Forget Archer Aviation: The Smartest Investors Are Piling Into This Game-Changing Satellite Stock | The Motley Fool

It's been an up-and-down year for speculative growth stocks. Flying taxi maker Archer Aviation ( ACHR 0.12%) plans to launch in the United Arab Emirates (UAE) as soon as next year, which would bring its electric vertical takeoff and landing ( eVTOL ) vehicles to paying customers for the first time. Archer Aviation stock surged, reaching over $14 per share, but has since fallen 41%. While Archer declines, one space company continues its ascent: AST SpaceMobile ( ASTS 8.89%). Up 284% year to date, AST SpaceMobile is trading higher after securing major deals with leading communications companies and making progress in launching its satellites. If you're a growth-focused investor deciding between Archer Aviation and AST SpaceMobile, here's what you need to know. Image source: Getty Images. Archer Aviation has a long path to commercialization Archer Aviation is developing innovative technology that could transform urban transportation. The company is developing eVTOL aircraft, which use electric propulsion and vertical takeoff, are quiet enough for city transportation, and maintain a low emissions profile. This technology is exciting, but it faces significant hurdles. In the near future, Archer plans to launch commercial operations in the UAE. The company hopes to obtain the necessary certifications to begin operations there by the second half of next year. NYSE: ACHR Key Data Points Then there is the issue of certification in the United States. Archer still needs to obtain type certification from the Federal Aviation Administration (FAA). This certification is required for new aircraft designs and covers all required components and parts. This is a four-part process, and Archer is currently in the fourth and final phase of testing and analysis to ensure it meets the necessary requirements. Once it has certification, the next step is to begin commercial operations and scale up. It's one thing to build a prototype and get it tested and certified. It's another to ramp up production so that you can operate at scale, where supply chains , quality control, and unit economics are untested. Not only that, but Archer faces heightened competition from Joby Aviation and others, like Boeing , which is developing and working toward certification for its Wisk Aero aircraft. Archer Aviation 's flying taxis are exciting and could change transportation as we know it. But the idea remains untested at scale, and there is a question about how quickly customers will accept the technology. Right now, Archer is burning cash, and its investment thesis will take several years to play out. Unless you're a more aggressive investor with a long-term horizon (a decade or more), it may not be for you. AST SpaceMobile has scored two huge deals AST SpaceMobile is a satellite company that aims to enable satellite-based cellphone communication without specialized software. The company's BlueBird satellites feature large communication arrays designed to provide high-speed connectivity directly to standard, unmodified smartphones. What makes AST compelling is the large deals it has secured with major communications companies over the past year. Last year, it secured an agreement with...

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