Space Stock Face-Off: Is AST SpaceMobile or Planet Labs Worth Your Money Right Now?

With SpaceX set to go public soon and countries investing heavily in space as a national security priority, the space industry is reaching an inflection point. According to McKinsey estimates, the space economy could grow to $1.8 trillion by 2035.

Beyond SpaceX, two pure-play space stocks investors are watching are AST SpaceMobile (NASDAQ: ASTS) and Planet Labs (NYSE: PL). Both companies operate in different verticals of the space economy and are appealing stocks for investors looking to capitalize on this growth, but one stands out as a better buy today.

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Both operate satellite technology -- but for different purposes

AST SpaceMobile is building a cellular broadband network accessible by standard, unmodified smartphones, using its massive array of satellites as terrestrial space towers. It partners with Mobile Network Operators, including AT&T, Verizon Communications, and Vodafone, and shares revenue with the carriers that offer space-based add-on plans for subscribers. On top of that, the company generates revenue through government contracts for tactical communications.

With over 200 satellites, Planet Labs operates the world's largest fleet of Earth-imaging satellites, capturing high-resolution imagery of the planet every day. The company serves customers in the government sector, including defense and intelligence, the agricultural sector for crop health monitoring, and organizations involved in disaster response. Its daily imaging creates a historical archive of the Earth, which it plans to enhance with analytics and artificial intelligence.

Here's what is next for AST SpaceMobile and Planet Labs

Both companies are in the early stages of commercialization. AST SpaceMobile is deploying its BlueBird satellites and has launched six to date, with a seventh scheduled for launch in April. The company has an aggressive 2026 goal to launch between 45 and 60 satellites into orbit, required to provide continuous commercial service in its initial target markets in the U.S., Japan, and Europe.

It is still in its capital-intensive buildout phase. In February, AST raised $3.9 billion, including $1 billion in convertible senior notes and direct stock offerings. This gives it liquidity to launch its satellites, but it dilutes shareholders in the process. Also in February, it was awarded a $30 million prime contract by the U.S. Space Development Agency for the HALO Europa program to provide direct-to-device tactical satellite communications.

Planet Labs has hundreds of satellites in orbit and is a little further along in generating revenue and scaling up its business. It is more mature, generating revenue of $308 million last year compared with AST's $71 million, and is closer to profitability. In March, the company announced a collaboration with Nvidia to build a GPU-native AI engine, shifting it from a simple image provider to a real-time planetary intelligence platform.

Which space stock is a buy right now?

AST SpaceMobile has its work cut out for it to get its satellites into orbit and deliver continuous coverage. Getting there will require about $1.2 billion in capital, which the company has secured, but it needs to get its launch cadence up to reach its end-of-year goal.

On the other hand, Planet Labs is further along, with hundreds of active satellites, and is expanding its platform to leverage AI for deeper insights. For these reasons, Planet Labs is a better buy today.

Courtney Carlsen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Planet Labs PBC. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.