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Forget Redwire Stock: This Space Stock Is a Better Moonshot Bet
The Motley Fool· 2025-12-28 01:11
Core Viewpoint - The article suggests that investors should avoid Redwire Corporation due to its significant decline in stock value and instead consider more successful companies in the space sector, such as AST SpaceMobile, which has shown substantial growth this year [1][8]. Company Performance - Redwire Corporation's shares have fallen over 48% year-to-date, contrasting sharply with the S&P 500's increase of around 17% [1][2]. - The company has faced investor disappointment due to two consecutive earnings misses, share dilution, and delays in government contracts, leading to cautious sentiment regarding its future prospects [4][6]. - Despite a recent partial rebound following a contract agreement with The Exploration Company, Redwire's long-term recovery remains uncertain without significant growth and profitability improvements [5][7]. Comparison with AST SpaceMobile - AST SpaceMobile has experienced a remarkable increase in its stock price, rising over fourfold from the low $20s to the low $80s per share year-to-date [8][9]. - The company is expected to see a sales increase of 342.6% in 2026, with long-term earnings forecasts predicting EPS of $0.35 in 2027 and $2.57 in 2028 [12]. - AST SpaceMobile's growth is supported by commercial agreements with major telecom companies, which bolsters investor confidence in its long-term prospects [11]. Market Data - Redwire's market capitalization stands at $1.2 billion, with a gross margin of 3.85% [6]. - In contrast, AST SpaceMobile has a market cap of $20 billion, although it currently has a negative gross margin of -38675.73% [9][10]. Investment Outlook - The article indicates that while both Redwire and AST SpaceMobile carry high levels of risk as early-stage companies, AST SpaceMobile is viewed as the stronger investment choice at present due to its growth trajectory and market position [13][15].