Viasat Soars 29% as NASA Awards New Contract

Viasat shares surged by 29% this week after the company won a NASA contract. Investors should proceed with caution, as the long-term viability of Viasat remains uncertain given its recent performance.

Date: 25-01-2025

AI Rating: 6

Stock Performance and Contract Win
Viasat's stock has seen a significant increase of 29% over the past week, driven largely by the announcement of a contract with NASA valued at $4.8 billion related to the Near Space Network initiative. This new project positions Viasat among four contractors to provide satellite communication services for NASA's current and future missions, suggesting a potential for increased revenue opportunities in the near future.

C-suite Changes and Concerns
In addition to the NASA contract, Viasat is undergoing a significant restructuring in its executive team to support its growth strategy. This kind of management change can often be seen as a double-edged sword; while it might align the company more closely with its long-term objectives, it also raises questions about stability and leadership vision.

Despite these positive developments, there remains skepticism around Viasat's long term profitability. The report notes that the company has consistently reported bottom-line losses, raising concerns about its financial health and capacity for sustainable growth. Investors need to be cautious as the company still has to demonstrate that it can convert these contracts and initiatives into profitability.

Conclusion
It is a promising time for Viasat with a notable increase in stock price and a significant new contract. However, the uncertainty around consistent losses and management changes should be weighed carefully before making investment decisions.

Stocks: VSAT