<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Rocket Lab's first-quarter revenue jumped about 64% as its backlog more than doubled to $2.2 billion.</li><li>AST SpaceMobile won FCC approval to provide commercial direct-to-device service in the U.S.</li><li>The potential SpaceX IPO is putting the spotlight on the space industry.</li><li>10 stocks we like better than Rocket Lab ›</li></ul>SpaceX is reportedly on track to price what would be the largest initial public offering on record in less than a month. Elon Musk's rocket and satellite company is reportedly targeting a Nasdaq debut around June 12 under the ticker SPCX, aiming to raise about $75 billion at a valuation near $1.75 trillion.This sort of attention could be a boon for smaller, publicly traded space companies that have spent years building actual customers and contracts. In fact, the sector has already started to rerate higher in anticipation of the SpaceX listing, with several names extending gains over the past two months.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »Investors who want exposure to the broader space economy, therefore, don't necessarily need to wait for SpaceX. Some public names have been producing the kind of underlying momentum that could carry them higher as the IPO frenzy turns more attention to the category.Here's a closer look at two of them.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTEyOC9zcGFjZS1zdG9ja3MtdG8tYnV5LXNwY3gtc3BhY2V4LmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTEyOC9zcGFjZS1zdG9ja3MtdG8tYnV5LXNwY3gtc3BhY2V4LmpwZyZ3PTcwMA"/>Image source: Getty Images <h2>1. Rocket Lab</h2>Up roughly 57% since SpaceX IPO speculation surfaced in late March, Rocket Lab (NASDAQ: RKLB) has been the most direct publicly traded way to play the broader launch and satellite build-out. The end-to-end space company reported first-quarter revenue of $200.3 million in early May -- up 63.5% year over year and a clear acceleration from the 38% growth it produced for full-year 2025. And demand is clearly surging. Rocket Lab's backlog more than doubled year over year to $2.2 billion, and the company signed 31 new Electron and HASTE launch contracts in the period -- more than it booked in all of 2025. That included a $190 million block order from the U.S. Department of War for 20 HASTE hypersonic test flights. &#34;The demand signal is clear,&#34; founder and CEO Peter Beck said during Rocket Lab's first-quarter earnings call. Of course, investors have to pay up for that growth. With the stock near recent highs and a market capitalization of around $75 billion as of this writing, it's not easy to justify the valuation. The price-to-sales ratio sits well over 100 times sales.Further, it's worth noting that Rocket Lab's medium-lift Neutron rocket -- a key piece of the bull case -- also has yet to fly.<h2>2. AST SpaceMobile</h2>If Rocket Lab is the launch story, AST SpaceMobile (NASDAQ: ASTS) is the satellite-broadband bet. The company is building a space-based cellular network designed to connect directly to standard, unmodified smartphones.First-quarter revenue was just $14.7 million, but management's 2026 guidance calls for $150 million to $200 million for the full year. That implies a roughly 147% year-over-year increase at the midpoint, compared with the $70.9 million in revenue AST SpaceMobile generated in 2025. The company also has more than $1.2 billion in aggregate contracted revenue commitments and ended the quarter with around $3.5 billion in cash, cash equivalents, and restricted cash.Further, in April, the Federal Communications Commission authorized commercial SpaceMobile service in the U.S. And during the first quarter, AST SpaceMobile reached peak data speeds of 98.9 Mbps from an in-orbit satellite to an unmodified smartphone over international waters. Still, the business is in its infancy. CEO Abel Avellan even framed the company as &#34;transitioning from R&amp;D stage to fully scaled operational deployment&#34;on the latest earnings call. Revenue today is small relative to a market capitalization above $30 billion, and the April loss of the BlueBird 7 satellite underscores that any launch setback could push the deployment timeline.<h2>Worth small positions, not big ones</h2>These are very different bets from each other (and from SpaceX for that matter). Rocket Lab is leveraged to launch cadence and the success of Neutron. And AST SpaceMobile's case hinges on rapid satellite deployment and turning regulatory wins into actual subscribers.What they share is execution risk and valuations that have already absorbed considerable optimism. Even so, for investors who want exposure to the space economy as the SpaceX listing brings the category further into the mainstream, small positions across some of these names could make sense. Just be prepared for sharp swings in either direction -- and keep in mind that these are high-risk stocks, so treat these positions accordingly.<h2>Should you buy stock in Rocket Lab right now?</h2> Before you buy stock in Rocket Lab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Lab wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 20, 2026. Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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Rocket Lab's revenue surged 64% in Q1, with a backlog of $2.2 billion, while AST SpaceMobile received FCC approval for direct-to-device service. The anticipated SpaceX IPO is boosting interest in smaller space stocks. Rocket Lab's stock has risen 57% since IPO speculation began, but its high valuation raises concerns. AST SpaceMobile, focusing on satellite broadband, forecasts significant revenue growth but faces execution risks. Both companies present high-risk investment opportunities as the space sector gains attention.

nasdaq

Rocket Lab

AST SpaceMobile

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SPDR S&P Kensho Final Frontiers ETF

Invesco Aero & Defense ETF

Procure Space ETF

Tradr 2X Long ASTS Daily ETF

ISHRS Aero & Def

SPDR S&P Aerospace & Def

ARK Space Exploration & Innovation ETF

NVIDIA

Intel

NVIDIA Corporation

Forget SpaceX. These 2 Space Stocks Could Be the Real Winners Of the Coming IPO Frenzy