Space commercialization trends are taking off, and investing in satellite stocks offers investors a way to profit from what could be one of the next decade's biggest tech trends. Satellite stocks are equities that give investors an ownership position in publicly traded companies with significant exposure to the satellite technologies industry.
Between consumer-focused communications companies and operators in the defense industry, satellite technologies appear poised to be a strong growth industry. In addition to investing in industrial ETFs that offer broad exposure to the trend, investors may want to consider adding individual stocks to their portfolios.
Best satellite stocks to buy now
1. AST SpaceMobile
NASDAQ: ASTS
Key Data Points
AST SpaceMobile (ASTS +14.34%) is a provider of space-based telecommunications services. The company's satellite network allows it to provide cellular broadband services that can be used by mobile devices without the need for hardware add-ons or modifications.
A significant portion of the world still lacks reliable cellular service, and AST's technologies are helping to address this problem. The company has signed an agreement to provide satellite communication services that will be used by Vodafone and redistributed to customers. The contract runs through 2034 and will see SpaceMobile's services distributed across more than 20 countries in Europe and Africa. Vodafone and SpaceMobile are also collaborating on a satellite system to bring cellular broadband service to India.
The company is also making its cellular broadband services available in areas that already have coverage options. Through a deal with Ligado Networks, AST has secured a license for more than 80 years of access to premium lower mid-band wireless spectrum in the U.S. and Canada.
In addition to positioning for growth opportunities in the private sector, SpaceMobile has also been scoring wins with public sector customers, nabbing a $43 million contract with the U.S. Space Development Agency. For risk-tolerant investors seeking potentially lucrative satellite stocks, AST SpaceMobile is a top name right now.
2. BlackSky Technology
NYSE: BKSY
Key Data Points
BlackSky Technology (BKSY -2.72%) is a space-based tech company that uses satellites to provide imaging, monitoring, and analytics. The company primarily provides services to customers in the defense industry, and its satellite network and Spectra analytics software help provide key information and decision-making tools that allow for the management of key strategic locations, economic assets, and military events.
The company has been winning contracts with government customers and building its service backlog. The tech specialist's satellites already provide ultra-high-resolution imaging for active monitoring in conjunction with artificial intelligence (AI)-powered analytics, but it's not resting on its laurels.
BlackSky is rolling out its Gen-3 satellites and expects to have eight in orbit by early 2026. Preliminary responses have been positive, and the new satellite constellation looks poised to power the company's next growth phase.
BlackSky's subscription-based service provides customers with an all-in-one monitoring and analytics platform while setting the stage for the company to see strong recurring revenue streams. For investors seeking satellite stocks with exposure to the defense industry, BlackSky stands out as a top play.
3. Viasat
NASDAQ: VSAT
Key Data Points
Viasat (VSAT +4.15%) operates a global communications platform through its network of satellites and related support services. The company has typically generated most of its sales from government customers, but it also generates a substantial portion of its sales from private-sector clients for services that include in-flight internet connectivity. Viasat has also partnered with other leaders in satellite communications, including AST SpaceMobile.
Viasat is an established operator in the satellite telecommunications space with substantial technology and spectrum resources that allow it to provide service coverage across land, air, and sea. But its stock hasn't always been a great performer due to profitability and debt concerns. Conditions on those fronts could be improving, potentially paving the way for the company to be a strong performer for patient investors.
Viasat's government SATCOM business has been posting encouraging growth, and it could still be in the relatively early stages of a much bigger long-term expansion cycle. Demand for its defense and advanced technologies business is booming, and the company is seeing substantial profitability improvements thanks to high-margin contracts in the category.
While Viasat may not expand its business at the same breakneck pace as some other players in the satellite industry, its stock also trades at valuation multiples that are far less growth-dependent. For investors seeking potential value plays among satellite stocks, Viasat could have the makings of a strong portfolio addition.
4. Redwire
NYSE: RDW
Key Data Points
Redwire (RDW +7.83%) is focused on the space economy, and it's placing some big bets on the future of satellite technologies. The company is supplying the U.S. Space Force with satellite buses and providing the Department of Defense with various space and satellite infrastructure technologies. It also provides support for multinational small satellites and mission berthing and docking.
ViaSat uses Redwire's radiofrequency (RF) antenna technology for the Link 16-capable communications satellites it supplies to the U.S. and NATO countries, and its RF antenna technologies are also used in other small satellites. The company is providing key infrastructure to support the growth of the space industry.
In addition to investments in satellite and drone technologies that are generating revenue, Redwire is also setting the stage for growth plays that could have massive long-term payoffs. It's betting that there will come a time when the components for many satellites and spacecraft are manufactured and assembled in space. While it's too early to say whether Redwire's space-manufacturing bets will pay off, the stock is a speculative play that could be a good fit for risk-tolerant investors.
5. Iridium Communications
Iridium Communications (IRDM -1.19%) is a satellite technologies company that provides voice, messaging, and position, navigation, and timing (PNT) services. The company's tech helps boats and planes stay connected in places where they might otherwise be unable to access communication services.
The company already has a sizable constellation of satellites active in orbit and on reserve, and it's continuing to launch new systems. Iridium also owns valuable communications spectrum that should help it tap into space tech trends. It's also possible that another player could opt to buy Iridium's spectrum license at a substantial premium.
Using its satellite network and spectrum access, Iridium is gearing up to launch its satellite time and location (STL) service. The tech could wind up providing major improvements over existing GPS technologies and other satellite-based navigation services. The market for STL services is expected to grow at a rapid pace, and Iridium's offering in the category could play a key role in powering the company's growth over the next decade.
6. Globalstar
Globalstar (GSAT -4.19%) is a designer and operator of low-Earth-orbit (LEO) satellites. The company has continued to win government contracts, with key wins in the defense category and other areas paving the way for the business to see strong growth as existing deals are completed. Notably, Globalstar also has a big partnership with Apple (AAPL -1.04%).
Through the partnership, Globalstar provides services that allow iPhone users to text emergency services and request roadside assistance. The satellite tech also allows users to message friends and family and share location data. With its growing network of satellites, Globalstar is continuing to expand its mobile-satellite service (MSS) and Internet-of-Things (IoT) offerings.
Between its partnership with Apple, contract wins with the U.S. Army and related contractors, and other growth drivers, the company has catalysts on the horizon that could help it deliver big sales and earnings growth.
7. EchoStar
EchoStar (SATS -0.23%) sold its spectrum license to SpaceX in a $17 billion deal. The spectrum sale has dramatically improved Echostar's balance sheet, and it also provided another big potential benefit to investors.
As part of the deal, EchoStar received an $8.4 billion stake in SpaceX. That means that investing in EchoStar is one of the easiest ways for retail investors to build a position in SpaceX -- a private company that is not traded on public markets.
If SpaceX's valuation continues to grow at a rapid pace, EchoStar shareholders also stand to benefit. In addition to this potential growth driver, EchoStar continues to own its Dish Network and Boost Mobile subsidiaries.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Viasat (NASDAQ:VSAT) | $6.2 billion | 0.00% | Communications Equipment |
| AST SpaceMobile (NASDAQ:ASTS) | $32.2 billion | 0.00% | Diversified Telecommunication Services |
| BlackSky Technology (NYSE:BKSY) | $990.9 million | 0.00% | Professional Services |
| Redwire (NYSE:RDW) | $1.9 billion | 0.00% | Aerospace and Defense |
| Iridium Communications (NASDAQ:IRDM) | $2.0 billion | 3.05% | Diversified Telecommunication Services |
| Globalstar (NASDAQ:GSAT) | $7.6 billion | 0.00% | Diversified Telecommunication Services |
| EchoStar (NASDAQ:SATS) | $35.5 billion | 0.00% | Media |
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Investing in satellite stocks
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