🚀 ASTS vs RKLB｜Both are space stocks, which one should you buy? This article helps you decide.

🚀 The space sector is heating up again recently, and the two most debated stocks in our group are these two — should we choose ASTS or RKLB?

Let's do a serious side-by-side comparison today. 🆚

First, let's talk about$AST SpaceMobile(ASTS.US) and what it does

AST SpaceMobile operates low-earth orbit satellites, allowing your regular smartphone to directly connect to satellite 4G/5G signals without any special equipment — not like Starlink which requires a special antenna, just your pocket iPhone connecting directly. It has already signed agreements with AT&T and Verizon, with Verizon set to officially launch services to users in 2026, targeting the deployment of 45-60 satellites by the end of this year.

If this story succeeds, it will be truly revolutionary — 4 billion mobile phone users worldwide without stable signals are potential customers.

Next, let's talk about$Rocket Lab(RKLB.US) and what it does

Rocket Lab is the second-largest commercial rocket launch company in the US. Its small Electron rocket has launched 83 times with a 100% success rate. Q3 revenue was $155M, up 48% year-over-year, hitting a record high, and it also secured an $816M SDA defense satellite contract. Its medium-sized Neutron rocket is set for its maiden flight in Q4 this year, positioning it against SpaceX's Falcon 9.

RKLB isn't just about launching rockets; it also builds satellites and space systems, making it an end-to-end space company.

Let's get straight to the two most critical disagreements. ⚠️

Disagreement 1: Does it have revenue?

RKLB currently has quarterly revenue of $180M, while ASTS only had $14.7M last quarter. Buying ASTS means buying into the expectation of "$1.9 billion in revenue by 2028," while buying RKLB is buying a business that's already running smoothly now.

Disagreement 2: Which is more expensive?

Analysts expect ASTS revenue CAGR from 2025-2028 to be +200%, while RKLB's is +38%; but in terms of valuation, ASTS trades at only 16x PS based on its 2028 projected revenue, while RKLB is at 26x.

Faster growth, yet lower valuation — that's the core reason why media outlets like Motley Fool are currently more bullish on ASTS.

But ASTS has one big red flag that can't be ignored

American Tower is a strategic major shareholder of ASTS and recently reduced its stake by a full 49%, cashing out nearly $1.6 billion. This wasn't a planned reduction — it was an active, timed sell-off. A strategic shareholder with deep knowledge of telecom infrastructure making a large-scale reduction is a signal that's hard to ignore.

RKLB's insider selling has been relatively mild. CEO Peter Beck sold $141 million according to a predetermined plan, which is part of a normal compensation arrangement.

🔺 So, how to choose?

The global space economy reached $626 billion in 2025 and is expected to grow at an average annual rate of 12% to surpass $1 trillion by 2034. This pie is big enough for both to get a slice.

Aggressive/High-volatility: Choose ASTS, betting that direct satellite-to-phone connectivity will change the communications landscape;

Conservative/Visible cash flow: Choose RKLB, wait for the Neutron rocket's maiden flight before adding more;

😄 Lazy solution: Buy half of each, as both are beneficiaries of the space story anyway. $Defiance Daily Target 2X Long RKLB ETF(RKLX.US) $Tradr 2X Long ASTS Daily ETF(ASTX.US)

Which one are you choosing? 👇