Among them are Rocket Lab (NASDAQ:RKLB) and AST SpaceMobile (NASDAQ:ASTS), two companies pursuing very different opportunities. Rocket Lab is an end-to-end space company that provides launch services and other space-related solutions for the space and defense industries. AST SpaceMobile, meanwhile, is building the world’s first space-based mobile broadband network, seeking to deliver 4G and 5G broadband to devices around the world.
Perhaps not surprisingly, given the scale of what they’re trying to build, both companies are still operating at a loss. (SpaceX is as well, for that matter.)
However, their respective sales – and share prices – have been diverging over the past few months. While Rocket Lab has been steadily increasing its sales (double-digit sequential growth last quarter), AST saw its sales decline by ~73% from the previous quarter. Investors have rewarded that divergence: RKLB shares have climbed 58% over the past three months, while ASTS has slipped about 9%.
Is that the direction things are likely to be headed going forward? One top investor, known by the pseudonym Juxtaposed Ideas, isn’t so sure RKLB’s ride upward is set to continue.
“I urge investors to temper their intermediate term expectations, since it remains to be seen when the company may report break even and/or cash flow profitable operations,” states the 5-star investor, who is among the top 2% of stock pros covered by TipRanks.
