NextNav (NN) is Seeking Regulatory Play for its 5G Spectrum

Laughing Water Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, Class A interests in Laughing Water Capital returned approximately 13.1% net of all expenses. The SP500TR and R2000 returned 10.9% and 8.5%, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second quarter 2025 investor letter, Laughing Water Capital highlighted stocks such as NextNav Inc. (NASDAQ:NN). NextNav Inc. (NASDAQ:NN) provides next-generation positioning, navigation, and timing (PNT) solutions.  The one-month return of NextNav Inc. (NASDAQ:NN) was 2.25%, and its shares gained 88.51% of their value over the last 52 weeks. On July 23, 2025, NextNav Inc. (NASDAQ:NN) stock closed at $15.42 per share, with a market capitalization of $2.042 billion.

Laughing Water Capital stated the following regarding NextNav Inc. (NASDAQ:NN) in its second quarter 2025 investor letter:

“NextNav Inc. (NASDAQ:NN) – NextNav, which is our next-gen GPS and spectrum company, continues to march the ball forward in their quest to have the FCC greenlight their spectrum for 5G use. I continue to believe that the odds of NextNav succeeding are very favorable. This belief comes from the obvious, such as reading FCC filings where NextNav is specifically named, but also from more and more articles highlighting the vulnerabilities of the existing GPS system and the National Security needs of the United States. Additionally, it is hard to interpret the official FCC Twitter/X account re-tweeting articles written by NextNav’s CEO as a bad sign, and perhaps most important is reading the tea leaves and digging up the scuttlebutt surrounding the various personalities involved behind the scenes.

None of this stuff goes in the spreadsheet, but all of it suggests that a Notice of Proposed Rule Making (NPRM) that supports FCC Chairman Brendan Carr’s stated goals of freeing up spectrum and focusing on National Security and First Responders will be forthcoming. Carr is clearly passionate about these goals, but he lacks the budget to independently see them through. NextNav is the only solution that tackles these problems with no cost to taxpayers.

Assuming an NPRM, I suspect that NextNav will find a way to monetize their spectrum in some sort of partnership or transaction with one of the mobile network operators at prices significantly higher than where shares trade today. Comparable transactions have taken place at a wide range of prices, and anything from $35-$60 per share is within the reasonable realm of possibility, although history has shown that crazy things can happen in spectrum land.”

Is NextNav Inc. (NN) the Best Small-Cap Growth Stock to Buy Now?

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NextNav Inc. (NASDAQ:NN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held NextNav Inc. (NASDAQ:NN) at the end of the first quarter, which was 23 in the previous quarter. NextNav Inc.’s (NASDAQ:NN) first quarter revenue increased to $1.5 million from $1 million in Q1 2024. While we acknowledge the risk and potential of NextNav Inc. (NASDAQ:NN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NextNav Inc. (NASDAQ:NN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.