SpaceX IPO Approaches, Space Stocks Gain Attention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- AST SpaceMobile Growth Potential: AST SpaceMobile aims for $150 million to $200 million in revenue for 2026, a significant increase from $70.9 million in 2025, indicating strong demand and potential profitability in the global telecom market.
- Intuitive Machines' Contract Advantage: Intuitive Machines secured lunar reconnaissance contracts with NASA, projecting 2026 revenues of $900 million to $1 billion, highlighting its critical role in space infrastructure and future growth potential.
- Rocket Lab's Performance Breakthrough: Rocket Lab achieved $200 million in revenue in Q1 2026, a 63.5% year-over-year increase, with a $2.2 billion backlog, demonstrating strong demand and sustained growth in the space launch market.
- Overall Industry Optimism: As the SpaceX IPO approaches, overall investment enthusiasm in the space sector is rising, expected to attract more capital inflow, boosting stock prices of related companies and accelerating industry development.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 118.170
Low
43.00
Averages
91.68
High
137.00
Current: 118.170
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned a space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AST SpaceMobile Shares Surge 53.5% Amid Market Speculation
- Stock Surge: AST SpaceMobile's shares jumped 53.5% last month, reflecting optimistic market sentiment about its future potential, especially ahead of the upcoming SpaceX IPO, with a staggering 389% increase over the past year.
- Market Positioning: Competing directly with Starlink in satellite internet, AST SpaceMobile aims to deliver high-speed internet directly to mobile devices through ultra-large array technology, eliminating the need for terminal devices, although it is still in the satellite deployment phase with minimal revenue.
- Financial Strength: With a cash balance of $3 billion at the end of the last quarter, AST SpaceMobile is well-positioned to continue advancing satellite construction and launch contracts, with projected revenues of $150 million to $200 million by 2026, primarily driven by U.S. government contracts and partnerships with global mobile carriers.
- Market Risks: Despite AST SpaceMobile's vast potential, its stock price already reflects expectations of success, with a current market cap of $46 billion, prompting caution among investors due to the uncertainties involved in building a satellite internet service, which could lead to disappointment in the coming years.
See More
SpaceX IPO Approaches, Space Stocks Gain Attention
- AST SpaceMobile Growth Potential: AST SpaceMobile aims for $150 million to $200 million in revenue for 2026, a significant increase from $70.9 million in 2025, indicating strong demand and potential profitability in the global telecom market.
- Intuitive Machines' Contract Advantage: Intuitive Machines secured lunar reconnaissance contracts with NASA, projecting 2026 revenues of $900 million to $1 billion, highlighting its critical role in space infrastructure and future growth potential.
- Rocket Lab's Performance Breakthrough: Rocket Lab achieved $200 million in revenue in Q1 2026, a 63.5% year-over-year increase, with a $2.2 billion backlog, demonstrating strong demand and sustained growth in the space launch market.
- Overall Industry Optimism: As the SpaceX IPO approaches, overall investment enthusiasm in the space sector is rising, expected to attract more capital inflow, boosting stock prices of related companies and accelerating industry development.
See More
AST SpaceMobile Executives Retain Shares, Boosting Market Confidence
- Insider Confidence Signal: AST SpaceMobile executives opted to retain shares following the vesting of restricted stock units (RSUs) on May 30, with CEO Abel Avellan holding onto 78.5 million Class A shares, signaling strong confidence in the company's future and boosting investor sentiment towards ASTS.
- Blue Origin Recovery Progress: Following the New Glenn launchpad explosion, Blue Origin's CEO reported that several critical infrastructures survived, including the propellant farm and liquid storage systems, with a return to flight expected by year-end, which is crucial for ASTS's future launch plans.
- Robust Launch Plans: AST SpaceMobile confirmed that BlueBird satellites 8, 9, and 10 have arrived at Cape Canaveral and entered final processing, with a Falcon 9 launch expected in mid-June, and the CEO stated the company remains on track to deploy 45 satellites this year, ensuring the execution of its multi-launch agreements.
- Impact of SpaceX IPO: Investors are closely watching SpaceX's anticipated IPO, which could value the company between $1.75 trillion and $1.8 trillion; despite some cooling market sentiment, the potential $28.5 trillion total addressable market for SpaceX still positively influences the broader space sector.
See More
SpaceX IPO Details Expected Soon, Valuation Up to $1.8 Trillion
- IPO Fundraising Target: SpaceX aims to raise $75 billion by selling 555.6 million shares at $135 each, implying a valuation between $1.75 trillion and $1.8 trillion, surpassing Saudi Aramco's $29.4 billion IPO in 2019, highlighting its immense potential in the space market.
- All-Primary Offering Structure: The IPO will be structured as an all-primary offering, ensuring all proceeds flow directly to SpaceX while existing shareholders are barred from selling shares during the IPO, which preserves the company's control and may facilitate rapid inclusion in the Nasdaq 100.
- Underwriting Fee Negotiations: SpaceX is negotiating underwriting fees below 0.75%, which, while lower than traditional levels, could still generate $500 million in fees for participating banks due to the massive size of the deal, showcasing its strong fundraising capability.
- Market Sentiment Volatility: Despite attracting investor interest, there are concerns about SpaceX's proposed valuation of $1.75 trillion to $1.8 trillion, with Morningstar suggesting it may be overvalued, indicating potential stock price pressure in the months following the IPO, prompting investors to carefully assess risks.
See More
AST SpaceMobile Poised to Disrupt Satellite Internet Market
- Significant Market Potential: AST SpaceMobile aims to deploy its satellite constellation by the end of 2026, projecting revenues of $150 million to $200 million primarily from U.S. government contracts and partnerships with global mobile carriers, highlighting its vast potential in the satellite internet market.
- Strong Capital Position: As of the end of the last quarter, AST SpaceMobile reported $3 billion in cash, raised through multiple stock offerings, providing ample funding for satellite construction and launch, ensuring operational capability for future growth.
- Competitive Advantage: AST SpaceMobile is poised to be the first satellite constellation capable of delivering high-speed internet directly to mobile devices without antennas, leveraging ultra-large arrays and other satellite technology innovations, potentially filling gaps in the existing land-based cell tower network and attracting a large user base.
- High Stock Price Risk: Despite a staggering 389% increase in stock price over the past year, AST SpaceMobile's market capitalization has reached $46 billion, indicating that expectations for its future success are already priced in, prompting investors to exercise caution and avoid buying at elevated price levels.
See More
Space Sector Pullback as Investors Reassess Risks
- ETF Decline: The Procure Space ETF (NASDAQ:UFO) has dropped nearly 10% in just two sessions, indicating that investors are reassessing the execution risks associated with the space sector, which may impact future investment strategies.
- Stock Performance: Intuitive Machines (NASDAQ:LUNR) and Rocket Lab (NASDAQ:RKLB) have fallen approximately 16% and 17%, respectively, while retail favorite AST SpaceMobile (NASDAQ:ASTS) has plummeted nearly 21%, reflecting a significant loss of confidence in space stocks.
- IPO Valuation Adjustment: SpaceX has cut its IPO valuation target from at least $2 trillion to $1.8 trillion, with Bloomberg Intelligence analysts suggesting this could imply that industry valuations are stretched, while also highlighting ongoing operational challenges in the space sector.
- Shift in Market Sentiment: Although the Procure Space ETF is still up nearly 60% year-to-date, investor sentiment has shifted due to incidents like the Blue Origin rocket test failure, potentially leading to a rotation of funds towards emerging companies like SpaceX as its debut approaches.
See More
AST SpaceMobile Shares Surge 53.5% Amid Market Speculation
- Stock Surge: AST SpaceMobile's shares jumped 53.5% last month, reflecting optimistic market sentiment about its future potential, especially ahead of the upcoming SpaceX IPO, with a staggering 389% increase over the past year.
- Market Positioning: Competing directly with Starlink in satellite internet, AST SpaceMobile aims to deliver high-speed internet directly to mobile devices through ultra-large array technology, eliminating the need for terminal devices, although it is still in the satellite deployment phase with minimal revenue.
- Financial Strength: With a cash balance of $3 billion at the end of the last quarter, AST SpaceMobile is well-positioned to continue advancing satellite construction and launch contracts, with projected revenues of $150 million to $200 million by 2026, primarily driven by U.S. government contracts and partnerships with global mobile carriers.
- Market Risks: Despite AST SpaceMobile's vast potential, its stock price already reflects expectations of success, with a current market cap of $46 billion, prompting caution among investors due to the uncertainties involved in building a satellite internet service, which could lead to disappointment in the coming years.
See More
SpaceX IPO Approaches, Space Stocks Gain Attention
- AST SpaceMobile Growth Potential: AST SpaceMobile aims for $150 million to $200 million in revenue for 2026, a significant increase from $70.9 million in 2025, indicating strong demand and potential profitability in the global telecom market.
- Intuitive Machines' Contract Advantage: Intuitive Machines secured lunar reconnaissance contracts with NASA, projecting 2026 revenues of $900 million to $1 billion, highlighting its critical role in space infrastructure and future growth potential.
- Rocket Lab's Performance Breakthrough: Rocket Lab achieved $200 million in revenue in Q1 2026, a 63.5% year-over-year increase, with a $2.2 billion backlog, demonstrating strong demand and sustained growth in the space launch market.
- Overall Industry Optimism: As the SpaceX IPO approaches, overall investment enthusiasm in the space sector is rising, expected to attract more capital inflow, boosting stock prices of related companies and accelerating industry development.
See More
AST SpaceMobile Executives Retain Shares, Boosting Market Confidence
- Insider Confidence Signal: AST SpaceMobile executives opted to retain shares following the vesting of restricted stock units (RSUs) on May 30, with CEO Abel Avellan holding onto 78.5 million Class A shares, signaling strong confidence in the company's future and boosting investor sentiment towards ASTS.
- Blue Origin Recovery Progress: Following the New Glenn launchpad explosion, Blue Origin's CEO reported that several critical infrastructures survived, including the propellant farm and liquid storage systems, with a return to flight expected by year-end, which is crucial for ASTS's future launch plans.
- Robust Launch Plans: AST SpaceMobile confirmed that BlueBird satellites 8, 9, and 10 have arrived at Cape Canaveral and entered final processing, with a Falcon 9 launch expected in mid-June, and the CEO stated the company remains on track to deploy 45 satellites this year, ensuring the execution of its multi-launch agreements.
- Impact of SpaceX IPO: Investors are closely watching SpaceX's anticipated IPO, which could value the company between $1.75 trillion and $1.8 trillion; despite some cooling market sentiment, the potential $28.5 trillion total addressable market for SpaceX still positively influences the broader space sector.
See More
SpaceX IPO Details Expected Soon, Valuation Up to $1.8 Trillion
- IPO Fundraising Target: SpaceX aims to raise $75 billion by selling 555.6 million shares at $135 each, implying a valuation between $1.75 trillion and $1.8 trillion, surpassing Saudi Aramco's $29.4 billion IPO in 2019, highlighting its immense potential in the space market.
- All-Primary Offering Structure: The IPO will be structured as an all-primary offering, ensuring all proceeds flow directly to SpaceX while existing shareholders are barred from selling shares during the IPO, which preserves the company's control and may facilitate rapid inclusion in the Nasdaq 100.
- Underwriting Fee Negotiations: SpaceX is negotiating underwriting fees below 0.75%, which, while lower than traditional levels, could still generate $500 million in fees for participating banks due to the massive size of the deal, showcasing its strong fundraising capability.
- Market Sentiment Volatility: Despite attracting investor interest, there are concerns about SpaceX's proposed valuation of $1.75 trillion to $1.8 trillion, with Morningstar suggesting it may be overvalued, indicating potential stock price pressure in the months following the IPO, prompting investors to carefully assess risks.
See More
AST SpaceMobile Poised to Disrupt Satellite Internet Market
- Significant Market Potential: AST SpaceMobile aims to deploy its satellite constellation by the end of 2026, projecting revenues of $150 million to $200 million primarily from U.S. government contracts and partnerships with global mobile carriers, highlighting its vast potential in the satellite internet market.
- Strong Capital Position: As of the end of the last quarter, AST SpaceMobile reported $3 billion in cash, raised through multiple stock offerings, providing ample funding for satellite construction and launch, ensuring operational capability for future growth.
- Competitive Advantage: AST SpaceMobile is poised to be the first satellite constellation capable of delivering high-speed internet directly to mobile devices without antennas, leveraging ultra-large arrays and other satellite technology innovations, potentially filling gaps in the existing land-based cell tower network and attracting a large user base.
- High Stock Price Risk: Despite a staggering 389% increase in stock price over the past year, AST SpaceMobile's market capitalization has reached $46 billion, indicating that expectations for its future success are already priced in, prompting investors to exercise caution and avoid buying at elevated price levels.
See More
Space Sector Pullback as Investors Reassess Risks
- ETF Decline: The Procure Space ETF (NASDAQ:UFO) has dropped nearly 10% in just two sessions, indicating that investors are reassessing the execution risks associated with the space sector, which may impact future investment strategies.
- Stock Performance: Intuitive Machines (NASDAQ:LUNR) and Rocket Lab (NASDAQ:RKLB) have fallen approximately 16% and 17%, respectively, while retail favorite AST SpaceMobile (NASDAQ:ASTS) has plummeted nearly 21%, reflecting a significant loss of confidence in space stocks.
- IPO Valuation Adjustment: SpaceX has cut its IPO valuation target from at least $2 trillion to $1.8 trillion, with Bloomberg Intelligence analysts suggesting this could imply that industry valuations are stretched, while also highlighting ongoing operational challenges in the space sector.
- Shift in Market Sentiment: Although the Procure Space ETF is still up nearly 60% year-to-date, investor sentiment has shifted due to incidents like the Blue Origin rocket test failure, potentially leading to a rotation of funds towards emerging companies like SpaceX as its debut approaches.
See More
