One Space Stock Delivers Revenue Growth Despite Delays While Its Rival Disappoints Investors Entirely

By David Beren Published Feb 17, 10:25PM EST

Quick Read

Rocket Lab (RKLB) and AST SpaceMobile (ASTS) both dropped 28% but differ drastically in operational maturity.
Rocket Lab delivers $554M annual revenue and won an $816M defense contract. A Neutron tank rupture delayed the rocket’s debut.
AST SpaceMobile trades at 1,655x P/S with $18.5M in revenue. It missed Q3 targets and raised $1B via convertible notes.

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One Space Stock Delivers Revenue Growth Despite Delays While Its Rival Disappoints Investors Entirely — © 24/7 Wall Street

Rocket Lab (NASDAQ: RKLB | RKLB Price Prediction) and AST SpaceMobile (NASDAQ: ASTS) both shed between 26 and 27% over the past month, but the reasons behind each selloff tell very different stories about execution versus expectations.

An infographic titled 'THE 28% SLIDE' with the subtitle 'TWO PATHS. ONE DROP.' It contrasts Rocket Lab (RKLB) and AST SpaceMobile (ASTS), both showing a -28% stock drop in a month. The Rocket Lab section, with a rocket icon, details 80th & 81st successful launches in January, an $816M defense contract, and a $1 billion backlog, but notes a Neutron rocket debut delay due to a January 21 tank rupture. The AST SpaceMobile section, with a satellite icon, highlights a Q3 2025 revenue miss ($14.7M vs $20.3M Est), a $94.4M operating loss, and $1 billion convertible notes offering. A table titled 'THE FUNDAMENTAL DIVIDE' compares metrics for RKLB and ASTS: TTM Revenue ($554.5M vs $18.5M), P/S Ratio (65x vs 1,655x), and Market Cap ($3.80B vs $30.7B). The 'THE TAKEAWAY' section labels RKLB as a 'PROVEN FOUNDATION' with $554M annual revenue and 31.7% gross margins, and ASTS as a 'HIGH-RISK BET' with burning cash, a 1,655x P/S Ratio, and massive upside variance. The infographic sources data as of February 17, 2025. — This infographic compares Rocket Lab (RKLB) and AST SpaceMobile (ASTS), both of which experienced a 28% stock drop, highlighting their contrasting operational strengths and challenges as of February 17, 2025.

Rocket Lab Delivers, Then Stumbles on Neutron

Rocket Lab’s operational track record remains flawless. The company launched its 80th and 81st Electron missions in January, demonstrating reliability that wins contracts. That momentum translated into an $816 million contract from the U.S. Space Development Agency for 18 satellites, expected to add $200 million in annual revenue over four years. The company’s $1 billion backlog grew 56% year over year in launch services alone.

The problem? Neutron. On January 21, Rocket Lab revealed that its Neutron rocket’s Stage 1 tank ruptured during hydrostatic pressure testing. Neutron represents the company’s bid to compete in SpaceX’s medium-lift market, and the failure has pushed back the rocket’s debut to the first half of 2026. Shares dropped more than 4% in after-hours trading and continued to slide as investors reassessed the timeline.

Meanwhile, Rocket Lab’s core business continues to perform well, as indicated by Q3 2025 revenue hitting $155 million, up 48% year-over-year, with 37% gross margins. The company guided Q4 revenue to $170 to $180 million, with CEO Peter Beck calling the momentum strong, and the numbers back that up. Electron remains the most frequently launched small orbital rocket after SpaceX.

Rocket Lab’s Stronger Execution Path

On the plus side, Rocket Lab has something AST doesn’t: a proven revenue engine. Electron’s launch cadence and the defense backlog provide visibility into near-term cash flows. The Neutron setback stings, but it doesn’t undermine the core business. Rocket Lab generates $554 million in annual revenue with a 31.7% gross margin. This is very much a foundation that can be built on well into the future.

Competitors like AST SpaceMobile are still burning cash to prove their satellite-to-cell concept works at scale. The 1,655x price-to-sales ratio leaves zero room for execution missteps. Rocket Lab demonstrates stronger execution fundamentals with proven revenue and a business model already delivering results despite the Neutron delay.

About the Author David Beren →

David Beren has been a Flywheel Publishing contributor since 2022. Writing for 24/7 Wall St. since 2023, David loves to write about topics of all shapes and sizes. As a technology expert, David focuses heavily on consumer electronics brands, automobiles, and general technology. He has previously written for LifeWire, formerly About.com. As a part-time freelance writer, David’s “day job” has been working on and leading social media for multiple Fortune 100 brands. David loves the flexibility of this field and its ability to reach customers exactly where they like to spend their time. Additionally, David previously published his own blog, TmoNews.com, which reached 3 million readers in its first year. In addition to freelance and social media work, David loves to spend time with his family and children and relive the glory days of video game consoles by playing any retro game console he can get his hands on.