Media coverage of space often focuses on billionaires such as Elon Musk, Jeff Bezos or Richard Branson and their private space companies. But the number of publicly-traded space-industry stocks is growing quickly. Some companies have been in the market for decades, and a new wave of companies is going public this year, mostly through special purpose acquisition company (Spac) transactions.
Space is an inescapable part of life, whether you check the weather forecast or watch a film using satellite television. The underlying index for the Procure Space UCITS ETF in Europe (LSE: YODA) and the US (Nasdaq: UFO) reflects the diversity of the space industry. These stocks, all in the YODA ETF, showcase the way we will communicate, navigate, and travel in future.
Extraterrestrial internet connectivity
Globalstar’s (NYSE: GSAT) shares jumped by 60% in a day in August following rumours that Apple would announce direct-to-satellite connectivity for the iPhone 13 in partnership with the satellite-communications provider.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Globalstar promptly returned to more typical levels after there was no mention of this feature at Apple’s launch event two weeks later. But the saga attracted investors’ attention to related space stocks such as AST SpaceMobile (Nasdaq: ASTS), a company seeking to create the first space-based 4G/5G cellular broadband network for mobile phones.
A young company that began publicly trading in April 2021, ASTS has partnered with mobile-network providers including Vodafone so that customers can switch between ground towers and satellites as needed. As the data economy grows and consumers demand ever-present high-speed connectivity regardless of location, there are clear opportunities for space systems to improve internet access worldwide.
Navigating the space market
Countless products and services are now aware of their location in some capacity, thanks to space. America’s GPS satellites and Europe’s Galileo satellites, along with other systems, have changed the way individuals and businesses navigate the world by providing a signal that is freely available for device manufacturers to use.
Garmin (Nasdaq: GRMN) is a longstanding player in this sector, with products that include GPS-enabled smartwatches and other consumer wearables, navigation systems for automobiles, and specialised equipment for maritime and aviation customers. Garmin looks poised to benefit as services become more networked and location-orientated.
To the moon and back
Virgin Galactic (NYSE: SPCE) receives much media attention, but it is still worth a look. The company has milestones to meet before it begins regular passenger flights, but it remains the only publicly traded company working to carry people to space on a commercial basis. Its strategic partnership with Boeing provides exciting opportunities for the long term. These could include rapid transit between locations on earth via space, in addition to quick tourist flights.
Investors and spaceflight passengers alike will need strong stomachs – the stock tends to make sharp turns as the company makes progress or experiences temporary setbacks. It is rocket science (and engineering), after all.
-
'Investors should back the AI maximalists'Polar Capital is bullish on AI and believe that the sector is far from being a bubble
-
UK REITs – is real estate poised for a rebound?Investors are still cautious about UK REITs. Private equity is snapping them up. One view must be wrong, says Cris Sholto Heaton
-
'Investors should back the AI maximalists'
Polar Capital is bullish on AI and believe that the sector is far from being a bubble
-
Waiting for a UK REITs rally – is real estate poised for a rebound?
Investors are still cautious about UK REITs. Private equity is snapping them up. One view must be wrong, says Cris Sholto Heaton
-
'It’s time to close the British steel industry'Opinion The price tag on British steel is just too high. It's time for Labour to make a grown-up decision and close down the industry, says Matthew Lynn
-
Last orders: can UK pubs be saved?Pubs in Britain are closing at the rate of one a day, continuing and accelerating a long-term downward trend. Why? And can anything be done to save them?
-
Global investors have overlooked some of China’s best growth stocksOpinion Dale Nicholls, portfolio manager, Fidelity China Special Situations, highlights three Chinese businesses where he’d put his money
-
How Next defied the odds and positioned itself as a British high-street stapleNext rose from a near-death experience and now thrives as a high-street staple. What's driving its success – and should you invest in the retailer?
-
Alok Sama on AI and how to invest in the future of technologyInterview Alok Sama, the former president and chief financial officer of Masayoshi Son’s investment vehicle SoftBank Group International, explains AI’s potential
-
The private equity puzzleListed private equity trusts still trade at large discounts, despite sales that validate their valuations
