Explore the New Frontier: Must-Watch Space Stocks Beyond SpaceX and Boeing for 2025

By James Rogers

Following a significant year for SpaceX – contrasted by challenges faced by Boeing – here’s what to anticipate in the upcoming year

2024 proved to be a noteworthy year for the space industry, characterized by the rising momentum of SpaceX, the difficulties encountered by Boeing Co.’s Starliner, and a multitude of activities from various companies. What should we foresee in 2025?

Ehud Behar, a professor of physics at the Technion Israel Institute of Technology, expressed that he was not taken aback by the achievements of companies like AST SpaceMobile Inc. The space-based broadband firm launched its inaugural five commercial satellites into orbit the previous year and also declared agreements for launch services to furnish space-based cellular broadband service coverage in critical markets such as the U.S., Europe, Japan, and the U.S. government.

The launch initiative from Cape Canaveral Space Force Station is scheduled for 2025 and 2026.

AST SpaceMobile’s stock, ASTS, concluded 2024 with an increase of 249.9% over the year.

“In general, I am not astonished by the optimism in the market,” Behar informed MarketWatch. “I believe there is significant potential in the space sector that has yet to be unlocked.”

Related: This space stock has surged over 400% this year as a second lunar mission approaches

Andrew Chanin, CEO of Procure AM and creator of the Procure Space ETF UFO, brought attention to the progress of Rocket Lab USA Inc. (RKLB) and Intuitive Machines Inc. (LUNR).

“We’re beginning to see those names that have successfully maneuvered through those early de-SPAC phases,” he remarked to MarketWatch. “Some of them are beginning to exhibit some remarkable advancements.”

The space-launch firm Rocket Lab went public in 2021 through a merger with a special-purpose acquisition company (SPAC), Vector Acquisition Corp. The Long Beach, California-based company recently achieved a significant milestone by successfully executing launches in two different hemispheres within a span of less than 24 hours.

Rocket Lab has indicated strong demand for its Electron rocket and is planning its inaugural test launch of the new Neutron rocket in 2025, followed by three launches in 2026.

The stock of the company increased by 360.6% in 2024.

Related: Acquire this space stock, recognized as a ‘foundation of long-term lunar infrastructure’

Intuitive Machines Inc. made its debut in 2023 through a merger with another SPAC: Inflection Point Acquisition. The year 2024 was monumental. In February, the Houston-based space-exploration company’s Odysseus lander marked a milestone by being the first commercial lander to successfully touch down on the moon’s surface. Intuitive Machines has plans to dispatch its second mission, IM-2, to the lunar surface in early 2025.

The firm is securing significant contracts. Recently, it disclosed that it has won additional agreements from NASA’s Near Space Network. In a statement, Intuitive Machines CEO Steve Altemus remarked that the awarded contracts enable his company to leverage the $4.82 billion maximum potential value of the NSN agreement.

In September, shares of Intuitive Machines experienced a surge after the company announced that NASA had awarded it the NSN contract for communication and navigation services for missions in near space, extending from the Earth’s surface to beyond the moon. In late August, Intuitive Machines was also granted a $116.9 million NASA contract to deliver six science and technology payloads to the moon’s south pole. Against this backdrop, the company’s stock climbed by 610.8% in 2024.

Intuitive Machines constitutes the top holding of the Procure Space ETF, succeeded by Rocket Lab, Earth-imaging firm Planet Labs PBC (PL), satellite-services company Globalstar Inc. (GSAT), and space-mission partner MDA Space Ltd. (CA:MDA).

Related: Rocket Lab’s shares rose after the company completed two launches within less than 24 hours

The small-cap manufacturer and supplier of space equipment Redwire Corp. (RDW) has also captured attention recently. The company is positioned to gain from a robust stream of new business, according to a recent report from research firm Alliance Global Partners, which increased its price target to $16 from $10. The shares of the company concluded 2024 with a surge of 477.5%.

Alliance Global Partners also emphasized Intuitive Machines, as well as space-based intelligence company BlackSky Technology Inc. (BKSY) and nanosatellite expert Spire Global Inc. (SPIR). Based in Vienna, Va., Spire Global “operates one of the largest satellite constellations utilized to gather data and subsequently provide analytics for weather and aviation forecasts,” wrote Alliance Global Partners analyst Brian Kinstlinger.

“The company achieved profitability in 2024 (pending a restatement), and a recent divestiture of its maritime division has led to an anticipated solid balance sheet,” he added.

Virgin Galactic Holdings Inc. (SPCE) completed the final commercial flight of its Unity spacecraft in 2024 and is set to devote 2025 to its new Delta-class spacecraft, which are on pace for commercial operation in 2026.

In a recent memorandum, KeyBanc Capital Markets sustained its sector-weight rating for Virgin Galactic. “We perceive [Virgin Galactic’s] long-term objectives as significantly appealing, and it is currently laying the groundwork to achieve robust future profitability,” remarked KeyBanc Capital Markets analyst Michael Leshock in the memorandum.

Related: AST SpaceMobile shares decline after Q3 loss widens

Boeing Co. (BA) encountered a less than commendable 2024. In September, the company’s Starliner capsule returned uncrewed from the International Space Station after a mission troubled by thruster malfunctions and helium leaks. NASA astronauts Butch Wilmore and Suni Williams, who were transported to the ISS aboard Starliner in June, will now return to Earth with SpaceX’s Crew-9 mission in spring 2025.

The Starliner saga thrustthe partnership between NASA and Boeing is currently under a glaring spotlight. For instance, when NASA initially contemplated the idea of Williams and Wilmore getting a lift with SpaceX, Boeing released a declaration stating that Starliner could still safely return the astronauts home.

Technion professor Behar is eager to witness Boeing move past the Starliner issue. “I am looking forward to Boeing picking themselves up in 2025,” he informed MarketWatch. “They are in a challenging position – I just hope they don’t throw in the towel and continue to compete.”

Related: Space stock Redwire surged this year and is poised for more ‘investor enthusiasm’: analyst

Behar pointed out that Starliner had safely returned to the planet, albeit without Wilmore and Williams. “We desire more than a single company to ferry astronauts to the Space Station,” he stated.

In contrast, competitor SpaceX is thriving. “I am astonished by their advancement,” Behar mentioned to MarketWatch.

SpaceX conducted over 130 launches in 2024, which included four Starship flight tests. In October, SpaceX utilized mechanical arms, referred to as “chopsticks,” for the first time on the launch platform to capture the Starship rocket booster.

The subsequent month, President-elect Donald Trump accompanied his new ally, SpaceX CEO Elon Musk, to observe the sixth flight test.

“Starship has immense potential,” Behar told MarketWatch. “We haven’t had a heavy lift vehicle since the decommissioning of the Space Shuttle.”

Related: What’s next for Boeing following the Starliner issue?

“The entire notion of employing a heavy lifter for space travel is fascinating,” he continued. “What I find compelling is the possibility of creating something similar to what the shuttle and ISS were intended to be – a central hub for managing and maintaining spacecraft. An orbiting Starship could serve that purpose.”

NASA intends to utilize Starship for its Artemis III mission, aiming to land humans on the lunar surface in 2027. Musk, known for his bold statements, established another ambitious goal for Starship in September. “SpaceX anticipates launching approximately five uncrewed Starships to Mars within two years,” Musk posted on the social-media platform X, previously known as Twitter, which he has owned since 2022. “If all these missions land proficiently, then crewed journeys could happen in four years. Should we face obstacles, then the crewed missions might be delayed by another two years.”

Musk seems to have Trump’s attention, and vice-versa. With the former Republican president slated to return to the White House on January 20, a potential sharing of policy directions and idea exchanges may ensue, noted Procure AM’s Chanin. “Many people see EVs as a Musk/Trump exchange,” he remarked, adding that the space sector should be viewed in a similar light.

Related: This space stock recorded its lengthiest winning streak in five months

“Now presents a particularly intriguing moment to evaluate the role of space in the broader global economy,” Chanin stated, specifically pointing to the “cislunar economy,” which denotes the region between Earth and the moon or the moon’s orbit.

He also emphasized space-based communications and upcoming lunar missions. “When we return people to the moon,” he expressed, “we will conduct extensive research on what resources are available there.”

-James Rogers

This material was developed by MarketWatch, operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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01-02-25 1106ET

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