Why Intuitive Machines Popped, but Rocket Lab and AST SpaceMobile Stocks Dropped Today

Volatility ran amok among space stocks Tuesday. Shares of lunar explorer Intuitive Machines (NASDAQ: LUNR) rocketed 35.6% through 3 p.m. ET, but rocket maker Rocket Lab (NASDAQ: RKLB) and satcom specialist AST SpaceMobile (NASDAQ: ASTS) declined -- down 6.2% and 12.3%, respectively.

AST's decline comes after the FCC permitted Globalstar (NYSE: GSAT) to operate 17 new cellphone-to-cellphone satellites that could compete with AST. The FCC also extended Globalstar's operating license through 2039.

Rocket Lab and AST: Ready for liftoff

Momentum traders flocked to Rocket Lab and AST SpaceMobile in August, anticipating high-profile space missions launching soon. Rocket Lab stock is up an astounding 40% since Aug. 1 after delivering twin "EscaPADE spacecraft" to Cape Canaveral for a mission to Mars .

AST SpaceMobile stock's up almost as much -- 30% since Aug. 1 -- after delivering five satellites to the Cape for launch in September. Success should move the company closer to offering cellphone-to-cellphone communications via satellite across the United States, and eventually, the world. Competition from Globalstar, however, could limit AST's growth prospects.

Intuitive Machines: To the moon with rovers

Farther out, Intuitive Machines will launch its IM-2 mission to the moon late in 2024, or early in 2025. SpaceNews reports Intuitive may also bid on a NASA contract to replace Astrobotic Technology on its "VIPER" (Volatiles Investigating Polar Exploration Rover) mission to put a rover on the moon to search for ice near the south pole.

There's reportedly $84 million remaining under VIPER's $433.5 million budget -- twice what Intuitive Machines booked in all of Q2, giving Intuitive Machines strong incentive to bid for the work.

Should you buy space stocks?

Here's what you really need to know about these three space stocks. They're growth stocks, yes, with strong prospects and even stronger sales growth. They're also momentum stocks, valued more on headlines than on profits. The Fly reports "unusually active" options trading in at least two of the three over the last couple of days.

But S&P Global Market Intelligence says Intuitive Machines won't turn profitable before 2026, and Rocket Lab and AST -- not until 2027. Caveat investor.

Before you buy stock in AST SpaceMobile, consider this: