, we have reached the most significant milestone to date in our quest to deliver global cellular broadband from space. While we take a moment to celebrate this tremendous accomplishment, we remain focused on the path ahead and pivotal next steps that get us closer to our goal of transforming the way the world connects, said AST SpaceMobile CEO Abel Avellan.
With plans to launch a larger satellite constellation by 2025, AST is positioning itself to disrupt the telecom industry and deliver transformative access worldwide.
AST SpaceMobile will report its Q3 earnings after the closing bell on Thursday. Analysts expect the company to report revenues of around $2 million and a loss of $0.18 per share, compared to a loss of $0.23 in last year’s Q3.
Shares of AST SpaceMobile (NASDAQ: ASTS) stock closed Wednesday up 14.96% at $27.89 per share.
YTD, ASTS stock is up 475.05%.
View AST SpaceMobile Interactive Stock Chart on Barchart
Intuitive Machines (NASDAQ: LUNR) Expands Lunar Ambitions
Intuitive Machines (NASDAQ: LUNR) has set its sights on the Moon, a strategy distinguishing it from other satellite-focused space companies. With its NOVA-C lunar lander scheduled for launch in early 2025, the company aims to deliver critical scientific payloads to the Moon’s surface as part of NASA’s Artemis program. This ambitious mission aligns with a broader push for lunar exploration, as both the US government and private entities renew their focus on lunar missions for science, exploration, and future economic potential.
In a recent earnings report, Intuitive Machines reported significant growth in government contracts, bolstered by NASA’s $77 million award for the company’s upcoming mission. Analysts see Intuitive Machines as a strategic investment, especially as lunar exploration becomes a focal point of international competition and scientific discovery. The company’s involvement in NASA’s Artemis missions could provide a stable revenue stream and long-term growth opportunities, helping it stand out in the increasingly competitive space market.
Intuitive Machines is set to report its Q3 earnings before the opening bell on Thursday. Analysts expect the company to report revenue of $52.4 million, up substantially from the $12.7 million reported in the same quarter last year. Analysts are also projecting a Q3 loss of $0.13, compared to a loss of $0.22 in last year’s third quarter.
Shares of Intuitive Machines (NASDAQ: LUNR) stock closed the day at $11.76, up 13.08%.
YTD, LUNR stock is up 398.31%.
View Intuitive Machines Interactive Stock Chart on Barchart
Planet Labs (NYSE: PL) Strengthens Earth Observation
Planet Labs (NYSE: PL), a leading provider of satellite imagery, focuses on Earth observation and data analytics for industries ranging from agriculture to climate monitoring. The company operates one of the world’s largest constellations of imaging satellites, providing daily high-resolution snapshots of Earth to aid in environmental monitoring and disaster response.
Planet Labs recently announced a new data-sharing partnership with major agricultural firms to provide real-time insights into crop health, soil conditions, and weather impacts. CEO Will Marshall emphasized the company’s mission to offer a “living digital record of the Earth,” as it enables better decision-making for both government agencies and private sector clients. Planet Labs also recently secured a contract with NASA to expand climate monitoring services, further demonstrating the growing demand for real-time environmental intelligence.
Planet Labs will report earnings for the third quarter on December 10, 2024, with analysts projecting a loss of $0.05 per share. In the last year’s Q3, the company also reported a loss of $0.05.
Shares of Planet Labs (NYSE: PL) stock finished the day up 14.07% at $3 per share.
YTD, PL stock is up 26.05%.
View Planet Labs Interactive Stock Chart on Barchart
Spire Global (SPIR) Refocuses on Core Markets
Spire Global (NYSE: SPIR) saw its shares rise significantly after selling its maritime ship-tracking business to Kpler for $241 million. This divestiture allows Spire to refocus on its core markets of aviation, weather, and space services, all while clearing its debt. CEO Peter Platzer explained that the sale positions Spire to deepen its capabilities in critical data sectors, especially in areas such as weather forecasting and aviation monitoring.
The capital from this deal allows Spire to invest in its technology and services, particularly those targeted toward government and commercial clients. Recent collaborations, such as Spire’s partnership with NOAA, underscore the company’s focus on providing advanced environmental data and analytics. Analysts believe this strategic shift will allow Spire to capture greater market share in sectors with high growth potential, especially as climate change intensifies demand for precise weather data.
Spire Global has delayed the filing of its Q3 financials while the company finishes conducting an accounting review related to its revenue recognition practices for space services and research and development contracts.
Spire Global recently released an update on the revenue recognition review, which included several financial milestones achieved during the third quarter. Spire Global reported that it brought in $40 million of new contracts in Q3, the largest amount for a single quarter in the company’s history. The company also announced that it reduced its debt by $10 million in Q3 and ended the quarter with $36.6 million in cash.
In a November 4, 2024, press release, Spire Global wrote:
“The Company has been making progress in its review of its accounting practices and procedures, which has focused on: revenue recognition related to certain Space Services contracts, the possible existence of embedded leases within certain Space Services contracts, and revenue recognition for certain research and development contracts. The Company expects to file restated prior period financial statements, its second quarter Form 10-Q, and its third quarter Form 10-Q within the previously disclosed six-month cure period provided by the New York Stock Exchange, which will end on February 19, 2025.”
Shares of Spire Global (NYSE: SPIR) stock finished the day up 14.08% at $13.45 per share.
YTD, SPIR stock is up 73.77%.
View Spire Global Interactive Stock Chart on Barchart
A Thriving Space Sector with High Potential and Risks
The broader market for space stocks is seeing unprecedented investment flows, with both public and private capital pushing the industry forward. Morgan Stanley predicts that the global space economy could reach $1 trillion by 2040, with growth fueled by advancements in satellite technology, lunar exploration, and space tourism. Companies like Rocket Lab, AST SpaceMobile, Intuitive Machines, Planet Labs, and Spire Global are all well-positioned to benefit from this growth.
However, the space industry also carries considerable risk. High capital requirements, technical challenges, and intense competition—particularly from dominant players like SpaceX—mean that achieving profitability can be a daunting task. Regulatory shifts and political changes could further influence the industry, with outcomes that may impact access to government contracts and launch permissions.
Despite these uncertainties, the space sector’s promise remains undeniable. For investors prepared to navigate its risks, space stocks offer compelling opportunities as they continue to shape the future of connectivity, exploration, and data-driven insights. As Rocket Lab, AST SpaceMobile, Intuitive Machines, Planet Labs, and Spire Global drive innovation in space, they are collectively launching the industry into an era of new possibilities.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
