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 Redwire Corporation (NYSE:RDW) stands against the 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 close-up of an antenna, its intricate designs a testament to the company’s expertise in space infrastructure.
Redwire Corporation (NYSE:RDW)
Latest Valuation/Funding Estimate: $1.57 billion market capitalization
Number of Hedge Fund Holders: 7
Redwire Corporation (NYSE:RDW) is a leading provider of advanced space infrastructure and services, specializing in satellite technologies that support the growing demand for space-based data, communications, and exploration. The company is strategically positioned at the intersection of space innovation and commercial satellite deployment, with a specific focus on providing solutions for VLEO missions. RDW’s portfolio includes satellite components, in-orbit services, and propulsion systems, all of which are vital to the success of VLEO constellations that require frequent orbit adjustments, real-time data transfer, and efficient energy management.
Redwire Corporation (NYSE:RDW)’s offerings in the VLEO space are particularly relevant to industries that rely on high-performance satellites for Earth observation, communications, and scientific research. The company’s state-of-the-art propulsion systems and space-based manufacturing capabilities allow satellites to operate more effectively and efficiently in the unique environment of VLEO. As VLEO constellations proliferate to provide critical infrastructure for global broadband, disaster recovery, and geospatial intelligence, RDW’s expertise in advanced satellite technology ensures that these constellations will be able to maintain their orbits and optimize data throughput with minimal operational costs.
For investors, Redwire Corporation (NYSE:RDW) presents a compelling opportunity due to its strong focus on space infrastructure development and its expanding role in the VLEO satellite ecosystem. The company is well-positioned to benefit from the increasing demand for in-orbit services and infrastructure that support low-latency, high-resolution satellite constellations. RDW’s potential is further enhanced by the announcement of the Edge Autonomy acquisition – during a recent M&A call, management commented that the transaction will transform RDW into a multi-domain space and defense tech company, significantly expanding their total addressable market and supporting organic growth opportunities.
Overall, RDW ranks 4th on our list of the VLEO technology stocks and startups to watch in 2025. While we acknowledge the potential of RDW 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 RDW 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.
