Space exploration is no longer limited to government agencies with massive budgets.
As private companies race to dominate the final frontier, investors are looking to AST SpaceMobile (NASDAQ:ASTS) and Rocket Lab USA (NASDAQ:RKLB) to see which stock offers a smoother flight
While both companies operate above the atmosphere, their business models are worlds apart. AST SpaceMobile focuses on providing cellular broadband directly to standard smartphones from space, while Rocket Lab provides a full suite of launch services and satellite components. The case for AST SpaceMobile AST SpaceMobile aims to eliminate dead zones by building a satellite constellation that connects directly to the billions of mobile phones already in use.
The company works with mobile network operators like AT&T (NYSE:T), Verizon (NYSE:VZ), and Vodafone (NASDAQ:VOD) through revenue-sharing agreements rather than selling directly to consumers. Customer concentration like this adds a layer of risk to the business, as the company depends on these commercial partners for the majority of its revenue. In tech stocks like this, growth often precedes profits.