"A complete waste of space is York Space Systems"

According to Terry Tanaka, York Space Systems is a play on a booming industry , but it appears doomed and is ridiculously overvalued

Space is a booming industry. Both the private sector and military users have shown a great deal of interest in the sector due to the declining cost of satellites and launches, and Elon Musk's SpaceX is about to launch. However, not every business will thrive, just like in any boom, and this is especially true if its primary business is a rival of SpaceX. York Space Systems (NYSE: YSS), which went public at the end of January 2026, serves as one example.

York Space Systems currently generates revenue through the sale of satellites. The issue is that the Space Development Agency (SDA), a division of the US Space Force (the space branch of the US Armed Forces), provides it with almost all of its revenue.

These satellites were part of the SDA's Transport Layer program, which aimed to create a massive network of 300500 low Earth orbit satellites (7501,200 km above the earth) for communications and targeting.

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York Space Systems consistently experiences losses.

But as Wolfpack Research has noted, the US Space Force recently made the decision to stop funding the most recent phase of the rollout, effectively ending the program. The Space Data Network (SDN), a slightly different arrangement, will be pursued instead. York Space Systems may be able to provide the satellites needed for the Space Data Network. This won't be simple, though, as it will need to persuade the Pentagon that it can produce satellites more effectively and affordably than SpaceX, the SDN's current preferred supplier.

York's position remains uncertain even if it is successful in selling its satellites to the SDN. It consistently loses money and makes very little headway toward breaking even, let alone turning a profit. Between 2023 and 2025, operating losses rose by fifty percent. The group has begun purchasing other space-related businesses, which is indicative of its desperation and will probably further deplete its cash reserves. To raise money, it might even begin issuing more shares. Despite all of this, the stock is still trading at nearly eight times sales, which is the kind of valuation you would anticipate from a business that was both profitable and rapidly expandingnot one that was in danger of losing its largest client.

York's stock has been volatile, declining nearly instantly after it floated and then rising to a point where it was trading 25% above its listing price. The share price, however, has collapsed over the last few weeks; it is now trading well below both its 200-day and 50-day moving averages and has dropped by almost half from its recent highs. Therefore, at the current price of £24.02 at 100 per £1, I would advise you to go short. If it rises above £33.52, you should cover your position because there is a potential downside of 950.