Space stocks are not limited to SpaceX.

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The upcoming SpaceX IPO will open the largest channel for investors to enter the space economy, but in this cosmic race, notable listing opportunities go far beyond SpaceX.

Rocket Lab, which is listed on Nasdaq, reported a 38% year-on-year revenue increase last year to over $600 million. As of the end of Q1 this year, its backlog of orders reached $2.2 billion, with more than 70 launches pending. In March, the company secured a $190 million contract from the U.S. Department of Defense and is participating in the construction of the "Golden Dome" space-based missile defense system. With continued space militarization and the rising concept of space AI data centers, this backlog is expected to further expand.

From a valuation perspective, Rocket Lab’s stock has risen more than 50% this year, and its price-to-sales ratio is roughly equivalent to SpaceX’s target valuation—making it far from cheap. However, its feasibility for high-speed growth from a $600 million annual revenue base is far higher than SpaceX maintaining the same speed at a larger base. For investors interested in the space economy but unwilling to bet entirely on SpaceX, Rocket Lab offers a relatively more flexible entry point.

Besides Rocket Lab, satellite communication operators such as AST Spacemobile, Viasat, and Iridium each have their own growth logic. Yet facing dual pressure from SpaceX and Amazon, the spectrum assets held by smaller operators may ultimately become their true value—the logic for this was confirmed in Amazon's acquisition of Globalstar in April for its spectrum assets.

Medium-Lift Rocket Neutron: Narrowing the Cost Gap with SpaceX

Sending cargo into Earth's orbit is itself a very high technical barrier. Globally, companies with such capabilities are rare. From Virgin Orbital to Astra, many listed companies have failed in their attempts at orbital launches; even Blue Origin, founded by Amazon’s Jeff Bezos, has suffered notable setbacks in this area.

Rocket Lab was founded in New Zealand and is now headquartered in California. It has successfully completed 88 small-payload rocket launches, mainly sending cargo to low Earth orbit, with only four failures—the last in 2023. This success rate is unique among listed companies and forms the core foundation of its trustworthiness with defense clients. The company is led by self-taught engineer Peter Beck.

Rocket Lab is not content to just stay in the small-payload market. The company plans to conduct its first launch of the medium-lift Neutron rocket this year, with a maximum payload of 13 tons and launch cost of about $4,000 per kilogram, roughly on par with some versions of SpaceX's Falcon 9. In comparison, SpaceX’s Falcon Heavy can send nearly 64 tons to low Earth orbit at a cost of about $1,500 per kilogram. While Neutron’s entry won’t threaten SpaceX's scale advantage, it will allow Rocket Lab to compete with SpaceX across a wider range of missions.

The company's CFO Adam Spice said that if the space AI industry accelerates, demand for larger payloads will increase, and Rocket Lab might consider developing larger rockets to get closer to SpaceX.

Dual Engines: Defense Contracts and AI Layout Drive Backlog Growth

The core attraction of Rocket Lab to defense clients is its flexibility. Small rockets are highly maneuverable and can quickly deploy reconnaissance satellites as needed, whereas defense clients typically don’t want to share SpaceX’s launch resources with other commercial users.

In March, the company won a $190 million Pentagon contract to use its Electron rocket to test hypersonic flight conditions; meanwhile, it's cooperating with defense contractor RTX to participate in the U.S. "Golden Dome" project. During last month’s earnings call, Peter Beck said the launch backlog has surpassed 70 rockets.

Rocket Lab is also making moves in the data center direction. Spice stated that the company intends to pursue deep vertical integration: “We’d rather build data centers in orbit ourselves, then lease capacity to customers, rather than just build facilities for them,” he said.

Rocket Lab's stock is not cheap. It has risen over 50% this year, and its price-to-sales ratio is similar to SpaceX’s target valuation, reflecting a considerable degree of optimism.

The key difference is the starting point. Rocket Lab grows from a smaller revenue base, requiring much less absolute growth than SpaceX to accomplish the same task at its scale. In other words, Rocket Lab can more easily "grow into" its current high valuation, whereas SpaceX must sustain its market pricing at a much faster rate.

Other Space Concept Stocks: Spectrum Assets May Become M&A Trump Card

The investment logic for other listed space companies is more differentiated. The market prospects of lunar exploration specialist Intuitive Machines are still unclear; satellite communication operators AST Spacemobile, Viasat, and Iridium have more defined growth drivers—including space mobile phone connectivity as well as (for Iridium) IoT satellite connectivity—but their tracks are increasingly competitive.

According to New Street Research, satellite operators achieved a combined revenue of $24 billion last year, and this number is expected to continue rising over the next few years, although it may not reach SpaceX’s cited $16 trillion potential market size in its IPO documents. Currently, SpaceX's Starlink accounts for about half the market; Amazon is also speeding up its deployment via subsidiary Amazon Leo, poised to become another cash-rich competitor.

However, smaller operators hold a trump card: spectrum assets, i.e., exclusive rights to transmit data and voice on certain frequency bands. In April, Amazon announced its acquisition of satellite operator Globalstar, specifically highlighting its satellite network and spectrum assets. This precedent means that even if smaller operators can't build strong independent businesses, their spectrum value may provide investors with a M&A premium exit path.

SpaceX may be synonymous with the space economy for most investors, but investment opportunities on the cosmic track go far beyond this.

Risk Disclosure and DisclaimerThe market carries risks; invest with caution. This article does not constitute individual investment advice, nor does it take into account the unique investment objectives, financial circumstances, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article suit their specific situation. Investments made based on this are at your own risk. ```