The satellite industry has a problem: getting into space is becoming a competitive advantage. As companies race to build global communications networks, relying on outside rocket providers can mean expensive launches, scheduling delays, and limited control.
A newly announced $1.3 billion rocket agreement reveals how far companies are willing to go to secure their place in orbit.
Private Jet Signal (Sponsored)
On one night this February, 600 private jets flew out of a single California city.
Why 600 jets in one night?
The same night Elon Musk spent millions to send a message to 125 million Americans.
Most people have no idea the two are connected.
How are the two connected?
But Wall Street veteran Whitney Tilson says they are, and that what happened that night is the most important financial signal he's seen in years.
He's sharing his full analysis free, here
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Theme: Satellite Communications, Reusable Rockets, Launch Infrastructure, and Direct-to-Device Connectivity
The Next Space Race Is About Control
Satellite broadband is moving beyond specialized terminals and emergency communications toward connecting ordinary smartphones directly to satellites.
That opportunity requires enormous infrastructure investment.
Companies need satellites, licensed spectrum, ground stations, reliable launch providers, and enough capital to maintain their networks.
But one of the biggest challenges is getting satellites into orbit quickly and affordably.
On November 6, AST SpaceMobile announced plans to build its own reusable rocket, Blacklift, designed to transport up to five BlueBird communications satellites per launch.
The company also signed an agreement worth more than $1.3 billion with Firefly Aerospace to supply rocket engines, engineering services, and propulsion technology licenses.
It's an ambitious move for a satellite communications company.
Rather than relying entirely on established launch providers like SpaceX, AST wants greater control over the infrastructure needed to expand its network.
And it isn't alone.
What's Driving It
A $1.3 Billion Bet on Launch Independence
AST SpaceMobile plans to begin launching Blacklift in late 2028.
The rocket is designed to carry approximately 20 metric tons into low Earth orbit, placing it in the same broad launch-capacity category as SpaceX's Falcon 9.
Firefly will initially supply 36 engines, including 27 Miranda engines and nine Vira upper-stage engines.
The agreement also grants AST a license to manufacture those engines at a future U.S. facility.
Importantly, the $1.3 billion commitment includes intellectual property licensing and engineering services, not just engine purchases.
AST already has external launch agreements covering more than 100 BlueBird satellites expected to deploy during 2027 and 2028.
Blacklift is therefore a longer-term strategy to control costs and launch schedules, not an immediate replacement for commercial providers.
The company plans to unveil additional rocket details Thursday, November 12.
The Industry Is Consolidating
Rocket Lab is pursuing a similar strategy from the opposite direction.
In June, it announced an approximately $8 billion agreement to acquire Iridium Communications, combining its rocket and satellite manufacturing operations with an established global satellite network.
Rocket Lab reported record second-quarter revenue of $234 million and a backlog of $2.36 billion.
Meanwhile, Amazon agreed in April to acquire Globalstar, gaining satellite infrastructure, valuable spectrum licenses, and direct-to-device technology.
These transactions suggest companies increasingly want control over multiple stages of the satellite business, from manufacturing and launching equipment to delivering connectivity.
The Chain Reaction
Satellite communications demand grows → operators deploy larger constellations → launch capacity becomes more valuable → companies invest in proprietary rockets and acquisitions → vertically integrated platforms gain greater control over costs and deployment schedules
The risk is that building this infrastructure consumes enormous capital before commercial demand justifies the investment.
What's Working
Rocket Technology Is Attracting Capital
Firefly's second-quarter revenue reached a record $117.7 million, up 659% year over year.
The AST agreement provides additional funding to expand engine production, testing facilities, and engineering capacity.
Firefly was also selected November 7 as an eligible vendor under NASA's $10 billion lunar delivery contracting program, although that does not guarantee any specific contract award.
Connectivity Is Becoming More Valuable
Iridium reported third-quarter revenue of $245.7 million, up 8%, supported by growing satellite service demand.
Globalstar generated $70.9 million in quarterly revenue while advancing its next-generation constellation.
The industry is attracting buyers because established satellite networks, licensed spectrum, and paying customers are difficult to replicate.
What to Watch
AST and Rocket Lab report Monday, while Firefly follows Tuesday.
Watch launch schedules, capital spending, satellite deployment progress, engine development, and backlog conversion.
Thursday's Blacklift unveiling should provide additional details about AST's rocket development strategy.
The strongest signal would be expanding commercial demand accompanied by greater launch reliability and manageable capital requirements.
AST SpaceMobile (ASTS)
What it does: Develops a satellite-based cellular broadband network designed to connect ordinary smartphones directly from space.
Why it fits: Its Blacklift program represents a major attempt to control satellite launch costs and deployment schedules.
What stands out: The company committed more than $1.3 billion to Firefly's propulsion technology and plans a reusable rocket capable of carrying five BlueBird satellites per launch.
The Takeaway: Buy this if you want an ambitious satellite connectivity growth play with substantial long-term potential.
The risk is expensive rocket development, delays, and future financing requirements.
Firefly Aerospace (FLY)
What it does: Develops rocket engines, launch vehicles, spacecraft, and lunar landing systems.
Why it fits: Its propulsion technology is becoming an important component of the expanding commercial launch market.
What stands out: The new AST agreement covers 36 engines, engineering support, and intellectual property licensing.
The Takeaway: Buy this if you want direct exposure to rocket manufacturing and the growing demand for launch technology.
The risk is production delays and the difficulty of developing reliable propulsion systems.
Real Cash Flow (Sponsored)
Layoffs and belt-tightening usually register in share prices well ahead of the evening news.
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Rocket Lab (RKLB)
What it does: Provides orbital launch services, satellite manufacturing, spacecraft components, and space infrastructure.
Why it fits: Its planned Iridium acquisition would create a more vertically integrated satellite communications business.
What stands out: Q2 revenue increased 62% to $234 million, while backlog reached $2.36 billion.
The Takeaway: Buy this if you want broad exposure to launch services and satellite infrastructure through an expanding space company.
The risk is delays to its Neutron rocket and acquisition integration challenges.
Iridium Communications (IRDM)
What it does: Operates a global satellite network providing communications, tracking, aviation, and industrial connectivity.
Why it fits: Its existing network and recurring service revenue offer established infrastructure that newer satellite operators are still building.
What stands out: Q3 revenue increased 8% to $245.7 million, while Rocket Lab's pending acquisition values the business at approximately $8 billion.
The Takeaway: Buy this if you want merger-driven exposure to Rocket Lab, recognizing that returns now depend heavily on the transaction terms.
The risk is deal delays, regulatory obstacles, and changes in Rocket Lab's share value.
Single Metal Supplier (Sponsored)
Washington now treats America's reliance on foreign metal suppliers as a national security problem.
Much of that supply is processed in China.
Who holds the supply?
High-heat alloys for rockets.
Rare earth magnets for satellites.
Lithium, nickel and graphite for batteries.
Motors and magnets for robots.
Get the report and ticker
One small company holds that supply, still around $5 a share, and it is no household name.
I want this company's name
*This ad is sent on behalf of Guardian Financial Publishing LLC, doing business as Stable Financial Publishing, 1013 Centre Road Suite 403-D, Wilmington, DE 19805. Nothing here is investment, financial, legal, or tax advice, and it is not a recommendation or solicitation to buy or sell any security. Investing involves substantial risk, including loss of principal; small-cap and low-priced stocks carry particular risk, including the possible loss of your entire investment. Past performance does not guarantee future results. Stable Financial Publishing, its owners, employees and contributors may hold positions in securities mentioned and may trade them at any time. References to Elon Musk and SpaceX are for informational purposes only; Stable Financial Publishing is not affiliated with, endorsed by, or sponsored by Elon Musk or SpaceX. Privacy: https://guardian.pub/privacy-policy/ · Terms: https://guardian.pub/terms-of-service/
What month and year did ChatGPT launch?
Globalstar (GSAT)
What it does: Operates satellite communications networks and owns spectrum supporting direct-to-device connectivity.
Why it fits: Its pending acquisition by Amazon demonstrates the strategic value of established satellite assets.
What stands out: Amazon's agreement offers shareholders cash or Amazon shares, subject to proration, with closing expected in 2027.
The Takeaway: Buy this only if you want a merger-driven opportunity rather than unrestricted exposure to satellite-industry growth.
Risks include transaction delays, remaining closing conditions, and changes in the stock consideration.
Owning the Infrastructure Changes Everything
The commercial space industry is evolving beyond launching individual satellites.
AST wants its own rockets, Firefly supplies propulsion technology, Rocket Lab is acquiring an established network, and Amazon is expanding through Globalstar.
These moves reveal where the industry is heading.
The next space winners may be the companies that control the entire journey, from manufacturing satellites to connecting customers on Earth.
Best Regards,
— Adam Garcia
Elite Trade Club
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