AST SpaceMobile (ASTS) is down roughly 69% from its May 2026 peak, while Rocket Lab (RKLB) has fallen more than 60% from its record high, as investors reassessed timelines and competition. Bank of America expects AST to begin initial intermittent cellular coverage in the U.S., Canada, Japan, the U.K. and Saudi Arabia before the end of 2026, backed by partnerships with more than 60 mobile operators serving over 3 billion subscribers. AST launched 13 satellites in August but still faces execution, competition and funding risks. Rocket Lab reported record Q2 2026 revenue of about $234 million, up 62% year over year, and a record backlog of $2.4 billion, up 137%, while it agreed to acquire Iridium Communications and delayed its Neutron rocket debut to 2027. Analysts' target prices imply potential upside of 10% to 157%, and the stock trades at about 41 times sales.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
space industryAST SpaceMobileRocket Labvaluationtelecommunications
Open a keyword to see other news on the same topic.
Related news
- Stocktwits Space Race Weekly: SPCX Weathers Selloff Better Than ASTS, RKLB And FLY — RDW Fares Best
This week SPCX fell 9%, less than ASTS (13%), RKLB and FLY (19% each), while RDW's 6.99% decline was the smallest in the group. The FCC authorized a 15,000-satellite direct-to-device constellation for SpaceX, which agreed to buy Grain Management's nationwide 800 MHz spectrum for a reported $8 billion, though the deal needs FCC approval and the company faces political scrutiny, including Ukraine's claim that service restrictions disrupted drone operations. Rocket Lab pushed Neutron's first flight to 2027 after finding air pockets in a first-stage propellant tank dome, and its shares fell 7% to $55.25, extending a seven-session losing streak. Deutsche Bank upgraded ASTS to Buy with a $93 target, while Piper Sandler downgraded it to Neutral with a $54 target. Redwire announced several updates, including about $13.8 million in additional Stalker drone orders for the National Guard.
- $10,000 in Rocket Lab at Its Record High Is Worth About $3,900 Today. Here's What Gets That Money Back.
Rocket Lab's shares hit a lifetime high of roughly $150 in late May and are now down about 61%, meaning a $10,000 investment made at that peak would be worth about $3,900. Second-quarter revenue rose 62% to about $234 million and the order backlog grew 137% to $2.36 billion, but the Neutron rocket launch has been pushed from this year to 2027. The stock now trades at roughly 36 times expected sales, a sharp contraction from its peak valuation multiple. Space stocks without strong AI stories have been punished as growth-stock enthusiasm concentrated on AI, and the article argues Rocket Lab may need both stronger results and renewed market interest in the space sector to regain its previous valuation high.
- Rocket Lab Just Had the Worst Week in Its History. Here's What I'd Do With the Stock Now.
Rocket Lab shares fell 23% from Oct. 12 to Oct. 16, their worst weekly drop since the company went public five years ago. Two setbacks drove the decline: the first Neutron launch was pushed from the end of 2026 to 2027 due to a defect in a carbon-composite tank, and Ligado Networks challenged the FCC over Rocket Lab's planned $8 billion takeover of Iridium. Launch Services generated 19% of revenue in the latest quarter, while Space Systems accounted for 81%. Backlog reached $2.36 billion at the end of the second quarter, more than double the projected $959 million in 2026 revenue, and analysts expect revenue of $1.33 billion in 2027 and $1.74 billion in 2028. With a $30.5 billion market cap, the stock trades at 32 times sales and is expected to stay unprofitable until 2028; the author suggests waiting for clearer Neutron progress and the closing of the Iridium deal before buying.
- Why Rocket Lab Stock Took Flight on Tuesday
Rocket Lab shares rose as much as 10% on Tuesday and were up 8.4% as of 2:51 p.m. ET, after the company said the Neutron rocket's second stage and thrust module had left its factory for Launch Complex 3 in Wallops Island, Virginia, where the thrust module will be placed on the launch mount for checkouts and systems demonstrations. Cantor Fitzgerald analyst Andres Sheppard reiterated an overweight rating and a $122 price target, suggesting potential gains of 127% from Monday's close, and expects a Neutron launch in the second quarter of 2027. The article notes that Neutron's inaugural launch was delayed to 2027 after a defect was found in the propellant dome. Rocket Lab stock had been volatile, gaining 115% in the first five months of 2026 before plunging more than 61% since the recent SpaceX IPO, and it trades at 44 times sales versus 61 times sales for SpaceX.
- Why Rocket Lab's Recent Fall Is Overblown
Rocket Lab shares fell more than 25% as of Oct. 16, after a small manufacturing defect pushed the Neutron rocket launch back to 2027 and Space Exploration Technologies' momentum added pressure. The author argues the drop is overblown: the company has a backlog above $2.3 billion, with about 45% expected to convert into revenue within a year. Second-quarter revenue rose 62%, and the third quarter looks set to keep that growth even without Neutron. The space systems segment, which covers components, satellites and spacecraft, remains Rocket Lab's main source of revenue. The author sees the dip as an opportunity, while noting the stock is still a high-risk investment.
- AST SpaceMobile Falls 8% as Piper Sandler Cuts Target to $54 on SpaceX Competition; Rocket Lab Slips
Piper Sandler downgraded AST SpaceMobile to Neutral from Overweight and cut its price target to $54, citing lower confidence in the company's satellite launch pace over the next two years. The firm pointed to SpaceX's expanding direct-to-cell plans, warning SpaceX could limit launch availability for partners or pressure pricing through its own service. Clear Street reiterated a Buy rating and $115 target, arguing AST SpaceMobile remains roughly six months ahead of SpaceX in direct-to-cell. Three more BlueBird satellites arrived at Cape Canaveral ahead of a planned launch, but no firm date has been set. AST SpaceMobile shares fell 8% to $43.38, a steeper drop than Rocket Lab (down 2% to $62.77) and SpaceX (down 2% to $152.88).
Related markets
Latest news
- Palantir Technologies (PLTR) Deepens Sovereign AI Deployments Across Sensitive Industries
Palantir Technologies (PLTR) announced a new wave of sovereign AI deployments with partners including L3Harris, McCarthy, NVIDIA, Ondas, and Tampa General Hospital. The collaborations span sensitive sectors such as defense, advanced manufacturing, construction, and healthcare, focusing on real-world AI workflows and data control. Clients use Palantir's platforms to fine-tune models, keep control over their data, and pursue operational efficiency. The article argues the moves reinforce the company's software moat but also heighten reliance on large U.S. government and defense contracts and a customer base skewed heavily toward the U.S. It suggests tracking upcoming earnings updates through late 2026 for disclosures on total contract value and how much demand comes from outside the U.S.
- Down 40%, Is Robinhood Stock a Buy on the Latest Dip?
Robinhood (HOOD) shares are down about 40% from their all-time highs, and a disappointing after-the-bell third-quarter earnings report on Oct. 27 added to the pressure. Crypto revenue fell 55% to $120 million, the fourth straight quarterly decline, while overall transaction revenue rose 19% to $867 million, helped by options and prediction-market event contracts. Adjusted EPS fell 3% to $0.60, though it beat the $0.56 analyst consensus. October deposits topped $13 billion, including $6 billion from the Dell Foundation. The article calls the stock not a bargain at a forward P/E of about 26.5 on 2027 estimates, but says it is nearing the point where investors may start to take interest as crypto becomes less of a drag.
- Bitcoin ETF Investors Head for the Exits After Record Binance Hack
U.S. spot Bitcoin ETFs saw $643.2 million in outflows on Friday, their biggest outflow of October and first full session after the roughly $6.4 billion Binance hack. Ethereum ETFs extended their outflow streak to five days, about $431 million, and Solana ETFs lost about $72 million over the week. Bitcoin fell about 4% on Friday, with more than $1.3 billion in leveraged positions liquidated, before steadying near $77,520 on Saturday. Binance pledged to cover all losses with company funds and an emergency reserve, while Tether and Circle froze more than $2.3 billion in stolen stablecoins. The article notes the drop was far smaller than the nearly 11% plunge after a failed attack on Binance in 2018.
- Everything changed for the oil, AI and bond trades over the past month
Treasury yields and oil futures moved together through most of 2026, but that link broke in October. According to BlackRock's Jeffrey Rosenberg, treasuries and oil had an 80% correlation this year, and the breakdown reflects the AI trade's retreat, which the market now sees as a bigger risk than geopolitics. After a Nasdaq sell-off on Friday and Google's biggest single-day decline in its history, which wiped out half a trillion dollars in value, yields fell as investors read AI weakness as a sign of a softer U.S. economy. Fed Chair Kevin Warsh disagreed, arguing that investment is broadening beyond AI, even though business investment rose 12.7% in Q3, the biggest gain outside the pandemic since 2011. Rosenberg says long-dated Treasuries remain the only effective hedge in a disinflationary scenario, but high inflation and oil prices limit that role, and bonds could face pressure if the AI boom persists alongside U.S. fiscal challenges.
- Greg Abel Just Spent $330 Million on This Tech Stock. Here's What It Means for Investors.
In mid-October, Berkshire Hathaway under CEO Greg Abel put another $330 million of idle cash into Bending Spoons (BSP), adding to the roughly $600 million stake it bought in the company's IPO earlier this year. Bending Spoons, a $30 billion company, owns digital brands including Eventbrite, Evernote, Vimeo, AOL and Remini, with over 1 billion registered users and over 400 million monthly users. Its long-term debt rose from nearly $2.3 billion in mid-2025 to nearly $4.1 billion by June 2026, and the Berkshire share sale was a dilutive private placement of newly issued stock. Second-quarter revenue reached $704 million, up 126% year over year, with per-share earnings of $0.28 versus $0.11 a year earlier and adjusted earnings of $0.46 versus $0.17. Analysts expect 47% revenue growth next year, and the article argues the investment shows Abel's Berkshire is willing to seek technology opportunities despite taking on more risk.
- 4 Critical Minerals Stocks That Could Benefit as the U.S. Reduces Reliance on China
The U.S. push to cut reliance on China for critical minerals is benefiting related stocks, backed by government support such as grants, loans and tax credits. Freeport-McMoRan posted third-quarter revenue of $7.5 billion, up 8%, and EPS of $0.81, up 76%, with shares up more than 29% this year. MP Materials, the only large-scale U.S. rare-earth processing site, lifted NdPr sales 127% to 1,006 metric tons, but its shares are down more than 19% this year. USA Rare Earth, which has about $1.6 billion in U.S. Commerce Department funding, is still unprofitable and building out facilities, with shares down more than 12%. TMC The Metals Company, which is not yet producing minerals, is the riskiest of the four, with shares down more than 55% this year.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.