SpaceX’s impending IPO is catalyzing a broader surge in the space industry, which McKinsey estimates could balloon to a $1.8 trillion economy by 2035. Investors are closely monitoring two key players: AST SpaceMobile (ASTS) and Planet Labs (PL), both of which are positioned to capitalize on this growth, albeit in different segments of the market. AST SpaceMobile aims to create a cellular broadband network via satellites, while Planet Labs focuses on Earth-imaging technology for various sectors, including government and agriculture.
AST SpaceMobile is still in its capital-intensive buildout phase, having raised $3.9 billion to support its satellite launches, but it faces challenges in achieving its ambitious deployment goals. In contrast, Planet Labs is further along in its commercialization journey, generating $308 million in revenue last year and enhancing its offerings through partnerships, such as its collaboration with Nvidia to develop AI capabilities.
Given the current trajectories, Planet Labs appears to be the more attractive investment, with a more mature business model and a clearer path to profitability compared to AST SpaceMobile’s ongoing capital needs and launch challenges.
Source: fool.com