Is It Time to Invest in Promising Satellite Companies?

The satellite sector is rapidly evolving, presenting opportunities for investors interested in long-term growth. Here’s a closer look at three key players offering varying levels of risk and reward:

1. Planet Labs PBC (NYSE: PL)

  • Focus: Earth imaging and data analytics.
  • Performance: Doubled in value from its 52-week low, now trading at $4.46 (median price target: $4).
  • Operations: Operates the largest constellation of 200 satellites, providing daily imaging data to over 1,000 global clients, including governments and commercial entities.
  • Recent Developments:
    • Launched 36 new SuperDove satellites in November 2024, expanding its imaging capabilities.
    • Expanded into military contracts, including one with NATO.
  • Financials:
    • Revenue growth: +14% YoY.
    • Zero debt with $249 million in cash reserves.
    • Estimated Q4 earnings report (December 9): EPS forecast at -$0.10.
  • Opportunity: Planet Labs has strong cash reserves, making it a promising long-term play in satellite-based analytics.

2. AST SpaceMobile (NASDAQ: ASTS)

  • Focus: Space-based cellular services for 5G and LTE.
  • Performance: YTD stock increase of 374%; currently priced at $22.90 (median price target: $37.85).
  • Operations:
    • Deploying BlueBird Block 2 satellites, offering 10x faster data speeds than previous generations.
    • Partnerships with Verizon, AT&T, and 45 other mobile operators covering 2.8 billion subscribers.
  • Financials:
    • Funding: $1.5 billion secured for infrastructure expansion.
    • Increased liquidity from $287.6 million to $518.9 million in Q3 2024.
  • Market Potential:
    • $1.1 trillion total addressable market for global mobile wireless services.
    • Targets areas with limited cellular coverage (~90% of Earth’s surface).
  • Opportunity: As a pure-play LEO broadband company, ASTS offers high growth potential, backed by robust funding and partnerships.

3. Momentus (NASDAQ: MNTS)

  • Focus: Satellite bus platforms and launch services.
  • Performance: Highly volatile, trading at $0.56, with significant YTD declines (-66%).
  • Operations:
    • Proven track record with 18 satellite deployments using its Vigoride platform.
    • Recent NASA contract for VADR launch services and a deal with Space Development Agency for the HALO program.
  • Challenges:
    • Received a NASDAQ non-compliance notice for late financial filings.
    • Financial stress: Dilution through a $2.75 million share sale at $0.55/share.
  • Opportunity: High-risk penny stock with potential for gains if funding improves and contracts continue.
  • Market Outlook: The global satellite bus market is projected to grow from $13.6 billion (2023) to $25 billion by 2032.

Takeaway

  • Low-Risk, Long-Term Growth: Planet Labs (PL) and AST SpaceMobile (ASTS) are attractive for their established operations and strong financial footing.
  • High-Risk, High-Reward: Momentus (MNTS) is a speculative play with potential upside but significant financial challenges.

Investors should consider their risk tolerance and the long-term growth potential of these companies in the expanding satellite and space-tech industry.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

This story was originally featured on Tokenist.