Two Space Stocks that Offer the Best Growth Potential in 2025

Rocket technology is slowly but surely moving away from monumental government-centric projects. Even Intuitive Machines (NASDAQ: LUNR), having previously received a $4.8 billion NASA contract after revisiting the Moon, was outclassed by privately held Firefly Aerospace in early March.

With wider access to space flight technology, more companies are able to claim space stock status. And with China’s Qianfan (Spacesail Constellation) to rival SpaceX’s Starlink coverage, governments are further incentivized to ease regulatory restrictions and boost funding.

But which companies are paving the road for a sustainable business model over the long run?

AST SpaceMobile (NASDAQ: ASTS)

It is well known that telecom companies like Verizon (NYSE: VZ) are able to pay generous dividends because of their predictable cash flows for essential services. Based in Texas, AST SpaceMobile is making the right moves to have that strong financial position. Namely, the company contracts rocket companies to deploy 4G and 5G services in low Earth orbit (LEO).

This broadband space infrastructure builds up a subscription base in areas that have no coverage or where such coverage is difficult to achieve. So much so that AST partnered with major mobile network operators (MNOs), from AT&T and Vodafone to Verizon, to offer AST’s satellite coverage as supplemental.

In turn, AST receives revenue not only from monthly subscribers but also from international roaming and data transmission fees. In September 2024, the company launched its first five commercial BlueBird satellites via SpaceX’s Falcon 9 rockets.

In January 2025, AST crossed the milestone with the first-ever video call using this space infrastructure, having already crossed 4G/5G voice call milestones in 2023. Of course, as AST’s ambitious plans move forward, capital expenditures (capex) also go up with little movement in cash reserves.

As of early March 2025 for Q4 2024 earnings, AST beat the Zacks Consensus earnings per share (EPS) by 2 cents, at negative 18 cents and quarterly net loss of $35.9 million, which is up from the net loss of $31.9 million in the year-ago quarter.

In other words, ASTS shareholders are paying for the company to yet reach profitability. And that bet is based on AST’s space service getting embedded in regular broadband packages. The underlying thesis is that people will demand a peace of mind outside cell towers, especially after the historic power blackouts in Spain, Portugal and parts of France.

Based on that premise, ASTS stock performed well, up nearly 18% year-to-date. Although there have been several steep declines, ASTS shares tend to recover quickly. Against the current ASTS price of $25.59, WSJ’s forecasting data shows an average price target of $42.27 per share.

In addition to that significant upside potential, the bottom target of $30 is above the current price level, suggesting an optimal exposure entry after the tariffs-induced market turmoil.

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RocketLab USA (NASDAQ: RKLB)

One of the more consistent themes in our stock coverage is that RKLB shares should be considered at every dip opportunity. Instead of SpaceX being publicly traded, RocketLab is the first alternative for cost-effective LEO payload deployments.

To get to that status, RocketLab relied on smaller Electron rockets with up to 300kg payload capacity. Although this makes it less competitive against SpaceX’s medium-sized rockets at 22,800kg, the company offset this with two key approaches:

• Leveraging the small satellite market, typically in deploying satellite constellations. Not only does their quantity supply sufficient demand, but RocketLab developed a new type of satellite, dubbed Flatellite, specifically to scale up manufacturing for large constellation deployments.
• Vertical integration – to get businesses to pick RocketLab for delivery, the company made it easier by integrating design, manufacturing, and mission management. For this reason, RocketLab divided its revenue into Launch Services and Space Systems, with the latter providing recurring revenue and higher margins.

Employing these two approaches, RocketLab demonstrated consistent competence, having conducted 63 Electron launches with only 4 failures. On May 17th, Electron is set for its 64th mission, delivering an imaging satellite for the iQPS constellation.

Yet, this is just the first stage of the company’s development. To join the medium-sized rocket arena, RocketLab has been developing a partially reusable Neutron rocket, set for launch in H2 2025.

“We’re working hard to bring Neutron online with one of the fastest development schedules in history for a new rocket, because we know medium-lift launch opportunities are limited and space access is being stifled”

RocketLab CEO Sir Peter Beck in February

Given the company’s track record, if Neutron milestone launch fails, investors should view it as a double-down on the dip opportunity. Similar to AST SpaceMobile, RocketLab is yet to enter profitability, having delivered $190 million net loss for FY2024 against $182.5 million net loss for FY2023.

However, the demand for RocketLab’s services are strong, evidenced by an 85% revenue increase from 2023 to 2024, at $289.85 million for the full year. At the end of 2024, the company reported $271 million in cash reserves.

With the deployment of Neutron rockets, the company is likely to secure future NASA contracts. In January, such inclusion was already added for RocketLab’s existing VADR contract from 2022. Moreover, the company is firmly embedding itself into the aerospace industrial complex, following the $5.6 billion contract for Space Force.

Year-to-date, RKLB stock is down 11%. Against the present price of $22.37, WSJ’s forecasting data points to an average RKLB price target of $25.03. However, the bottom estimate is significantly lower, at $14.35, mirroring Neutron concerns. The top RKLB price target is $33, while analysts overwhelmingly suggest buying, at 10, vs only 5 analysts who recommend holding.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.