Beyond Earth: Find space for space in your investing portfolio
Space.. the final frontier
As a kid, did you ever imagine that you might grow your own wealth by investing in rocket ships, satellites, and space tourism? It’s kind of nuts when you think about it.
But investment banking firm, Morgan Stanley, have been quite vocal with their opinion that the space industry could be worth $1 trillion by 2040.
That doesn’t exactly seem hard to believe, either. With explorative rockets launching from all corners of the globe, and with eyes still very much on Mars missions and Moon bases, the space race is still on.
At the end of 2022, NASA awarded $57 million to a Texas company focused on Moon-based construction.
What’s happening in space?
While much of the hype around space travel comes thanks to billionaires like Richard Branson and Jeff Bezos, taking off in their own rockets and suborbital spaceplanes, the industry has its foundations in communications technology.
Then there are companies like Weathernews, the world’s largest private weather information provider. Also, Garmin, whose GPS technology has helped explorers find their way for almost 35 years.
These companies form part of the foundation that makes the space industry so valuable. But what about those other big names?
Fly with Virgin Galactic
Richard Branson’s Virgin brand is known across the world, with Virgin Atlantic flying over 1.1 million passengers in 2021 (although this is down significantly from 6 million in 2019).
Virgin Galactic, which is available under the ticker SPCE after its merger with a Special Purpose Acquisition Company, aims to take wealthy tourists to the edge of space in its suborbital spaceplanes.
The company is several years behind schedule, though, and it’s not clear when ticket-holders will take to the skies.
The power of Lockheed Martin
We wanted to mention Lockheed Martin in this article because while the American manufacturer is primarily focused on Earth-based technology, space accounts for around 15% of their business.
Lockheed Martin, which built the C-141 Starlifter and the F-117 Nighthawk, as well as missiles capable of travelling more than five times the speed of sound, has deals with Boeing, NASA, and the US Government, making it a powerful addition to any portfolio.
Investing in the space industry
The space industry may seem remote and unfamiliar, but competition for space in space, is nearly as fierce as competition for space on the ground.
It’s hard to imagine the space industry shrinking any time soon, and when the valuation predictions point north of a trillion dollars, the cosmos certainly seems worthy of some exploring.
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