The space sector soared in 2024, with stocks like AST SpaceMobile, Rocket Lab, Intuitive Machines, and Redwire posting eye-popping gains—some climbing over 400% by year’s end.
One major catalyst was the rising demand among telecom providers to expand mobile coverage, particularly to rural and remote areas. This surge in connectivity contracts helped companies like AST SpaceMobile secure new deals for satellite deployment and management. Rocket Lab also benefited, winning fresh contracts and executing successful missions—including key launches for NASA.
Looking ahead to 2025, the market is buzzing with anticipation over the Trump-Musk relationship, which may spotlight space as both a frontier for exploration and a pillar of national defense. The appointment of Jared Isaacman—a private astronaut and entrepreneur—as the new NASA head has further fueled investor optimism that U.S. space initiatives could accelerate under a more dynamic and goal-driven approach. Additionally, rising international competition in space is expected to drive more U.S. investment in the sector.
Other tailwinds for the industry include:
- Falling launch costs, making access to orbit more affordable.
- A broader mix of investors, from VCs and private equity firms to sovereign governments and billionaires.
- A wave of commercial innovation in satellite tech and infrastructure.
- Heightened global awareness of space’s role in cybersecurity, communications, and national autonomy.
Still, despite a promising outlook, investors face uncertainty when it comes to timing. Many space companies rely heavily on government contracts, which can be delayed by budget cycles, political decisions, or operational dependencies. Payments are often tied to performance milestones or partner progress, adding to unpredictability.
AST SpaceMobile (NASDAQ: ASTS)
AST SpaceMobile is building the first space-based cellular broadband network designed to connect directly with regular smartphones. The stock has gained around 54.3% year-to-date, driven by advancements in technology and new commercial agreements. The company has inked strategic deals with telecom giants like AT&T, Vodafone, and Verizon, and is continuing to grow its footprint with the U.S. government.
Analysts remain bullish. UBS’s Christopher Schoell raised his price target to $38 (from $31) and maintained a “Buy” rating, citing continued momentum from carrier deals and funding milestones. ASTS’s $43 million contract through the U.S. Space Development Agency is a major validation of its capabilities, and its partnerships now include roughly 50 mobile network operators covering 3 billion subscribers. The company is focused on scaling in 2025 and aims to do so through non-dilutive funding strategies like prepayments and commercial partnerships.
Rocket Lab (NASDAQ: RKLB)
Rocket Lab is gearing up for the debut flight of its larger Neutron rocket later this year—a key moment in its bid to win long-term launch contracts from the U.S. Space Force, potentially worth up to $5.6 billion through 2029. The company closed out 2024 with a $1.07 billion backlog, evenly split between commercial and government clients.
Its success will depend heavily on launch execution and innovation. Rocket Lab is still early in its growth journey and remains unprofitable, posting a free cash flow deficit of $116 million in 2024. While some cash burn is expected at this stage, investors are watching for signs of improvement to prevent future dilution.
The company has issued only modest share dilution since going public—just 10% since its 2021 SPAC merger—but rising debt ($401 million) and a recently announced $500 million share offering (roughly 6.25% of its market cap) suggest more equity raises may be ahead.
Intuitive Machines (NASDAQ: LUNR)
After a 611% surge in 2024, shares of Intuitive Machines have dropped 53% so far in 2025, sparking debate about whether the pullback presents a buying opportunity or a warning sign.
Yet the broader space economy continues to expand rapidly. McKinsey & Company pegs the global space market at $630 billion in 2023, with projections of $1.8 trillion by 2033. Intuitive Machines has positioned itself squarely within that opportunity, offering lunar transportation, orbital services, lunar data infrastructure, and space-based hardware.
The company’s operations center on lunar missions and infrastructure. Its 10-K states its mission is to “fundamentally disrupt lunar access economics.” With four NASA missions under its belt and additional government clients in defense and foreign markets, it is already making headway.
Financially, Intuitive Machines is generating meaningful revenue—$228 million in 2024—and ended the year with a healthy $328 million backlog, providing visibility into future growth.
Final Thoughts
The space sector is gaining serious momentum, fueled by innovation, geopolitical urgency, and commercial adoption. While timing remains a challenge due to the nature of contracts and government funding cycles, the long-term potential is undeniable. Investors with a high risk tolerance and a long time horizon may find the current pullbacks in stocks like ASTS, RKLB, and LUNR an opportunity to gain exposure to what could become one of the most transformative industries of the next decade.