A 65% Drop, Record Orders, and a Bet on Space and Drones
Some stocks aren't investments in the classic sense, but rather a ticket into a story that's still being written. This company is exactly that kind of case. It operates in two of the most exciting markets today—space infrastructure and defense technologies—and its revenue is growing at a rocket pace. At the same time, however, it's losing money, burning cash, and its stock moves like a roller coaster, plunging sharply in recent weeks.
Key points
The stock fell 65% in just a few weeks from a high around $24, even though its revenue is growing at a pace of over 57% a year.
It’s sitting on a record contracted backlog of $498 million, and for every dollar of revenue, it’s adding new orders worth $1.92.
Its satellite solar panels dominate about 60% of their market and power even the International Space Station.
Last year, it bought a combat drone manufacturer for a billion dollars, transforming from a purely space company into a defense player as well.
The company isn't yet profitable, burning around $51 million in cash annually, and its share count swelled from 66 million to 199 million in two years.
It's exactly this combination that makes it one of the most polarizing names on the market. On one side, enthusiasts see a future winner in the space and defense gold rush—a company with unique technology and a record order volume, whose recent plunge is supposedly the best entry opportunity. On the other, skeptics label it an overvalued company that sells dreams and finances itself by constantly printing new shares at the expense of existing shareholders.
Who's right isn't yet known, and that's what makes this story so fascinating. This is a company undergoing its most fundamental transformation: last year, it swallowed a combat drone manufacturer and morphed from a pure space company into a dual bet on both space and defense. This transformation brought it massive revenue growth but also billion-dollar accounting items, deep losses, and a flood of new shares.
So, the question for investors isn't whether the company operates in attractive markets. It's whether it can turn its exciting story into a sustainable, profitable business before running out of breath, and whether today's beaten-down price represents an opportunity or a warning.
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