Over the past few years, many speculative tech companies went public by merging with special purpose acquisition companies (SPACs). Some of those stocks initially soared, but a lot of them fizzled out after they broadly missed their pre-merger projections. Rising interest rates also drove many investors to dump those riskier stocks.
But now that interest rates are set to decline over the next few quarters, it might be time to revisit some of those SPAC-backed companies. I believe three of those volatile stocks -- AST SpaceMobile (ASTS 5.30%), Intuitive Machines (LUNR 0.25%), and QuantumScape (QS +1.13%) -- could go parabolic as the macro environment warms up again.
Image source: Getty Images.
1. AST SpaceMobile
AST SpaceMobile develops low-Earth orbit (LEO) satellites for lower-band cellular connections. It launched its first BlueWalker 3 prototype satellite in 2022, and it's getting ready to launch its first five Block 1 BlueBird (BB1) commercial satellites on Sept. 12. AT&T and Verizon Communications both signed LEO cellular agreements with AST this May ahead of that launch, which would represent the company's first major step toward generating meaningful revenues.
NASDAQ: ASTS
Key Data Points
AST's stock has rallied about 570% over the past 12 months in anticipation of its BB1 launch, but it could head even higher if it successfully expands its LEO satellite networks to cover more rural and underserved areas over the next few years.
If that happens, analysts expect AST's revenue to surge at a compound annual growth rate (CAGR) of 684%, from $6.4 million in 2024 to $393.2 million in 2026. With an enterprise value of $4.1 billion, AST's stock might already seem pricey at 10 times its projected sales for 2026. But according to Grand View Research, the global LEO satellite market could still expand at a CAGR of 14% from 2024 to 2030.
If AST merely matches that growth rate, it could generate $870 million in revenue by 2030 -- so it could still have plenty of room to grow as more telcos expand their space-based cellular networks.
2. Intuitive Machines
Another speculative space stock is Intuitive Machines, a developer of lunar landers and exploration vehicles. It generates most of its revenue from NASA contracts, and its NOVA-C lunar lander finally landed on the Moon this past February after several years of delays. That marked America's first successful Moon landing since 1972.
NASDAQ: LUNR
Key Data Points
Intuitive Machines won a new lunar terrain vehicle (LTV) contract from NASA this past April. It plans to bid on more contracts while expanding its commercial "ridesharing" business, which delivers other third-party payloads to the Moon. It only generated $79.5 million in revenue in 2024, but analysts expect that figure to grow at a CAGR of 81% to $474.6 million in 2026 as it scales up its business. They also expect it to narrow its net losses and squeeze out a slim profit by the final year.
We should take those estimates with a grain of salt. But with an enterprise value of $317 million, the stock looks cheap at less than one times next year's sales. If NASA ramps up its spending on new lunar missions again, Intuitive Machines' sales could skyrocket and its valuations should rise. Its future still looks murky, but it could attract a lot more attention over the next few years.
3. QuantumScape
QuantumScape develops solid-state batteries that generate power from solid electrolytes, instead of the liquid electrolytes used in lithium-ion batteries. Solid-state batteries can store more energy, charge faster, resist higher temperatures, and last longer than their lithium-ion counterparts -- but they're also more expensive and harder to produce.
NASDAQ: QS
Key Data Points
QuantumScape is trying to overcome those challenges by scaling up its business. It hasn't commercialized any of its products yet, but its newest batteries can reportedly grant electric vehicles (EVs) a range of 400 to 500 miles, with a charging time of less than 15 minutes. Most EVs currently have a range of about 300 miles, with an average charging time of 30 minutes.
The company's business model might seem shaky, but it's firmly backed by Volkswagen. Volkswagen has already worked with QuantumScape for more than a decade, and it's already run several road tests with its batteries.
QuantumScape won't generate any revenue this year, but analysts expect that figure to rise to $5.4 million in 2025 and $19.1 million in 2026 as it commercializes its first batteries.
With an enterprise value of $1.97 billion, QuantumScape might seem overvalued at more than 100 times its 2026 sales. Yet it could still expand rapidly once solid-state batteries replace lithium-ion batteries -- and it could be a tempting takeover target for Volkswagen or another major automaker.
