Sky’s the Limit: Investing in the Hottest Stocks Fueling the Space Race

by Fred Fuld III

4 minute read time

The field of space exploration has seen remarkable advances in recent years, driven by a combination of technological innovation, private investment, and renewed interest from governments around the world. From reusable rockets to the development of space-based communication networks, the industry is rapidly evolving, opening up new possibilities for scientific discovery, commercial ventures, and even human settlement beyond Earth.

The rise in space exploration activities has also sparked interest in space-related stocks, offering investors a chance to participate in what many consider the next frontier of human achievement. In this article, we’ll examine some top space exploration stocks—AST SpaceMobile (ASTS), Momentus (MNTS), Rocket Lab USA (RKLB), and Virgin Galactic Holdings (SPCE)—each playing a unique role in the burgeoning space economy.

AST SpaceMobile (ASTS)

AST SpaceMobile, headquartered in Midland, Texas, is at the forefront of developing space-based communication networks. The company’s mission is to build the first space-based cellular broadband network, capable of connecting directly to standard mobile phones without the need for ground-based infrastructure. This groundbreaking technology has the potential to bring high-speed internet access to remote and underserved areas across the globe.

The stock has a $4.7 billion market cap, but generating negative earnings, and falling revenues.

AST SpaceMobile’s BlueWalker 3 test satellite, launched in 2022, represents a significant milestone in the company’s journey to revolutionize global communications. As demand for ubiquitous connectivity continues to grow, AST SpaceMobile is positioned to play a crucial role in expanding internet access worldwide.

Momentus (MNTS)

Momentus, headquartered in San Jose, California, is a space infrastructure company focused on providing in-space transportation and logistics services. The company’s Vigoride spacecraft is designed to transport satellites to their intended orbits after being deployed from a launch vehicle, as well as perform other in-space operations such as satellite repositioning and deorbiting.

Although quarterly revenue growth year-over-year is 752%, the company isn’t generating earnings at this time. However, annual sales growth is up an incredible 933%. The stock has an extremely low market cap of $10 million, and should be considered very speculative.

Momentus aims to address the growing need for flexible and cost-effective space transportation solutions as more small satellites and constellations are launched into orbit. With its innovative technology and strategic partnerships, Momentus is well-positioned to capitalize on the increasing demand for in-space logistics in the new space economy.

Rocket Lab USA (RKLB)

Rocket Lab USA, based in Long Beach, California, is a leader in small satellite launch services, providing reliable and cost-effective access to space for a wide range of customers, including commercial companies, government agencies, and research institutions. The company’s Electron rocket is designed specifically for launching small payloads into low Earth orbit (LEO), and it has successfully completed numerous missions since its first launch in 2017.

Although quarterly revenue growth year-over-year is 71%, the company isn’t generating earnings at this time. The stock has a market cap of $3.26 billion.

Rocket Lab’s advancements in reusable rocket technology and its development of the larger Neutron rocket, which is set to debut in the coming years, demonstrate its commitment to pushing the boundaries of space transportation. Rocket Lab’s ability to deliver rapid and responsive launch services has made it a key player in the growing small satellite market.

Virgin Galactic Holdings (SPCE)

Virgin Galactic Holdings, based in Las Cruces, New Mexico, is a pioneer in the emerging space tourism industry. Founded by Sir Richard Branson, Virgin Galactic aims to make space travel accessible to the public through suborbital flights that offer passengers a few minutes of weightlessness and a breathtaking view of Earth from space. The company’s SpaceShipTwo vehicle has already conducted several successful test flights, and commercial operations are expected to commence in the near future.

The stock is selling for 40% of book value and just 23% of cash. Sales growth year-over year was in excess of 175% and more than 125% quarter-over-quarter. However, the company currently isn’t generating earnings and has a high amount of debt. It has a very low market cap of $186 million.

While space tourism is still in its early stages, Virgin Galactic’s innovative approach and strong brand recognition position it as a leader in this exciting new market. As demand for space experiences grows, Virgin Galactic is poised to play a major role in shaping the future of commercial space travel.

Summary

The companies highlighted in this article—AST SpaceMobile, Momentus, Rocket Lab USA, and Virgin Galactic Holdings—represent some of the most innovative and promising players in the space exploration industry. Each company is uniquely positioned to capitalize on the growing interest in space, whether through propulsion technology, space-based communications, satellite services, in-space logistics, launch capabilities, or space tourism.

These top space stocks offer investors an opportunity to participate in the next great leap forward in human achievement. As advancements in technology continue to drive progress in space exploration, these companies are well-positioned to benefit from the expanding space economy.

Disclosure: Author didn’t own any of the above at the time the article was written.

Top Space Exploration Stocks

by Fred Fuld III

According to Morgan Stanley, “Global space could be a $1 trillion industry by 2040.” .

Have you ever thought about traveling to the moon or Mars? You now have that opportunity.

For example, Elon Musk’s SpaceX is selling tickets to travel around the Earth. Richard Branson’s Virgin Galactic (SPCE) plans to to provide suborbital spaceflights to space tourists.. Jeff Bezos, founder of Amazon (AMZN) has created Blue Origin for space tourists.

If you are looking for individual stocks, here are several you might want to consider:

•Virgin Galactic Holdings (SPCE)

•Maxar Technologies (MAXR)

•Aerojet Rocketdyne (AJRD)

•Rocket Lab USA (RKLB)

•Momentus (MNTS)

•Virgin Galactic Holdings (SPCE) is developing commercial spacecraft to provide suborbital spaceflights to space tourists. It was originally a SPAC stock.

Last year, Virgin Galactic announced that it opens ticket sales to the public, with the price of a reservation at $450,000.

The company is currently negative earnings, although long term annual growth estimate for earnings over the next five years is 19.4%.

Maxar Technologies (MAXR) designs and manufactures satellites and spacecraft components, especially those used in high-resolution satellite imagery.

The stock has a forward price to earnings ratio of 32, with an earnings per share growth this year of 183%, and an EPS growth next year of 379%.

A better alternative might be to allocate your funds to one of the space ETFs.

The exchange traded fund Direxion Moonshot Innovators ETF (MOON), which is up 23.91% so far this year. It has an expense ratio of 0.65 and pays a yield of 2.43%.

Procure Space ETF (UFO), founded in 2019, has increased by 6.39% this year. The expense ratio is 0.75, and the yield is 2.94%.

SPDR Kensho Final Frontiers ETF (ROKT) has been around since 2018. It is up 8.48% so far this year, but it also pays a yield of 0.5%. It has an expense ratio of o.45.

The youngest space ETF on the block is ARK Space Exploration & Innovation ETF (ARKX), which went public recently. The fund is up 14.17 year-to-date, and th expense ratio is 0.7%.

Hopefully, one of these stocks or ETFs will take your portfolio to the moon.

Disclosure: Author owns AMZN.

The Best Way to Invest in Space

by Fred Fuld III

In previous articles, we’ve alerted you to the sale of Elvis Presley‘s childhood house, Steve Job’s autograph on a floppy disk, and a 712 acre Bahamas island.

How would you like to own Buzz Aldrin’s FLOWN Inflight Coverall Jacket, which he wore on his mission to the Moon and back during Apollo 11?

Well you can. You also have the opportunity to buy many other space items.

Sotheby’s is having their auction on July 26, 2022 at 12 noon EDT in New York.

Buzz Aldrin’s Jacket – Credit: Sotheby’s

The featured item is Buzz Aldrin’s jacket. The current bid is $700,000, with an estimated sales price of $1,000,000 to $2,000,000.

Other interesting items up for sale in the Buzz Aldrin: American Icon Auction include Buzz Aldrin’s Lifetime Passes to the National and American Leagues of Major League Baseball which has a current bid of $1300, and the United States flag that was flown to the moon on Apollo 11 currently bid at $17,000,.

One other totally unique item is the broken circuit breaker switch that nearly ended the lives of the Apollo 11 Crew, and the pen that saved them, now bid at $700,000.

There are a total of 69 different lot to choose from in this auction.

What a way to bring space home with you.

How to Invest in Space Exploration

by Fred Fuld III

If you have ever thought about traveling to the moon or to Mars or even just to the Earth’s atmosphere over 50 miles, that opportunity may be on the horizon.

Elon Musk’s SpaceX is selling tickets to travel around the Earth. For only $1,000, you can put a deposit down on a space flight with Virgin Galactic (SPCE). Jeff Bezos, founder of Amazon (AMZN) has created Blue Origin, which is attracting space tourists.

However, if you are looking to invest in the space industry, there are many stocks to choose from but a better alternative may be to invest in one of the space ETFs.

The exchange traded fund Direxion Moonshot Innovators ETF (MOON), which is up 19.85% so far this year. It has an expense ratio of 0.65. It was established in November of last year.

Procure Space ETF (UFO), founded in 2019, has increased by 18.99% this year. The expense ratio os 0.75.

SPDR Kensho Final Frontiers ETF (ROKT) has been around since 2018. It is up 5.27% so far this year, but it also pays a yield of 0.47%. It has an expense ratio of o.45.

The youngest space ETF on the block is ARK Space Exploration & Innovation ETF (ARKX), which went public a couple days ago.

If you are looking for individual stocks, Virgin Galactic Holdings, Inc. (SPCE) and Maxar Technologies Inc. (MAXR) are a couple companies that appear in at least two of the space ETFs.

Hopefully, one of these ETFs will take your portfolio to th moon.

Disclosure: Author owns AMZN.

How to Invest in Space Travel

by Fred Fuld III

Last month, I published an article called UFO Stocks. The report covered many of the companies that are involved in the satellite and space industry, such as Maxar Technologies (MAXR),  Viasat (VSAT), and EchoStar (SATS). I also mentioned the Procure Space ETF (UFO) which is a diversified way to play the space industry.

However, there is a new way to invest in space travel. How would you like to invest in Richard Branson’s Virgin Galactic? This is the company that will allow anyone (even you) to flying space, assuming you are willing to pay the fee of $200,000 to $250,000. The company already has a waiting list of 600 people.

The way to invest in Virgin Galactic is through a company called Social Capital Hedosophia (IPOA), which trades on the New York Stock Exchange. Social Capital Hedosophia will be involved in a merger and end up owning 49% of Galactic.

It will be interesting to see if this stock gets as high as the aircraft that will be sent into space.

Disclosure: Author owns IPOA.

UFO Stocks

by Fred Fuld III

Do you believe UFOs really exist? If so, would you like to invest in the UFO industry? Unfortunately, you can’t just yet but you can invest in the next best thing, space travel.

The business of traveling to outer space may be the next big long term industry for investors. But you may be asking, what are the best stocks to play this investment theme?

Unfortunately, a few of these companies are privately held, but there are some, many of which are small corporations, which are close to space pure plays.

One of these companies is Maxar Technologies (MAXR) which has three divisions, space systems, imagery, and services. The space systems division provides satellites, satellite payloads, and antennas.  This Colorado based company has been around since 1969. The stock trades at 42 times forward earnings by recent earnings have been negative. It has a very favorable price to sales ratio of 0.21, and sells at 76% of book value. This $442 million market capitalization company even pays a dividend, with a yield of 0.54%.

Another space related company with a much larger market cap of $5.3 billion, is Viasat (VSAT), which designs and develops satellites along with many types of communication services. The company, which has generated negative earnings, trades at more than two and a half times sales and book value. It does not pay a dividend.

The Englewood, Colorado company EchoStar (SATS) owns and leases in-orbit satellites. The stock has a forward price to earnings ratio of 28 and trades at 98% of book value.

There are several other companies that might fit into the space category such as IntelSat (I), Trimble (TRMB), and Iridium (IRDM). However, a better strategy might be to invest in the Procure Space ETF (UFO), which has cornered a great stock ticker symbol.

This ETF owns all of the above stocks plus a couple dozen more that have ties to the space industry. UFO just started trading this year.

Disclosure: Author didn’t own any of the above at the time the article was written.