Podcast Summary: Motley Fool Money

Episode: Quantum Computing… In Space!
Date: November 11, 2025
Host: Emily Flippen
Guests: Jason Hall & Keith Beitz

Episode Overview

This episode explores two of the hottest investing themes: quantum computing and space technology. Motley Fool analysts Jason Hall and Keith Beitz dissect earnings from three innovative companies—CoreWeave (AI data infrastructure), Rigetti Computing (quantum computing), and two space-connected firms: Rocket Lab and AST Space Mobile. The discussion centers around financial results, growth prospects, challenges, and where investors might reasonably look to put their money amid these speculative trends.

Key Discussion Points & Insights

1. CoreWeave: AI Infrastructure in the Spotlight

[00:52 – 06:13]

• CoreWeave's Business Model & Hype:
  • Not a pure quantum computing or space company, but a hypergrowth provider of GPU-based data center services for AI workloads, often lumped into these sectors because of high-profile partnerships (notably Nvidia).
  • "Shares are down nearly 15% today, despite...booming top line." (Emily, [00:54])
• Financial Dynamics & Risks:
  • Revenue doubling YoY; management guides to $5B FY revenue but spending $13B on CapEx and $1.25B in interest—raising questions about cash burn and long-term returns.
  • Jason highlights:
    “It’s far less clear how much of that growth is going to flow through to investors…this isn’t a software company, right? It’s an infrastructure business with a technology overlay.” ([02:46])
    • CoreWeave’s competitive advantage ("moat") is questionable in the long run due to commodification risk.
    • Execution risk remains, as CoreWeave depends on third-party contractors and power availability to deliver on growth.
  • Notable Quote:
    • “Moats are ephemeral, if existent at all in technology.” (Jason, [04:40])
• Investor Takeaway:
  • Tremendous growth, but valuation remains very rich and execution risks (e.g., construction delays, rising costs) loom large.

2. Quantum Computing: Hope, Hype, and Pragmatism

[05:46 – 08:37]

• Rigetti Computing's Struggles:
  • Revenue is minuscule compared to CoreWeave ($1.9M in Q3 vs CoreWeave’s $1.9B in CapEx alone), and revenue declined 18% YoY, underlining the sector's early-stage status.
  • Keith notes:
    “Up and coming often means not there yet. And that’s the case with Rigetti…” ([06:13])
• Sector-wide Observation:
  • Quantum computing sector is in its infancy, similar to semiconductors in the 1940s.
  • Big-tech players (Alphabet/Google, IBM, Nvidia, Microsoft) viewed as safer avenues for exposure.
• Notable Quote:
  • “The least risky way to invest in quantum computing...is to buy shares of one of those tech giants that have major quantum computing initiatives going on.” (Keith, [07:59])
• Investor Takeaway:
  • For risk-averse investors, big tech firms with quantum ambitions might be a better option than trying to pick early-stage winners.

3. Rocket Lab: Space as a Growing, Not Flashy, Sector

[10:13 – 13:28]

• Rocket Lab’s Niche Success:
  • Unlike space tourism plays (e.g., Virgin Galactic), Rocket Lab focuses on launching satellites and payloads, a strategy that’s paying off.
  • Record Q3 revenue of $155M (up 48% YoY), improving gross margin (37%), though still unprofitable.
  • "One niche within an industry can be successful while other parts...struggle." (Keith, [11:02])
• Backlog and Government Impact:
  • Strong backlog (49 launches under contract), with a third signed just last quarter—highlighting sector momentum despite challenges (like government shutdown delays).
• Tech Development:
  • Expanding beyond small launches to the Neutron reusable medium-lift platform, aiming for competition with SpaceX.
  • “They just opened up their test site for Neutron...still on track to deliver and launch the first Neutron early next year.” (Jason, [13:09])
• Investor Takeaway:
  • Satellite launch is a growth industry, especially with robust government and commercial demand—and Rocket Lab is a clear non-tourism leader.

4. AST Space Mobile: Space-Enabled Communication, Not Just Launches

[14:43 – 18:14]

• Unique Business Model:
  • AST isn’t about launching rockets, but building a satellite-based cellular network—partnering with mobile network operators (MNOs) globally.
  • “They just want to get cell signals into space and back...address a real pain point that cell providers are dealing with.” (Jason, [17:16])
• Commercial Momentum:
  • Q3 revenue (~$15M) is modest but the firm boasts $1B in contracted commitments.
  • Landmark Verizon deal, plus partnerships with AT&T, Telefonica, Vodafone, Rakuten, Saudi Telecom, and more.
  • “In total, AST has over 50 mobile network partners with a combined subscriber base of almost 3 billion.” (Keith, [17:16])
• Execution & Growth Path:
  • Plan to deploy 45-60 satellites by end of 2026, with $3B liquidity to fund the ramp—but operating expenses remain high ($100M last quarter).
  • 2026 set as a "make or break" year given ambitious growth targets and high cash burn.
• Notable Quote:
  • “I really think there might be a there there, even with 2026...potentially being a make or break year.” (Emily, [18:14])
• Investor Takeaway:
  • AST is transitioning from concept to commercialization; high risk, but vast TAM and commercial traction make it intriguing.

Notable Quotes & Memorable Moments

• Jason Hall:
  • "Moats are ephemeral, if existent at all in technology." ([04:40])
  • "This isn’t a software company...It’s an infrastructure business with a technology overlay." ([02:46])
• Keith Beitz:
  • “The least risky way to invest in quantum computing...is to buy shares of one of those tech giants that have major quantum computing initiatives going on.” ([07:59])
  • "One niche within an industry can be successful while other parts of the industry struggle." ([11:02])
• Emily Flippen:
  • “I perhaps bought Virgin Galactic when it went public and I’m still sitting on 99% losses...” ([10:13])
  • “I really think there might be a there there, even with 2026...potentially being a make or break year.” ([18:14])

Segment Timestamps

• [00:54] — CoreWeave's Q3 Results, Market Sentiment, and Moat Discussion
• [04:40] — Debate: Is CoreWeave's Competitive Advantage Durable?
• [05:46] — Rigetti & State of Quantum Computing Sector
• [07:59] — Safer Strategies for Quantum Exposure (Big Tech)
• [10:13] — Rocket Lab: Satellite Launches vs. Space Tourism
• [12:26] — Government Shutdown Impact, Future Prospects for Rocket Lab
• [13:28] — New Medium-lift Platform: Neutron and Next Steps
• [14:43] — AST Space Mobile: Satellite Cellular Networks Explained
• [16:32] — Global Partnerships & Revenue Ramp Potential for AST
• [18:14] — Outlook: Risks and Opportunities in Space Mobile

Final Thoughts & Investment Wisdom

• High growth and long-term opportunity distinguish these sectors but so do risks: high cash burn, uncertain moats, and execution hurdles abound.
• "Pick your spots," is the implicit message, whether it’s owning diversified big tech to capture quantum, or focusing on companies with tangible contracts and a path to profitability in space.
• Cautionary Reminder:
  • “Don’t buy or sell stocks based solely on what you hear.” (Emily, [18:38])
  • Motley Fool may have recommendations; always do your own research.

This episode is a timely guide for investors attempting to separate hype from substance in two of the market’s boldest frontiers: quantum computing and the commercial space race.