1 Space Stock That's Expected to Grow at a Significantly Faster Rate Than SpaceX Over the Next Few Years
2026-07-20 16:36
•David Jagielski, Cpa •The Motley Fool
•• • Axe Capital view
A Space Play Too Hot to Touch for JSE Investors
AST SpaceMobile’s sky-high growth forecasts come with valuations that make South African investors think twice.
AST SpaceMobile promises a spectacular growth rate—over 240% annually through 2028, far outpacing SpaceX. But that kind of growth is already priced in with a price-to-sales ratio near 190, which is absurdly rich. For local investors used to the more grounded valuations of JSE giants like MTN or Naspers, AST’s volatility and speculative nature stand out as red flags. The rand’s fluctuations against the dollar (USD/ZAR) add another layer of risk, magnifying any adverse moves. Until this story proves it can generate stable cash flow, it’s best viewed as too risky for most South African portfolios. Instead, keeping an eye on telecom plays like MTN, which is more integrated into the continent’s infrastructure and offers steady returns, is smarter. Of course, if satellite internet becomes mainstream faster than expected, the narrative could shift sharply. this is just my opinion and not financial advice
Avoid AST SpaceMobile for now due to its extreme valuation and volatility; focus instead on MTN for exposure to telecom infrastructure growth with less risk.
- AST SpaceMobile (ASTS)
- MTN
- USD/ZAR
- AST’s speculative valuation may collapse if growth disappoints
- Rand volatility could amplify losses for USD-denominated gains
6/10
AST SpaceMobile is expected to grow at a significantly faster rate than SpaceX over the next few years, with analysts projecting a 246% CAGR through 2028 compared to SpaceX's 69% CAGR. However, both stocks trade at rich valuations with AST SpaceMobile at a P/S multiple of 190 versus SpaceX's 80. Both stocks are highly volatile and speculative, with significant downside risk despite promising growth prospects.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: David Jagielski, Cpa
Categories: Equities, Earnings
Tickers: ASTS
Sentiment: Neutral - While AST SpaceMobile shows impressive projected growth (246% CAGR through 2028), the article cautions that it trades at an extremely high valuation (P/S of 190) and has experienced significant volatility and recent declines. The stock is presented as speculative with substantial downside risk despite growth potential.
Keywords: space stocks, growth rate, revenue projections, valuation, satellite internet, volatility, investment risk
Insights:
- ASTS: Neutral: While AST SpaceMobile shows impressive projected growth (246% CAGR through 2028), the article cautions that it trades at an extremely high valuation (P/S of 190) and has experienced significant volatility and recent declines. The stock is presented as speculative with substantial downside risk despite growth potential.