Private Space Stocks: Rising Interest Amid High Risk

A recent report highlights the potential of several space-related stocks, particularly Intuitive Machines and Rocket Lab, following significant contracts and revenue growth. However, the high-risk nature of the industry warrants careful investor consideration.

Date: 11-09-2024

AI Rating: 6

The report provides insight into several key space stocks, emphasizing their growth and the inherent risks of the sector. Key details include:

Intuitive Machines (LUNR) has gained momentum following a significant contract from NASA worth over $100 million, resulting in a share price increase of 33%. While the company is expected to be unprofitable in 2024, it managed to turn a profit in 2023, attracting bullish analyst attention.
Rocket Lab (RKLB) reported record revenue of $106 million, marking a 71% year-over-year increase. Despite not being profitable since going public, its revenue trajectory indicates strong growth, aided by a backlog exceeding $1 billion.
AST SpaceMobile (ASTS) is gearing up for the launch of its commercial satellites, which could allow it to connect a significant portion of U.S. mobile users through partnerships with major telecom players. The company has a solid cash position of approximately $300 million, enhancing its stability.

None of the mentioned companies have specific metrics related to EPS, Profit Margins, Free Cash Flow, or Return on Equity provided in the report, but the updates on revenue and contracts signal potential influences on stock prices due to market confidence. The report suggests a cautiously optimistic view toward public space stocks, particularly for companies overcoming operational challenges and solidifying their business models.

Stocks: BA TSLA LUNR ASTS RKLB