Space Industry Stocks Soar: Legacy and Startups Alike Reach for the Stars

Two satellite companies have experienced remarkable stock market action recently. AST SpaceMobile and Viasat, each carving out unique niches, have attracted investors looking to gain exposure to the space economy.

AST SpaceMobile

AST SpaceMobile is building a global constellation of satellites that will offer satellite-to-smartphone service. The company is shipping five "Bluebird" Low-Earth Orbit (LEO) satellites to Cape Canaveral, Florida, for an initial commercial launch on SpaceX's Falcon 9 in September. AT&T and Verizon are partnering with AST SpaceMobile to provide their customers service in areas where cell coverage is insufficient.

Year-to-date, AST SpaceMobile stock is up 212.94% compared to the ARK Space Exploration ETF (ARKX) performance of -0.84%.

Key Statistics:

Cash as of Q1 2024: $212.4 million

Debt: $166.6 million

Credit facility: $51.5 million available

Recent management comments:

"Developing ASIC chip to increase satellite processing capacity by 10x compared to Block 1 satellites."

"Focus on scaling the system beyond the initial five satellites for mass-market consumer solutions."

"Executed first definitive commercial agreement with AT&T through 2030 for space-based cellular broadband services."

Viasat

Viasat is an established provider of satellite broadband services and advanced defense technology capabilities to commercial and government customers. Founded in 1986, ViaSat also provides WI-Fi for over 3,720 commercial aircraft. The company faced a setback in 2023 when an antenna deployment failed on their ViaSat-3 F1 satellite, causing a more than 90% loss of its one terabit per second capacity. The company still plans to launch its VisSat-3 F3 in late 2024.

While Viasat year-to-date is down -30.13%, the stock is up 51.28% in July.

Key Statistics:

Q4 FY2024 revenue: $1.2 billion

Cash: $3 billion in liquidity, including $1.9 billion in cash and cash equivalents

Debt: $7.5 billion

Recent management comments:

"The first claim submitted was for the I-6 F2 satellite and we have received 100% of the insurance proceeds or $348 million. We are in the process of collecting ViaSat-3 F1 insurance proceeds, and to-date, we have collected about 55% of $421 million expected."

"Net loss from continuing operations was $85 million for Q4, up from $23 million net loss in the year-ago period primarily due to increased interest expense associated with the Inmarsat acquisition."

Big Picture

The global satellite communication market was valued at USD 85.66 billion in 2023 and is projected to reach $195.27 billion by 2032, growing at a 9.4% CAGR. As AST SpaceMobile and Viasat demonstrate, both newcomers and veterans are positioning themselves to capitalize on this opportunity.