IRDM

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.

Rocket Lab has completed 18 launches in 2026 and plans to reach 27 by year-end, representing a 30% increase from 2025. However, the bigger story is the company's $8 billion acquisition of Iridium Communications, which was approved by shareholders on September 24 and is expected to close by mid-2027. The acquisition will enable Rocket Lab to design, build, launch, and operate its own satellite constellations while achieving profitability and positive free cash flow.

Blue Origin won a $700 million NASA contract to build a Mars Telecommunications Network, beating out Rocket Lab. Rocket Lab has formally protested the award to the Government Accountability Office, arguing NASA's selection process violated congressional eligibility criteria.

The dispute could delay the project past the 2028 launch window. However, Rocket Lab's upcoming $8 billion acquisition of Iridium Communications will make it profitable and cash-flow positive.