AST SpaceMobile vs. Rocket Lab: Which Space-Focused Stock Is a Better Buy in 2026?
2026-10-13 20:22
•Brendan Coffey •The Motley Fool
•••• ••••••••• Axe Cap view
AST SpaceMobile vs Rocket Lab: A Space Bet with a South African Lens
Two very different space plays, but only one fits a South African flavour for growth investors.
AST SpaceMobile aims to disrupt cellular broadband by connecting satellites directly to smartphones, a bold but distant vision with profitability pegged for 2029. Its ties with major global telcos like Vodafone hint at long-term promise. Meanwhile, Rocket Lab’s effort to acquire Iridium Communications for $8 billion shapes it into a potential SpaceX rival focused on launch and infrastructure. This deal brings clearer near-term profit prospects, projected for 2027. For South African investors watching USD/ZAR, a Rocket Lab play makes more sense. A stronger dollar often pressures the rand, so timing exposure matters. Locally, the satellite broadband angle through MTN could eventually benefit from AST’s tech, but that’s a wait-and-see. The main risk with Rocket Lab is the acquisition’s integration and its hefty price tag; if that falters, gains may reverse sharply. For AST, missing deployment timelines or regulatory hurdles could delay profits. this is just our opinion and not financial advice
Prefer to watch AST SpaceMobile from the sidelines for now and consider Rocket Lab on dips, given better projected returns and clearer visibility. Exposure through USD/ZAR hedging could smooth rand volatility risks.
- ASTS
- RKLB
- MTN
- USD/ZAR
- Rocket Lab's acquisition integration may fail
- AST SpaceMobile's satellite rollout delays or tech issues
6/10
AST SpaceMobile and Rocket Lab represent two different approaches to the space economy: AST focuses on satellite-based cellular broadband connecting directly to smartphones, while Rocket Lab provides launch services and spacecraft components. Both companies are unprofitable but show different paths to profitability. AST expects to turn profitable by 2029 with 45 satellites operational by end of 2026, while Rocket Lab's proposed $8 billion acquisition of Iridium Communications could position it as a SpaceX competitor. The article concludes Rocket Lab offers a better entry point for growth investors due to more reasonable valuation ratios.
Our take is based on reporting first published by The Motley Fool.
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