Stock market participants will continue to price in the post-earnings data provided by companies reporting results. Most notably, in the rocket ship segment, Rocket Labs (RKLB) might continue its big move.
RKLB gained 79% YTD as of last week. In the first quarter, the company lost $0.07 (in GAAP EPS). Revenue grew by 63.4% Y/Y to $200.3 million. Although the revenue is small compared to its over $70 billion market capitalization, investors like its record backlog. That jumped to $2 billion, where the firm counts on government contracts for national security, civil space, and commercial programs.
AST SpaceMobile (ASTS) might end its downtrend that sent the stock to a YTD low below $70. The firm is targeting a launch of around 45 BlueBird satellites in orbit by the end of this year.
ASTS stock is not without risk. According to Chief Legal Officer Andrew Johnson, its milestones for commercial activation depend on the timing of customer activities.
The BNPL (buy now, pay later) market will thrive as inflation squeezes consumers. Investors may consider Affirm (AFRM), whose stock bottomed in the low $40s to trade recently in the mid $60s. Similarly, Sezzle (SEZL), whose shares have a 15% short interest, bottomed at around $60 to trade at around $100.
Affirm’s delinquencies stabilized in the quarter. It reduced credit spreads despite seeing more deals offering oversubscriptions.
