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. 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
Best satellite stocks to buy now
Companies 1 - 2
1. AST SpaceMobile
AST SpaceMobile (ASTS -9.69%) 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
BlackSky Technology (BKSY -3.77%) 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 AI-powered analytics, but it's not resting on its laurels.
BlackSky is rolling out its Gen-3 satellites and expects to have eight of them operating 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.
Companies 3 - 4
3. Viasat
Viasat (VSAT 1.52%) 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 including in-flight internet connectivity. Viasat also has partnered with other leaders in satellite communications, including AST SpaceMobile.
While 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, 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
Redwire (RDW 0.44%) 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. Specifically, 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.
Satellite ETFs
Related investing topics
Investing in satellite stocks
The space economy is heating up, and demand for satellite communications, imaging, and other technologies looks poised for strong growth in both the public and private sectors. For risk-tolerant investors, this category of industrial stocks offers an exciting and potentially lucrative way to gain exposure to space industry trends.
FAQ
Satellite Stock FAQ
Can you invest in Starlink stock?
It is not possible to invest in Starlink stock. Starlink is a satellite communications service that is offered by SpaceX and does not have its own publicly traded stock. SpaceX is a private company.
Is SpaceX publicly traded?
Should I invest in satellite stocks?
Satellite stocks generally come with a high level of risk, but they offer the potential for explosive returns. The relatively large risk profile suggests that they may not be a good fit for more conservative investors. Alternatively, satellite stocks could be a good portfolio addition for growth-focused investors with high risk tolerance.
Are satellite stocks a good investment?
As a category, satellite stocks have the potential to tap into strong growth trends that could make them good investments over the next decade and beyond. On the other hand, investors should keep in mind that stocks in the category generally come with above-average levels of risk, and each company should be evaluated on an individual basis.
