The Space Economy Is Lifting Off – And These Undervalued Stocks Are Riding Shotgun

Let’s talk space stocks – because names like Rocket Lab (RKLB), AST SpaceMobile (ASTS), Planet Labs (PL), and BlackSky (BKSY) have been on a tear lately. 

Since early April, all four of these names have more than doubled – in just three months – led by a nearly 215% gain in BSKY stock. 

And despite this surge, we think they’ve still got miles of orbital runway left.

Why? Because the space economy is finally getting real. It’s no longer some far-off “Jetsons” fantasy.

Space is becoming a new layer of our economic infrastructure, as foundational as electricity, railroads, or the internet. 

For decades, we launched satellites into orbit mainly for GPS and weather reporting. But that is now in the past.

The future? We’re building an entirely new economy in space – and rockets are the foundation.

Just like fiber optic cables enabled the digital economy, rockets and satellites are enabling the orbital economy. 

And innovations in this space are starting two powerful, fast-growing, and, most importantly, monetizable verticals: National Security and Communications. 

We see this unlocking a massive economic opportunity. In fact, McKinsey and the WEF estimate the global space economy – including launch, satellites, navigation, and space-enabled services – will reach ~$1.8 trillion by 2035. 

If you’re hoping to get invested in this space-centered future, there are several compelling sectors to watch.

How the Space Economy Is Transforming National Defense

Let’s start with the national security angle first.

Governments are waking up to the uncomfortable fact that space is the new strategic battleground.

Satellites can now provide real-time battlefield intelligence, secure military communications, early warning missile detection, navigation and targeting systems, and surveillance on rival (and even friendly) nations

Just look to Ukraine – its military would likely have been wiped off the map without Starlink – or China, which now considers satellite dominance a national priority. 

Even the Pentagon has created a $30-plus billion annual budget line called the U.S. Space Force.

This is a long-term arms race – one that favors nimble, responsive space companies with launch capacity, satellite imaging capabilities, and hardware manufacturing.

Who benefits here? The usual suspects. 

• BlackSky, which provides real-time Earth intelligence for military and defense
• Planet Labs, operator of the largest constellation of Earth observation satellites
• Rocket Lab, launch provider for government payloads, hypersonic testing
• Palantir (PLTR), which offers analytics for satellite data

The bottom line? We estimate national defense TAM in space is about $30- to $40 billion today. But as intelligence demand and geopolitical tensions escalate, it could easily double over the next decade.

And it’s just one vertical of the multi-faceted Space Economy…

Space-Based Internet Will Revolutionize Communications

Another big vertical here is space-based communications because the entire communications industry is being rewritten from orbit.

The world is moving toward a space-powered internet: a global, always-accessible broadband network delivered from thousands of small satellites in low Earth orbit (LEO).

This isn’t a theoretical future. It’s already in action:

• Starlink has launched over 6,000 satellites and serves millions of users worldwide.
• Amazon’s Project Kuiper is gearing up to launch a 3,000-plus satellite constellation to support AWS and global internet.
• AST SpaceMobile is going one step further, building the first cell tower in the sky that connects directly to your smartphone without dishes or terminals.

That’s a major step up, especially considering that 2.6 billion people worldwide still lack reliable internet access, and billions more suffer from poor mobile coverage.

Not to mention, we still don’t have cell coverage on airplanes. And natural disasters like earthquakes, fires, and tsunamis often knock out cell coverage when we need it most. 

That’s why we think the total addressable market here is huge. We see it climbing toward $150 billion by 2035 – possibly much more if these constellations become the backbone for rural broadband, global telecom, and even cloud connectivity.

Who benefits?

• ASTS – offers direct satellite-to-phone coverage in partnership with AT&T, Vodafone, and Telefonica
• RKLB – launching communications satellites for multiple players
• PL & BKSY – may support telecom mapping, planning, and routing
• SpaceX – But it’s private… for now. Platforms like Robinhood (HOOD) and SoFi (SOFI) are launching new funds to allow retail clients to invest in private firms like this one. 

Between national defense and communications, we’re already staring at a $50- to $65 billion market in space today.

And it’s still very early days.