We recently published a list of 10 VLEO Technology Stocks and Startups to Watch in 2025. In this article, we are going to take a look at where Gilat Satellite Networks Ltd (NASDAQ:GILT) stands against other VLEO technology stocks and startups to watch in 2025.
Very Low Earth Orbit (VLEO) refers to altitudes below 450 km, much lower than traditional low Earth orbit (LEO), which typically includes altitudes between 500 km and 2,000 km. This emerging sector in the space industry offers numerous advantages, including lower latency for communications, higher-resolution imaging capabilities, and reduced launch costs. However, operating in VLEO also presents challenges such as increased atmospheric drag, requiring innovative propulsion and station-keeping technologies. VLEO technology is gaining traction as companies seek more efficient ways to deliver high-speed broadband, enhance Earth observation capabilities, and support national security initiatives. The increasing demand for global connectivity, precise geospatial intelligence, and real-time satellite-based data services is driving investments in VLEO solutions. Governments, defense agencies, and commercial enterprises alike are exploring VLEO applications for sectors such as telecommunications, agriculture, disaster response, and environmental monitoring.
From an investment perspective, VLEO-related stocks and startups offer exposure to one of the fastest-growing segments of the aerospace industry. Companies involved in VLEO range from established aerospace giants developing cutting-edge satellite technology to emerging startups focused on specialized propulsion, high-resolution imaging, and space-based communication networks. The rise of private-sector space initiatives, alongside increased government contracts, provides a strong growth outlook for businesses operating in this niche – for reference, external research boutiques such as Juniper Research estimated that investments into VLEO will reach $220 billion by 2027, from only $17 billion in 2024, implying an annualized growth rate of 135%.
Investors interested in space technology stocks should consider VLEO companies for several reasons. First, the commercialization of space is accelerating, with increasing private-sector involvement from leading firms. Second, VLEO satellites can provide more cost-effective alternatives to traditional LEO and geostationary orbit systems, creating opportunities for companies offering facilitatory or complementary technology in this space. Finally, the sector benefits from strong long-term tailwinds, including advancements in artificial intelligence, cloud computing, and 5G networks, which require faster and more efficient space-based infrastructure. With this, we will take a look at some of the best VLEO stocks to invest in.
Our Methodology
We shortlisted 10 names, which include both publicly traded companies as well as private companies and startups. We ranked the names by market capitalization or the amount of funding raised as we believe the company’s size correlates with the potential to gain a substantial market share by either facilitating or complementing the rapid growth of the VLEO technology market. For publicly traded companies we also include the number of hedge funds that own it.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A broadband satellite hovering in the sky, highlighting the company’s satellite-based broadband communication solutions.
Gilat Satellite Networks Ltd (NASDAQ:GILT)
Latest Valuation/Funding Estimate: $386.58 million market capitalization
Number of Hedge Fund Holders: 13
Gilat Satellite Networks Ltd (NASDAQ:GILT) is a global leader in satellite-based broadband communications, specializing in ground segment technology that supports high-speed connectivity across multiple industries. The company is at the forefront of enabling VLEO satellite networks, providing advanced ground infrastructure solutions that optimize data transmission from these low-altitude satellites. One of GILT’s key strengths is its expertise in satellite backhaul solutions for mobility, defense, and enterprise applications. VLEO satellites require sophisticated ground segment technology to manage the rapid movement and continuous handoff between satellites – GILT’s advanced modems, gateways, and cloud-based network management solutions ensure seamless, high-speed connectivity for users relying on VLEO satellite constellations. The company has already partnered with major satellite operators and defense organizations, demonstrating its ability to support next-generation space-based networks. As demand for low-latency, high-capacity satellite communications continues to grow, Gilat Satellite Networks Ltd (NASDAQ:GILT) is well-positioned to capitalize on the expanding VLEO market.
From an investment perspective, Gilat Satellite Networks Ltd (NASDAQ:GILT) represents an attractive opportunity in the growing satellite communications industry. The company benefits from a strong presence in emerging markets, government contracts, and long-term agreements with leading satellite operators. Additionally, as commercial and defense sectors increasingly adopt VLEO networks for real-time data applications, the company’s ground infrastructure solutions will become even more critical. With its technological expertise, expanding market reach, and strategic positioning in the VLEO ecosystem, GILT offers investors a compelling opportunity to gain exposure to the future of satellite communications. The Israeli-based company ranked 9th on a recent list of 10 Best Value Penny Stocks to Invest Now.
Overall, GILT ranks 6th on our list of VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of GILT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GILT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
