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.
-
Premium Bonds winners announced – did you scoop the September jackpot?NS&I has announced the winners for September’s Premium Bonds prize draw, with two lucky savers becoming overnight millionaires. Did you win this month?
-
What is the 25x retirement rule and does it work?The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
Are wealthy whisky enthusiasts leaving Britain?Collectables Wealthy whisky enthusiasts are heading to tax-friendly countries such as Dubai, where there is more disposable income to spend on collectable luxuries like rare whisky.
-
'The rise and fall of Kodak is a lesson for the tech giants'Opinion The long decline of Kodak – a once-dominant company – shows why no business is safe from disruption, says Matthew Lynn
-
8 of the best properties for sale with kitchen gardensThe best properties for sale with kitchen gardens – from a 17th-century timber-framed hall house in Norfolk, to an Arts & Crafts house in West Sussex designed by Charles Voysey with a garden by Gertrude Jekyll
-
Why investors can no longer trust traditional statistical indicatorsOpinion The statistical indicators and data investors have relied on for decades are no longer fit for purpose. It's time to move on, says Helen Thomas
-
Investors rediscover the virtue of value investing over growthGrowth investing, betting on rapidly expanding companies, has proved successful since 2008. But now the other main investment style seems to be coming back into fashion.
-
8 of the best properties for sale with shooting estatesThe best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
The most likely outcome of the AI boom is a big fallOpinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
What we can learn from Britain’s "Dashing Dozen" stocksStocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
