space tourism companies stocks

7 Space Stocks and ETFs to Watch

Investors looking to participate in the growth of the "final frontier" can buy these stocks and ETFs for exposure.

Photo by Bill Ingalls | NASA via Getty Images

The space industry's inherent complexities and the rapid pace of technological advancements make stock-picking particularly challenging.

Investing in emerging industries like space tourism often presents a tempting opportunity for those chasing growth. The potential upside can be significant, but the risks are equally high, so the road to success can be tumultuous and prone to disappointment.

An illustrative example is Virgin Galactic Holdings Inc. (ticker: SPCE ), spearheaded by Richard Branson. This company, which ventured into the relatively uncharted territory of space tourism, saw its shares soar to $55 in 2021 after its 2019 initial public offering.

However, the trajectory wasn't maintained, and the shares have since plummeted to $1.49 as of Nov. 1. This dramatic shift underscores the unpredictable nature of betting on single companies in emerging industries that are still in their infancy.

As with any innovative trend, late investors in Virgin Galactic suffered from the risk of the anticipated growth already taking place, or being priced in. "The mistake that many people make with thematic investing is that the price of the stocks may already reflect market expectations," says Jeremy Bohne, founder and financial advisor at Paceline Wealth Management.

While the performance of Virgin Galactic might have been underwhelming, it's worth noting that the space industry is diverse. Companies involved in other areas, such as satellite deployment, space station manufacturing, and even research and exploration, have experienced varying levels of success.

Some have found stable ground and are growing steadily, but pinpointing these success stories ahead of time is no easy task. The industry's inherent complexities and the rapid pace of technological advancements make stock-picking particularly challenging.

For investors keen on tapping into the potential of the space industry but wary of the pitfalls of backing a single company, thematic exchange-traded funds, or ETFs , offer a viable alternative. Thematic ETFs can provide investors with a more diversified basket of stocks in a particular industry or trend.

In the context of the space industry, a thematic ETF would include a mix of stocks from various companies operating in different verticals of the sector. Instead of the investor's fortune being tied to the success or failure of a single company, it's spread across several.

The diversified nature of ETFs means that even if one or two companies within the fund face setbacks, the performance of others can potentially offset those losses. However, these ETFs still come with unique risks to be aware of.

"Thematic ETFs offer easy diversification, convenience and professional management, but often this comes with much higher expense ratios than basic index ETFs, as well as industry-specific risks," says Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors. "The long-term trend of a theme may be in place, but it may be early in the cycle and subject to the ups and downs of fads, so consider limiting exposure to themes that can face flashy headline sensationalism."

Here are seven space-industry stocks and ETFs investors can buy in 2023:

Rocket Lab USA Inc. ( RKLB )

Investing in the space sector doesn't simply mean backing companies that take affluent tourists just beyond Earth's atmosphere. For instance, telecommunications companies depend on satellites to relay signals across vast distances, enabling global communication. Beyond calls and messages, satellite technology supports navigation systems, weather forecasting and even international broadcasting.

RKLB is one of the few companies offering these services, providing propulsion, spacecraft, satellite platforms and launch vehicles. The company is currently contracted with NASA for its Escape and Plasma Acceleration and Dynamics Explorers mission, which will orbit Mars to collect scientific data. RKLB is providing two spacecraft for the mission’s scheduled 2024 launch.

Intuitive Machines Inc. ( LUNR )

Since the last Apollo mission in 1972, the Moon had remained untouched by human astronauts. But that's set to change, as NASA's focus has once again shifted moon-ward with the Artemis II mission. This 10-day mission will be crewed by four astronauts, with the objective of testing new equipment and laying the foundation for a possible long-term lunar presence.

While NASA itself isn't available for public investment, those interested in the renewed lunar exploration can consider LUNR. This company currently manufactures rocket-fueled drones and rovers for lunar exploration, orbital delivery services and data network infrastructure. However, LUNR only has a market capitalization of $63 million, making it a fairly risky micro-cap stock with high volatility .

iShares U.S. Aerospace & Defense ETF ( ITA )

"When selecting a space-themed ETF, try to examine the underlying holdings," Schulman says. "Does the ETF contain the kind of company exposure you desire with riskier, up-and-coming shoot-for-the-stars names, or more stable aerospace and defense firms that have space exploration and satellite divisions?" For balance, consider pairing risky small-caps like RKLB and LUNR with an established ETF like ITA.

This ETF doesn’t have a pure-play space focus. Instead, it holds traditional, large-cap aerospace manufacturers like Boeing Co. ( BA ), Lockheed Martin Corp. ( LMT ) and Howmet Aerospace Inc. ( HWM ) to name a few, with Boeing sitting at around 16.8% of the ETF. Defense contractor RTX Corp. ( RTX ) also has a sizable presence at 18.7%. The ETF charges a 0.4% expense ratio.

Invesco Aerospace & Defense ETF ( PPA )

ITA's benchmark, the Dow Jones U.S. Select Aerospace & Defense Index, has a very top-heavy focus. Its top two holdings, Boeing and RTX, collectively account for around 34% of its overall weight. For a more balanced aerospace and defense ETF, consider PPA, which tracks the SPADE Defense Index with a total of 54 holdings, compared to the 33 held in ITA.

Despite its aerospace and defense focus, PPA still has some palpable exposure to companies with space operations with notable holdings including Boeing, Lockheed Martin, L3Harris Technologies Inc. ( LHX ), Heico Corp. ( HEI ), Kratos Defense & Security Solutions Inc. ( KTOS ), and Viasat Inc. ( VSAT ). However, the ETF is more expensive than ITA, with a 0.58% expense ratio.

SPDR S&P Aerospace & Defense ETF ( XAR )

Many companies with greater space exposure tend to be small-cap stocks due to the up-and-coming nature of the industry. In market-cap-weighted aerospace and defense index ETFs like ITA and XAR, these companies can get drowned out by their large- and mid-cap counterparts, which receive proportionately more exposure as a result. For an alternative, consider XAR.

This ETF tracks the S&P Aerospace & Defense Select Industry Index, which assigns equal weights to large-, mid- and small-cap stocks. Therefore, a small-cap pure-play space stock like Virgin Galactic with a market cap of roughly $613 million would be assigned the same exposure as Boeing, with $116 billion in market cap, when the ETF rebalances periodically. XAR charges a 0.35% expense ratio.

ARK Space Exploration & Innovation ETF ( ARKX )

"There's a big misconception that thematic ETFs have a longtime place in investors' portfolios," Bohne says. "In my opinion, the more narrowly focused they are, the shorter the likely holding period will be, and thus the more closely they'll need to be managed." Bohne says that thematic ETFs may be more suitable as a tactical trading tool rather than a long-term buy-and-hold investment.

A good example is ARKX, which is one of the innovation-themed ETFs from Cathie Wood's Ark Invest. Unlike the previous ETFs, ARKX is actively managed, with Ark Invest's team picking stocks they believe will outperform based on their proprietary research. As an active ETF, ARK is able to buy and sell holdings as it sees fit based on changing outlooks or fundamentals. The ETF charges a 0.75% expense ratio.

Procure Space ETF ( UFO )

Another ETF with pure-play exposure to space stocks that's worth a look is UFO. This aptly named ETF tracks the S-Network Space Index. Investors should take note of how the index defines a company as space-related; industries encompassing rocket and satellite production and operation, ground equipment for satellite systems, space tech and hardware, space imagery, and telecommunications currently qualify.

However, the ETF's index also holds some companies that are earthbound but are crucially dependent on space industries to operate. For example, the index would count a company selling GPS smartwatches as a space-related company. Like ARKX, this ETF is fairly pricey, with a 0.75% expense ratio, and it has only attracted around $34 million in assets.

Biggest Tech Companies in the World

Wayne Duggan Oct. 31, 2023

Tags: investing , stock market , Boeing , Lockheed Martin , Howmet Aerospace , Virgin Galactic Holdings , RTX Corp , L3Harris Technologies , exchange traded funds

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These are the space stocks to keep an eye on in 2024

By James Rogers

"Everyone wants to launch satellite constellations at the moment," says KeyBanc Capital Markets analyst Michael Leshock

From space tourism to rocket launch technologies, these are the space stocks to look out for in 2024.

Justus Parmar, CEO of Fortuna Investments, a venture-capital and advisory company currently focused on space investments, sees Virgin Galactic Holdings Inc. (SPCE) as particularly worthy of attention, pointing to the company's market cap of $1.06 billion and its cash balance of $1.1 billion. "The reality is that the market is not valuing them at all," he said. "This would be interesting to watch in terms of 'does that change over the course of the year?'"

"If they are able to execute via cost cutting, successful launches, new iteration of rocket, they could surprise some folks," Parmar added.

For Virgin Galactic, 2024 is about focusing on its new Delta Class spaceships, KeyBanc Capital Markets analyst Michael Leshock told MarketWatch. "It really could be a gamechanger for the company in terms of shifting from burning to generating cash," he said.

Last month Virgin Galactic fleshed out its near-term growth strategy, laying out the roadmap for the new Delta Class. The spacecraft will begin flight tests in 2025 and enter service in 2026. Unlike the company's current Unity spacecraft, which has four seats for paying passengers, the Delta spacecraft will have six seats, and will be capable of making up to eight spaceflights a month, significantly more than Unity's one spaceflight a month.

Related: Amazon launches test satellites in Project Kuiper space-broadband push

This will increase Virgin Galactic's monthly revenue per spacecraft from the current maximum of $2.4 million to $28.8 million, the company said.

But earlier this month Virgin Galactic's stock fell after founder Sir Richard Branson ruled out further investment in the space-tourism company. This, however, should not be an issue for the company, according to Leshock. "In reality it doesn't change much in terms of the capital that they need to complete their operations," he told MarketWatch.

Nonetheless, he thinks that Virgin Galactic may undertake a capital raise to develop the Delta Class spaceships. "We wouldn't be surprised if there was a $200 million to $500 million capital raise before 2026," he said. "We don't think that it's necessary, but it is possible."

Virgin Galactic's stock has fallen 32.2% in 2023, compared with the S&P 500 index's SPX gain of 22.4%.

Related: Virgin Galactic's stock rises 10%, on pace for biggest daily percentage gain in three weeks

Away from space tourism, companies providing launch capabilities will also be in the spotlight in 2024. Elon Musk's SpaceX, for example, has completed more than 90 launches in 2023. Earlier this week Amazon.com (AMZN) Inc. founder Jeff Bezos' Blue Origin also completed the 24th flight of its New Shepard launch vehicle.

KeyBanc's Leshock sees a supply/demand imbalance in launch capabilities. "Everyone wants to launch satellite constellations at the moment," he said. "With regard to launches, I think it's going to be pretty supply constrained for the foreseeable future."

Underlining the sheer scale of satellite launch demand, Amazon's Project Kuiper aims to build a constellation of 3,236 satellites to increase global broadband access. Project Kuiper has secured 77 heavy-lift launches from Arianespace, Blue Origin, and United Launch Alliance, which is a joint venture between Boeing Co. (BA) and Lockheed Martin Corp. (LMT).

Related: Rocket Lab is 'one of the highest-quality space companies' in the market, analyst says

In October the first two Kuiper satellites were sent into space atop a ULA Atlas V rocket, kicking off a months long series of tests. The FCC requires that 50% of the Project Kuiper constellation must be placed in orbit by July 30, 2026.

Attorney Ellis Brazeal, co-leader of Jones Walker's aerospace and aviation team, also expects an uptick in space activity. "I think there will be more launches, more competition, the tempo of launches will pick up," he told MarketWatch, pointing to SpaceX's plan for 12 launches a month in 2024.

"We're embarking on a low earth orbit satellite space race at the moment," said Andrew Chanin, CEO of Procure AM, issuer of the Procure Space ETF UFO. Advancements in launch technologies will be a key theme in 2024 and beyond, Chanin added. "Whether its new propulsion technologies, more efficient fuels, new rocket designs - these are things that companies are working on today," he told MarketWatch.

Set against this backdrop, Rocket Lab USA Inc. (RKLB) is well positioned to benefit from growing demand for its launch capabilities, according to Parmar of Fortuna Investments. "A lot of folks are happy and comfortable using SpaceX ... but some folks would rather not use SpaceX, and Rocket Lab has emerged as a bona fide launch provider," he said. "They have developed a strong cadence for their launches."

Rocket Lab also acquired bankrupt satellite-launch company Virgin Orbit Holdings Inc.'s 144,000-square-foot aerospace production and manufacturing facility in Long Beach, Calif. earlier this year and is working to meet key milestones for its new Neutron rocket in 2024. These include an engine test and Neutron's first simulated flight orbit with hardware connected to flight computers.

Related: For Virgin Galactic, faster revenue generation is coming - 'just not anytime soon,' says one analyst

The 141-foot-high Neutron rocket is designed for the deployment of "mega constellations" of satellites, deep-space missions and human spaceflight, according to Rocket Lab. The company's stock has risen 17% in 2023. Not all space stocks have fared as well in 2023 - shares of Momentus Inc. (MNTS), which provides satellite transportation and servicing, have fallen 95.7%.

But the space industry front runner remains Elon Musk's SpaceX, according to Parmar. "They have had a banner year, it will be interesting to see if they can keep that momentum into the coming year."

IPO spinoff talk has recently spun around Starlink, the SpaceX-owned satellite internet constellation. But Parmar thinks this is unlikely to happen. "I personally do not think that [Musk] will spin that business out," he told MarketWatch. "If you look at his track record as a CEO and entrepreneur, he's not in the business of spinning things out."

"I think he will IPO the company in the next three or four years, maybe longer, but it will not be a divided company," Parmar added.

Related: United Launch Alliance eyes first Vulcan rocket launch later this year

ULA will also be busy in 2024, according to Jones Walker attorney Brazeal, pointing to the first launch of the company's Vulcan rocket, which is scheduled for January. ULA is also planning to make the first crewed launch of Boeing's Starliner spacecraft next year, as well as launches to support the Kuiper constellation.

As the space industry gears up for a busy 12 months, experts also see plenty of positives coming out of Washington. "The steadfast commitment of the Department of Defence (DoD) to 'buy what we can build and build what we must' we expect to exert a profound influence in 2024," said Mark Boggett, CEO of the Seraphim Space Investment Trust (UK:SSIT). "We anticipate a surge in contract awards reflecting the strategic imperative to harness cutting-edge technologies and innovations from agile and pioneering NewSpace companies with the DoD playing a pivotal."

Jones Walker government relations attorney Brett Richards also highlighted the 2024 National Defense Authorization Act, which establishes a legislative liaison of the Space Force to Congress. "This is small gesture, but one that shows a formal relationship is building with Congress and the Space Force," he told MarketWatch. "Certainly, improving the communication, and all rowing in the same space direction - I think that's going to be a huge thing for next year, and for space policy moving forward."

But even amidst all this space industry growth, Brazeal expects to see more bankruptcies in the sector. "Two space companies, Masten and Virgin Orbit, have filed bankruptcy within the last two years," he said, adding that it's highly likely that we'll see more. "Over the past few years, investment banks and VC firms were pumping money into space startups. Many of these will not survive."

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

12-23-23 1208ET

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News & Insights

5 Stocks to Watch as Space Industry is Set to Skyrocket

February 09, 2021 — 09:54 am EST

Written by Sreoshi Bera for Zacks  ->

The space industry witnessed an exciting trajectory last year despite the pandemic slump. Per a Space Capital report , 2020 turned out to be a record year for the space infrastructure segment specifically, that hauled in $8.9 billion. Space companies have recorded a total of $25.6 billion investment in last year. In the years to come, space exploration and infrastructure projects will yield outstanding returns for investors.

Here’s Why Space Stocks Are Poised to Grow

In the coming years, the space industry will be boosted by news on new constellations of satellites entering low-Earth orbit, satellite-based Internet, space travel and point-to-point transport around the Earth.

Orbital and suborbital aerospace companies that are engaged in the launch, construction, service and operation of satellites or launch vehicles are gaining momentum. Companies like Virgin Galactic Holdings, Inc. SPCE , which focuses on space tourism, hope to ferry customers beyond Earth's atmosphere for $250,000 per seat this year.

Additionally, the companies engaged in creating technologies that provide value addition to aerospace operations, like AI, robotics, 3D printing, materials and energy storage, are growing. Maxar Technologies is one such pure-play space stock that is also poised to grow. This maker of space hardware and provider of satellite-based Earth imaging and data service is constantly working with SpaceX.

Public Listing Boosting the Space

Funding and research are constantly boosting the space. ARK Invest, which has several exchange traded funds (ETFs) in its portfolio, filed with the United States Securities and Exchange Commission (SEC) to launch a space-focused ETF under the ticker ARKX on Jan 14.

Blank check investing is an alternative way to create a publicly-listed company and has been a growing trend of late. Earlier, Social Capital had created a special purpose acquisition company (SPAC) called IPOA, which eventually merged with Virgin Galactic and the company began trading under the ticker symbol SPCE. Hence, investors who had bought IPOA shares before the merger automatically had Virgin Galactic shares. This alternative to initial public offering (IPO) is quite visible in the space industry.

On Feb 2, Astra Space Inc., maker of small rockets, announced plans to go public by merging with Holicity (HOL), a SPAC. Astra Space expects the transaction value at $2.1 billion and hopes to close the deal in the second quarter of this year. The company plans to carry out monthly launches in the latter half of 2021, with the capacity to launch satellites weighing 100 pounds.

Momentus, another pure-play space company that plans to provide "last-mile delivery" in space, also announced last year that it will be going public through its merger with blank check company Stable Road Capital (SRAC). The deal, valued at $1.2 billion, is expected to close early this year. The company has entered into a partnership agreement with Lockheed Martin and NASA.

5 Stocks to Watch Out For

Morgan Stanley estimated that the global space industry will generate revenues of more than $1 trillion by 2040, suggesting a rise from $350 billion in 2020. According to a Research and Markets report , the space industry, valued at $350 billion in 2020, is projected see a CAGR of 5.6% and reach a value of $558 billion by 2026. Given the encouraging estimates, we have shortlisted five space stocks that investors can look out for.

AeroVironment, Inc. AVAV designs and develops unmanned aircraft systems and has been working with NASA to design and develop the first Mars drone -- a helicopter. The company’s expected earnings growth rate for the current year is 1.6% against the Zacks Aerospace - Defense Equipment industry’s projected earnings decline of 12.3%.

The Zacks Consensus Estimate for the company’s next-quarter earnings has been revised 37.7% upward over the past 60 days. AeroVironment flaunts a Zacks Rank #1 (Strong Buy). You can see  the complete list of today’s Zacks #1 Rank stocks here .

Leidos Holdings, Inc. LDOS offers commercial low earth orbit and cislunar spaceflight services, including payload design, mission integration, and human factors engineering. It has processed, packaged and shipped International Space Station cargo for 87 visiting vehicles that includes SpaceX and Orbital ATK. The company that belongs to the Zacks Aerospace - Defense industry has an expected earnings growth rate of 10.2% for the current year.

The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.1% upward over the past 90 days. Leidos carries a Zacks Rank #2 (Buy).

Iridium Communications Inc. IRDM operates a satellite constellation, a system of 66 active satellites which is used for worldwide voice and data communication. The company’s expected earnings growth rate for the current year is 58.7% compared with the Zacks Satellite and Communication industry’s projected earnings growth of 5.7%. The Zacks Consensus Estimate for its current-year earnings has moved 24% up over the past 60 days. Iridium Communications carries a Zacks Rank #2.

Virgin Galactic is an integrated aerospace company that develops human spaceflight for private individuals and researchers. The company’s expected earnings growth rate for the current year is 64.3% compared with the Zacks Aerospace – Defense industry’s projected earnings growth of 15.5%. The Zacks Consensus Estimate for its current-year earnings has moved 14.8% up over the past 60 days. Virgin Galactic carries a Zacks Rank #3 (Hold).

Lockheed Martin Corporation LMT is a security and aerospace company that engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. The company’s expected earnings growth rate for the current year is 7.6% against the Zacks Aerospace – Defense industry’s projected earnings decline of 5.6%. The Zacks Consensus Estimate for its current-year earnings has moved 0.5% up over the past 60 days. Lockheed Martin carries a Zacks Rank #3.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report   Lockheed Martin Corporation (LMT): Free Stock Analysis Report   Iridium Communications Inc (IRDM): Free Stock Analysis Report   AeroVironment, Inc. (AVAV): Free Stock Analysis Report   Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report   Virgin Galactic Holdings, Inc. (SPCE): Free Stock Analysis Report   To read this article on Zacks.com click here.   Zacks Investment Research

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The Impact Investor | ESG Investing Blog

Investing for financial return is only part of the equation.

11 Best Space Travel Stocks to Invest In Today

Updated on April 11, 2024

Our posts may contain links from our affiliate partners. This supports helps support the site as we donate 10% of all profits to sustainability organizations that align with our values. However, this does not influence our opinions or ratings. Please read our Terms and Conditions for more information.

Is space travel a lucrative industry? Will your investment in space travel stocks offer great returns? Let’s take a deep dive into this century’s old industry and find out.

Humans love a good challenge – stretching their abilities and exploring beyond the obvious!

That’s why space exploration has become increasingly famous over the years. Since Yuri Gagarin’s 108-minutes space orbit, more individuals and companies have joined the space race.

In this light, the space exploration industry has rapidly grown and shows even more signs of increased growth in the future.

And as big names like Amazon and Virgin Galactic join the industry, investors can’t avoid thinking about space travel stocks.

The truth is, space tourism seemed like a farfetched dream to many some years ago. However, with the rate at which technology is advancing , the idea might become a reality sooner than we think.  

But, even with the hype about space exploration, should investors throw their weight on the matter and invest in space travel stocks? And if yes, what are the best space stocks to watch out for?

Let’s find out.

Table of Contents

Top Space Travel Stocks to Invest In Right Now

1. aerojet rocketdyne, 2. iridium communications inc., 3. virgin galactic, 4. northrop grumman corporation, 5. lockheed martin corporation, 6. howmet aerospace inc. (nyse: hwm), 7. ark space exploration & innovation etf, 9. maxar technologies (nyse: maxr), 10. rocket lab usa inc., 11. astra space inc., how to buy space travel stocks, pros and cons of investing in space travel stocks, pros of space travel stocks, cons of space stocks, is investing in space travel stocks profitable, related resources.

Formerly known as Aerojet, this is one of the oldest rocket and missile propulsion manufacturers globally, having been established back in 1915. However, it adopted the name Aerojet Rocketdyne much later in 2015, after it acquired Pratt & Whitney Rocketdyne.

This American rocket manufacturing oldie, based in Sacramento, California, is known to design, manufacture and even sell aerospace and defense systems products in the US.

Generally, the company has two divisions of focus.

• Aerospace and Defense
• Real Estate

The first section deals with anything you might think about space travel and defense. This includes rocket propulsion systems (solid and liquid), hypersonic engines, propulsion systems (defense, civil, and space), etc.

On the other hand, its real estate division deals with re-zoning, entitlement, lease, and sale of the company’s real estate assets (excess).

The company’s decades of experience and success put it among the best companies to invest in when it comes to space travel stocks.

Aerojet Rocketdyne Holdings, Inc. is listed on NYSE as AJRD if you wish to make your space travel stocks purchase.

See Related: How to Invest in Stocks: A Comprehensive Guide for 2023

Iridium is another space travel company that keeps Aerojet on its toes. While many analysts view Aerojet as a slow-growth one, most consider Iridium as a faster one in growth.

Iridium pegs its rapid growth rate to two main factors:

• Little competition to its “L-Band” satellite phone signals spectrum choice.
• Completion of its satellite constellations before most other competitors.

Generally, when Aerojet Rocketdyne is trying to handle continued competition from emerging companies, Iridium has almost no problem in that area. For instance, while companies like SpaceX’s Starlink or Amazon Kuiper leases shorter K-Band spectrum wavelengths, Iridium uses a longer spectrum (L-Band).

Also, as Amazon and SpaceX (a private company) try to build their satellite constellations, Iridium is already there. This allows the company to generate more money without requiring enormous new capital injection.

For these reasons and more, it goes without saying that Iridium offers some of the best space stocks for investors when it comes to space-related activities.

See Related : Best Edge Computing Stocks to Invest In Today

This American spaceflight company was founded by Richard Branson, one of the core founders of Virgin Atlantic. The company has its headquarters in California, operating from New Mexico.

Virgin Galactic Holdings Inc. has, without a doubt, become a major player in the space travel industry. In fact, if you’ve heard of the term space tourism, the company is at the forefront to make this dream come true.

By developing commercial spacecraft, the company targets to offer suborbital spaceflights to interested space tourists.

As I mentioned earlier, humans love a good challenge. And with this in mind, the space tourism industry is predicted to exponentially grow, something that adds value to the company’s current value.

I know that many people still see space tourism as a farfetched idea. But, advancement in technology is proving us wrong every day. With Benzos and Branson showing us that it’s possible, it’s now just a matter of time before the idea is no longer only for the billionaires. Commercial service might be introduced soon.

Space travel is one industry that shows significant growth potential and one that investors shouldn’t ignore. But, if you should invest in Virgin Galactic space travel stocks, be ready as the big profits might not come tomorrow.

Among the list of best space travel stocks companies for your portfolio, Northrop Grumman is a must-feature. Like Aerojet, Northrop Grumman is known for manufacturing space and defense systems, with some government contracts under its belt.

Each passing year, the company gets more involved in the space travel industry. This has seen its stocks grow to become one of the best space stocks to buy in the industry.  

For instance, between 2016 and 2020, the company was working on the OmegA space launch vehicle. Also, the company is part of the lunar lander developing team, which is a great boost to its growth.

And that’s not all. The company is developing the Transfer Element under the Artemis program. This will make it possible for humans to land on the moon again.  

Generally, the company has a lot of new things coming up that will certainly have an even better impact on its growth. Therefore, if you are looking for space travel stocks, this is one company whose growth potential is not in doubt.

Whether it’s helping the US make another moon landing, offering telescopes support to NASA, or building Cygnus (a spacecraft for transporting cargo to space), Northrop Grumman has so much to offer.

Its stocks continue to be attractive and are projected to be even better for long-term investors.

See Related: AGCO Corporation ESG Profile (AGCO): Is It Sustainable?

When it comes to aerospace and defense technology, Lockheed Martin ranks among the top global players. Formed in 1995, after a merger between Lockheed Corporation and Martin Marietta, this American corporation has continually grown to become one of the largest industry leaders.

The company mostly deals with aerospace, information security, arms, and defense technologies, offering services and products to governments and other companies.

In 2014, Lockheed Martin was named the largest defense contractor globally for that fiscal year. This is a clear indication that the company’s stocks can be great for your investment portfolio .

While initially, it wasn’t too much into space technology, the few years it has been there, it has challenged even the industry’s oldies like Aerojet.

Its current products include government and commercial use satellites and spacecraft. And, the company holds numerous contracts from various governments around the globe.

The good thing about Lockheed Martin is that it has numerous other divisions besides space travel, which add to its revenue growth. This means it’s among the most stable space travel companies in the industry, subsequently offering some incredible space travel stocks.

You might not be traveling to the moon, but you can make some good money from the space travel industry.

Howmet Aerospace is an American aerospace firm and a renowned global provider of aerospace-engineered metal products. The company has contributed immensely to space travel, with its products featuring in spacecraft’s engines, forged wheels, turbines, and fastening systems.

When I say Howmet Aerospace is a world aerospace leader, it’s because this is pretty much a fact. The company, which specializes in aluminum alloys, is responsible for manufacturing over 90% of the components ever flown. In fact, most of its products played a major role in the Apollo spacecraft’s landing on the moon.

In addition, Howmet doesn’t only deal with aerospace products and technology. It also develops and manufactures defense technologies, having several contracts with government and commercial customers.

Its expansive experience in this field, as well as its ability to keep innovating, means that you can trust it with your money. If you like what you’ve seen, you can invest in Howmet’s promising space travel stocks.

See related: 21 Best ESG ETFs to Invest In Today.

Sometimes, the process of determining the best space companies is not straightforward and can be tiring. But, with ARK Invest ETF (ARKX), all this can be a thing of the past.

How do I mean?

Instead of going through numerous space travel companies on your own, this fund helps you do so. It is a fund that focuses on investing its shareholders’ money on stocks and other financial assets of companies in the space travel industry. 

The fund invests in some of the industry’s big names, including Iridium communications, Howmet Aerospace inc., Lockheed Martin, etc. This means that if you want to invest in these companies, getting the stocks at an even lower price, this exchange-traded fund might be your best chance.

The fund has a diverse portfolio that includes not only companies manufacturing and selling aerospace technology but also those that benefit from this aerospace technology—for instance, agriculture and imaging.

You’ll come to realize that it is easier and cheaper to procure space ETF with ARKX than buying the stocks directly from the companies.

When the individual companies grow, Ark stocks also appreciate. And With Ark Invest, you have access to all the space travel company stocks you want and more.

See related: 10 Best Ethanol Stocks and ETFs to Invest in Today.

Boeing is one company that is quite popular in manufacturing aircraft. However, what most people don’t know is that the company is also involved in space travel projects that are worth noting.

Since it was established in 1916, Boeing has grown immensely, showing incredible consistency in both air and space travel sectors. Like many other companies in the aerospace industry, Boeing focuses on defense, security, and space travel technology.

It offers various spacecraft products and services, including space planes, launch systems, probes, satellites, etc. And, it works with various agencies like NASA on different space projects.

For example, since the space shuttle ceased operations in 2011, Boeing’s Starliner now transports astronauts to and from the ISS (International Space Station). The Starliner acts as a “space taxi” for astronauts, adhering to the Federal Aviation Administration regulations.

This means that Boeing has more businesses in the aerospace industry to generate enough revenue for its investors.

While the company’s stock might sometimes struggle (like during the 2020 pandemic), it still offers some of the most promising space travel stocks to invest in.

See Related: Best Stock Screeners to Use

Max Technologies, which was formed as a merger between MDA Holdings Company and DigitalGlobe, is a new company that has incredible potential in the space travel industry.

The company has its headquarters in Westminister, Colorado, and specializes in the manufacture of earth observation, communication, satellite products, radar, etc. It also offers on-orbit satellite’ servicing and other related services.

Being new in the market doesn’t stop Maxar from making notable strides. For instance, it has already acquired Vicron, a 3D satellite data company. Currently, the company manufactures satellites while still offering satellite imagery and data access for its clients.

However, even with numerous successes, the company’s stock prices haven’t been so stable. But, as Maxar completes more projects and gains more rooting into the industry, all this is expected to change.

As I said, the company seems to have significant growth potential. However, ensure that you’ve done more extensive research before, including it on your space travel stocks portfolio.

As they have put it on their website, they aim to open up space, to make life on earth better. This has some amount of truth in it.

Formerly known as Vector Acquisition Corp, Rocket Lab is an American aerospace company known to manufacture small to medium-class spacecraft, rockets, satellites, and other products that support the aerospace industry. Some of its main spacecraft products include star trackers, reaction wheels, batteries, and magnetic torque.

The company has launched over 100 satellites in space through its Electron rocket. Also, it is responsible for launching the “Advanced Composite Solar Sail System” by NASA.

The growth trend of this company is something that investors should consider. Its share price continues to grow, which is quite an appeal for new investors.

And, while we might not be able to predict how the company’s future will be, it sure looks bright.

See Related: What are Stock Futures? Here’s What to Know

Last but certainly not least on our list of best space travel stocks are the Astra Space stocks. Incorporated in 2016, this is a fairly new American launch vehicle located in Alameda, California.

Like many other companies in this industry, Astra has had several successes that make us consider it among the best potential space travel stocks companies to invest in.

In addition, its investors’ list includes some of the big names around, including Airbus Ventures, BlackRock, ACME, and Innovation Endeavors.

If such big names have trust in the company, it only means that the company is making them some good money. If you want to share in this aerospace company’s profits, you might as well start your investing journey right now.

The future for this industry seems quite bright, and Astra Space Inc. may be the best place to make your investment breakthrough.

See Related: What’s the Impact of Climate Migration?

Buying space travel stocks is not different from buying any other publicly traded stocks. You use the same platforms and processes.

An online stockbroker is the easiest way to buy stocks of any kind, including space travel ones. But, not the only option. All you need is to first identify the right stockbroker and open an online brokerage account with them.

Once you have the account, you can start your journey of investing in the space travel industry. But, you’ll need to first fund your account to start trading. The account opening process is pretty easy, with most taking around 15 minutes.

Some of the best online stockbrokers include:

• Merrill Edge
• InteractiveBrokers

All these options charge $0 per trade when dealing with US stocks and ETFs. They also don’t require any minimum account balance.

Other options for buying stocks include direct purchase from the company, full-service stockbrokers, or Robo-advisors.

Robo-advisors are simply automated investing tools or platforms that will assess your financial goals and offer the best investment stocks based on your risk tolerance and investing timeline.

During your sign-up process, the robo-advisor will prompt you to answer several questions, which will guide it in building your portfolio.

The platform then helps you invest in exchange-traded funds based on your needs. You can pick a Robo-advisor of your choice from this list:

• Personal Capital
• Wealthsimple

Choosing the right platform makes your investing journey in space stock quite easy and profitable.

See Related:

Every industry has its highs and lows. And to help us better determine if space stocks are worth investing your money into, let’s look at both their upsides and downsides.

1. Great Growth Potential

Although the space business has existed for over a century now, it was dominated by several big companies like Aerojet. However, this seems to take a completely new turn as more new and vibrant companies join the industry. This new trend has seen the space industry grow tremendously, with an even greater potential for future growth.

As technological advances continue to emerge, the dream of space travel becomes a more realistic idea than it was several years back.

So, if you had thoughts about investing in space travel, this might be the best chance to reap current and future benefits.

2. Easy to Buy

As explained earlier, there are various ways through which you can buy or invest in space travel stocks . Whether you are using a stock brokerage account or a Robo-advisor, it’s never complicated.

All you need to procure space ETF is to get the right platform, and you are good to go.

3. Opens Up More Possibilities

The space industry is still new, especially considering how much there is to be discovered in space. This means that as we explore more, the more opportunities the industry has for the production and sale of aerospace products.

But, since we can’t tell exactly how more discoveries will influence life on earth, we can only imagine better investment opportunities.

See Related: Best ESG Funds to Invest in Today

1. Uncertain Future

While we are quite optimistic about a brighter future, it’s still all about speculations. Some companies might have shown the possibility of a lucrative industry, but we still don’t know how future exploration findings might affect these companies’ stock prices and profitability.

2. The Industry Might Take Longer to Grow

More companies have joined the industry. However, we don’t know how long it will take for it to reach its full potential.

Therefore, when buying your stocks, you might need to contend with average returns for now, as well as greater risk potential in the future.

3. Price Fluctuations

Due to the law of supply and demand, stocks prices keep changing every now and then. This is as people buy more, expecting higher returns, or sell more, fearing losses.

The fluctuations might benefit or hurt your investment.

Profitability is mostly what makes any investment valuable – unless you are doing it for other reasons like environmental conservation or climate change.

The truth is, the space industry is gaining momentum by the day. More investors are becoming confident about the sector and are ready to invest their money there. This means that while other stocks, like in traditional airlines, might already be doing well, the space travel ones also have growth potential.

The more space companies and investors enter the sector, the more it will grow. Therefore, while it might not be easy to outrightly say whether investing here is the best idea or not, more facts tend to support the former.

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Kyle Kroeger, esteemed Purdue University alum and accomplished finance professional, brings a decade of invaluable experience from diverse finance roles in both small and large firms. An astute investor himself, Kyle adeptly navigates the spheres of corporate and client-side finance, always guiding with a principal investor’s sharp acumen.

Hailing from a lineage of industrious Midwestern entrepreneurs and creatives, his business instincts are deeply ingrained. This background fuels his entrepreneurial spirit and underpins his commitment to responsible investment. As the Founder and Owner of The Impact Investor, Kyle fervently advocates for increased awareness of ethically invested funds, empowering individuals to make judicious investment decisions.

Striving to marry financial prudence with positive societal impact, Kyle imparts practical strategies for saving and investing, underlined by a robust ethos of conscientious capitalism. His ambition transcends personal gain, aiming instead to spark transformative global change through the power of responsible investment.

When not immersed in the world of finance, he’s continually captivated by the cultural richness of new cities, relishing the opportunity to learn from diverse societies. This passion for travel is eloquently documented on his site, ViaTravelers.com, where you can delve into his unique experiences via his author profile.

Virgin Galactic surges 47% as Richard Branson's space tourism company preps first commercial flight

• Shares of Virgin Galactic soared on Friday on news the company was readying commercial flights.
• After years of delays, the first flight will take place on June 27, with another scheduled for August.
• The stock spiked 47% Friday, but is still trading far below highs reached in 2021. 

Virgin Galactic stock rocketed as much as 47% higher on Friday, as investors cheered the news that the space tourism company was preparing its first commercial flights after a long series of delays. 

Soon after the market opened, the stock jumped to $5.97, then pared its gain to $5.50, up 36% from Thursday's close. 

Billionaire Richard Branson's space company announced that the first flight, dubbed Galactic 01, is scheduled between June 27 and June 30. The flight will carry a science team of three crew members from the Italian air force who will conduct microgravity research, the company said. A second flight will follow in early August. Private space flights will cost $450,000 per ticket, according to the Wall Street Journal. 

The news comes after a string of delays and technical issues that pushed out the date of Virgin's first commercial operations. The company has also struggled to make money. It rode a wave of enthusiasm around the SPAC boom in the early days of the pandemic, but ultimately missed its 2021 revenue projection by 98% .

As the air came out of the SPAC bubble over the course of 2022, many firms that went public in a merger with a blank-check firm saw their stock price crumble. Virgin Galactic is trading far below highs reached in 2021, when the stock was trading at nearly $60 per share. 

In 2021, Branson was aboard the first fully crewed spaceflight of Virgin Galactic's SpaceShipTwo. That was part of the test flight program.

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Three industries bolstering modern space commerce.

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Dylan Taylor, Chairman & CEO, Voyager Space Holdings .

Expansion is a timeless and crucial part of modern business, and today, that fact has grown to include space . An increasing number of industries worldwide are now looking to space for commercial ventures, augmenting their existing infrastructure and offerings through this ambitious new medium. Practical applications in this regard are widespread, but several industries are already embracing space for commerce-related matters. Based on my experience in the space exploration technology industry, here are three sectors that are showing the greatest levels of interest.

Perhaps the most noteworthy industry within space commerce is tourism—specifically, that pertaining to the rising subsector of commercial space tourism . As more private clients become interested in space travel as a strictly experiential, leisure-oriented investment, this sector has exemplified the notion of nongovernmental yet commercially viable space business. If you are a leader in the tourism industry, you may want to consider preparing to integrate the ever-evolving space tourism infrastructure into your existing framework. This process may include assessing rapidly changing market sentiments and subsequent partnership opportunities with leading commercial space entities, which can help ensure a more well-rounded and fluid implementation process that can ultimately become more dynamic for consumers as space travel becomes a more viable, accessible reality.

For now, such voyages have remained a fairly exclusive offering, but the sector’s rapid growth suggests future opportunities for more individuals to experience space , and with this comes more implications for investment within space tourism and its adjacent industries. One recent example is an ongoing collaboration between Amazon Web Services (AWS) and Axiom in utilizing AWS Snowcone, a revolutionary computing and storage device integrated with the International Space Station (ISS). This initiative demonstrates the tourism industry’s involvement in space commerce by enabling high-level computing and data transfer while mitigating latency and limited bandwidth—all of which can bolster a stronger, more seamless communication network amid parallel commerce-related advancements.

2. Engineering

A cornerstone of all space infrastructure, the engineering field is invaluable for establishing and maintaining a functional space economy. Today’s engineers are responsible for conceptualizing, designing and integrating the technological systems necessary for space’s ongoing commercialization—propulsion systems, advanced satellites, reusable rockets and countless other resources that enable a more diverse involvement in space. In turn, these advancements present transformative potential for engineering at large, allowing the sector to help shepherd in a new age of comprehensive, more affordable space infrastructure—but only if it is willing to remain both urgent and forward-thinking. For leaders in the industry, I recommend dividing your focus between progressive research and development initiatives, ongoing dialogues related to aerospace regulation and protocol, and high-level technological risk assessment to bolster both engineering prowess and lasting well-being for future fliers.

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Beyond technology, engineers have helped facilitate crucial collaborations and partnerships that fortify space commerce’s dynamic framework . As more private companies invest in space exploration and commercial tourism, engineers are at the heart of many of the initiatives to reduce related costs and increase both safety and reliability, channeling these values into new projects supporting economic activity. By actualizing the hardware to make these aspirations a reality, engineers can help carve a clearer path for a fluid capital allocation and new economic opportunity.

3. Telecom And Data Transfer

The future of telecom and the future of space are now inextricably linked, evident in our growing satellite communication networks and increasingly space-rooted communication methods on Earth. It seems natural that this sector’s growth will eventually transcend planetary communication and warrant stronger, more reliable telecom systems in space—another foundational asset to a viable space economy.

For space commerce to reach fruition, telecom and data transfer must be sound to support a wider spectrum of transactions and related communications. However, advanced digital communication solutions also stand to augment peripheral technological processes, as displayed by entities like Orbit Fab, which is working to make remote, geosynchronous satellite refueling a commercial reality. Such advancements could lead to positive, lasting change via diligence within the present telecom and data transfer landscape, especially if industry leaders commit to multifaceted expertise in collecting, analyzing and implementing satellite data and using it as a foundation for insightful and safe decision-making. Telecom leaders can also tackle ongoing challenges related to space data processing and ever-changing regulatory compliance measures—both of which could define space communication and data discussion for years to come.

Like many sectors rooted in research and exploration, space could be one of the most prevailing and potentially disruptive domains of modern times. I believe the increased participation of our largest industries in such activity can help elevate present advancements to greater heights and fully realize economic concepts previously thought impossible.

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Boeing is on the verge of launching astronauts aboard new capsule, the latest entry to space travel

Boeing’s Starliner capsule atop an Atlas V rocket is rolled out to the launch pad at Space Launch Complex 41, Saturday, May 4, 2024, in Cape Canaveral, Fla. NASA astronauts Butch Wilmore and Suni Williams will launch aboard to the International Space Station, scheduled for liftoff on May 6, 2024. (AP Photo/Terry Renna)

NASA’s Boeing Crew Flight Test astronauts Suni Williams and Butch Wilmore exit the Neil A. Armstrong Operations and Checkout Building at the agency’s Kennedy Space Center in Florida during a mission dress rehearsal on Friday, April 26, 2024. The first flight of Boeing’s Starliner capsule with a crew on board is scheduled for Monday, May 6, 2024. (Frank Micheaux/NASA via AP)

Boeing Crew Flight Test crew members Suni Williams and Butch Wilmore work in the Boeing Starliner simulator at the Johnson Space Center in Houston on Nov. 3, 2022. The first flight of Boeing’s Starliner capsule with a crew on board is scheduled for Monday, May 6, 2024. (NASA/Robert Markowitz)

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CAPE CANAVERAL, Fla. (AP) — After years of delays and stumbles, Boeing is finally poised to launch astronauts to the International Space Station for NASA.

It’s the first flight of Boeing’s Starliner capsule with a crew on board, a pair of NASA pilots who will check out the spacecraft during the test drive and a weeklong stay at the space station.

NASA turned to U.S. companies for astronaut rides after the space shuttles were retired. Elon Musk’s SpaceX has made nine taxi trips for NASA since 2020, while Boeing has managed only a pair of unoccupied test flights.

Boeing program manager Mark Nappi wishes Starliner was further along. “There’s no doubt about that, but we’re here now.”

The company’s long-awaited astronaut demo is slated for liftoff Monday night.

Provided this tryout goes well, NASA will alternate between Boeing and SpaceX to get astronauts to and from the space station.

A look at the newest ride and its shakedown cruise:

NASA’s Boeing Crew Flight Test astronauts Suni Williams and Butch Wilmore exit the Neil A. Armstrong Operations and Checkout Building at the agency’s Kennedy Space Center in Florida during a mission dress rehearsal on Friday, April 26, 2024. (Frank Micheaux/NASA via AP)

THE CAPSULE

White with black and blue trim, Boeing’s Starliner capsule is about 10 feet (3 meters) tall and 15 feet (4.5 meters) in diameter. It can fit up to seven people, though NASA crews typically will number four. The company settled on the name Starliner nearly a decade ago, a twist on the name of Boeing’s early Stratoliner and the current Dreamliner.

No one was aboard Boeing’s two previous Starliner test flights. The first, in 2019, was hit with software trouble so severe that its empty capsule couldn’t reach the station until the second try in 2022. Then last summer, weak parachutes and flammable tape cropped up that needed to be fixed or removed.

Veteran NASA astronauts Butch Wilmore and Suni Williams are retired Navy captains who spent months aboard the space station years ago. They joined the test flight after the original crew bowed out as the delays piled up. Wilmore, 61, is a former combat pilot from Mount Juliet, Tennessee, and Williams, 58, is a helicopter pilot from Needham, Massachusetts. The duo have been involved in the capsule’s development and insist Starliner is ready for prime time, otherwise they would not strap in for the launch.

“We’re not putting our heads in the sand,” Williams told The Associated Press. “Sure, Boeing has had its problems. But we are the QA (quality assurance). Our eyes are on the spacecraft.”

THE TEST FLIGHT

Starliner will blast off on United Launch Alliance’s Atlas V rocket from Cape Canaveral Space Force Station. It will be the first time astronauts ride an Atlas since NASA’s Project Mercury, starting with John Glenn when he became the first American to orbit the Earth in 1962. Sixty-two years later, this will be the 100th launch of the Atlas V, which is used to hoist satellites as well as spacecraft.

“We’re super careful with every mission. We’re super, duper, duper careful” with human missions, said Tory Bruno, CEO of ULA, a joint venture of Boeing and Lockheed Martin.

Starliner should reach the space station in roughly 26 hours. The seven station residents will have their eyes peeled on the approaching capsule. The arrival of a new vehicle is “a really big deal. You leave nothing to chance,” NASA astronaut Michael Barratt told the AP from orbit. Starliner will remain docked for eight days, undergoing checkouts before landing in New Mexico or elsewhere in the American West.

STARLINER VS. DRAGON

Both companies’ capsules are designed to be autonomous and reusable. This Starliner is the same one that made the first test flight in 2019. Unlike the SpaceX Dragons, Starliner has traditional hand controls and switches alongside touchscreens and, according to the astronauts, is more like NASA’s Orion capsules for moon missions. Wilmore and Williams briefly will take manual control to wring out the systems on their way to the space station.

NASA gave Boeing, a longtime space contractor, more than $4 billion to develop the capsule, while SpaceX got $2.6 billion. SpaceX already was in the station delivery business and merely refashioned its cargo capsule for crew. While SpaceX uses the boss’ Teslas to get astronauts to the launch pad, Boeing will use a more traditional “astrovan” equipped with a video screen that Wilmore said will be playing “Top Gun: Maverick.”

One big difference at flight’s end: Starliner lands on the ground with cushioning airbags, while Dragon splashes into the sea.

Boeing is committed to six Starliner trips for NASA after this one, which will take the company to the station’s planned end in 2030. Boeing’s Nappi is reluctant to discuss other potential customers until this inaugural crew flight is over. But the company has said a fifth seat will be available to private clients. SpaceX periodically sells seats to tycoons and even countries eager to get their citizens to the station for a couple weeks.

Coming soon: Sierra Space’s mini shuttle, Dream Chaser, which will deliver cargo to the station later this year or next, before accepting passengers.

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

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3 space stocks to turn $100,000 into $1 million: april 2024.

How would you like to turn a $100,000 investment into $1 million?

This may become a reality with a space stocks bet. Although doing so would require significant growth over the next 10-15 years, they have potential to deliver outsized returns. The question is – are you a patient, risk-tolerant investor?

Over the past decade, we’ve witnessed a transformation in the space economy, driven by rapid leaps in technology and falling launch costs. But of course, investing in space ventures is not without its risks. The industry is highly capital-intensive and subject to technical challenges. Any failed launch or other black swan event can be a catastrophe for the company’s stock price. In turn, this can make them volatile and occasionally destructive to an investor’s portfolio.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Regardless, many believe in a bright future for space stocks. And investors who get in early with a sizable investment will be rewarded handsomely. So let’s examine three space stocks for investors to consider to turn $100,000 into seven figures.

ViaSat (VSAT)

Source: rafapress / Shutterstock.com

ViaSat (NASDAQ: VSAT ) provides high-speed satellite broadband services.

The investment rationale for buying VSAT shares hinges on the company’s recovery prospects following the VS-3 satellite project setback, amid a satellite malfunction . ViaSat has scheduled new satellite launches for 2024 so recovery from this setback may be possible. New launches are anticipated to significantly enhance its market value.

Additionally, ViaSat has recently secured several strategic agreements. One includes an extended partnership with Porter Airlines . And others involve collaborations with the U.K. and Japanese space agencies.

More broadly, analysts understand VSAT’s future as accretive. Further, incremental EPS improvements are forecast as well as a huge revenue surge of 68.57% for the business. Thus, it is well-positioned for strong capital appreciation.

Virgin Galactic (SPCE)

Virgin Galactic (NYSE: SPCE ) focuses on space travel and has a niche for recreational spaceflights.

SPCE is one of those stocks that could mint new millionaires. Recently, it  completed its 11th spaceflight, Galactic 06, where private astronauts filled all four seats for the first time. Also, it has a strong pipeline of ships ahead to complement its offering. Its delta-class spacecraft is expected to begin testing in 2025 while commercial services are projected to start in 2026.

Financially, SPCE reported a revenue of $2.8 million for the fourth quarter of 2023. And total revenue came in at $6.8 million for the fiscal year. The company is looking to expand its market by targeting approximately 300,000 individuals interested in private astronaut space travel. They have strategic plans set for execution to tap into this potential customer base.

SPCE’s stock price of just $1.08 at the time of writing and market cap of just $400 million gives it plenty of room to potentially explode in value.

AST SpaceMobile (ASTS)

Source: Andrey Suslov / Shutterstock.com

AST SpaceMobile (NASDAQ: ASTS ) concentrates on building the first space-based cellular broadband network.

The company’s ambitious plan is great for internet connectivity in general. But its satellites are expected to cover the world’s under covered regions which traditional broadband can’t reach.

For the fiscal year 2023, no revenue growth is expected for ASTS stock. However, analysts forecast a turnaround in FY2024 with the company reaching breakeven profitability by the end of FY2026.

Moreover, its long-term prospects haven’t yet been fully priced into the stock price, as it trades for $2.13 at the time of writing.

Furthermore, progress is evident for ASTS as it advances in closing its fundraising efforts. AST SpaceMobile secured initial orders for ground infrastructure from two customers in anticipation of its planned commercial service.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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Amazon earnings results: AMZN stock rallies after hours from AI-fueled AWS growth, Q1 sales and profit beats

• Amazon reported first-quarter earnings on Tuesday.
• The company beat estimates for net sales and earnings per share.
• Shares rose as much as 3% in after-hours trading.

Amazon reported first-quarter earnings on Wednesday after the closing bell.

The company handily exceeded estimates for net sales and earnings per share, including a beat for the closely watched Amazon Web Services (AWS) division, which saw net revenue of $25 billion.

Amazon is seeing "considerable momentum" on the AI front, which is helping AWS to a $100 billion annual run-rate, it said.

Amazon's stock rose as much as 3% in volatile after-hours trading after the results as investors focused more on the first-quarter beat than slightly weak second-quarter guidance. The stock slid 3.3% on Tuesday, but has gained 15% so far in 2024.

Amazon's shares are still up as the call ends

The stock hovered just under the 3% mark in after-hours trading.

Amazon Fresh's new format and the company's grocery delivery service are also taking off

The company has launched Amazon Fresh new-format stores primarily in Chicago and south California, and "we like the early results," said the execs, saying they are "really meaningfully better in almost every dimension."

Meanwhile, its new Amazon Prime grocery offering is "very valuable, I think, for our Prime members, and off to a great start."

CEO says Amazon's Prime Video ads are off to a good start

While still in its early days, Amazon's introduction of ads to its streaming service's movies and TV shows appears to have been resonating with advertisers.

"I think advertisers are excited about being able to expand their ability to advertise and as video beyond Twitch and Freevee," the Amazon CEO says.

CEO says AWS is seeing strong customer demand for generative AI and non-generative AI workloads

CEO Jassy says customers are "signing up for longer deals and making bigger commitments."

"It's still relatively early days in general AI and more broadly, the cloud space and we see sizable opportunity for growth," the CEO adds.

But he warned that spending will "meaningfully increase" year over year in 2024, partly because of higher infrastructure spending on growth efforts like generative AI.

On a macro level, he notes that spending in Europe is "a bit weaker" compared to expenditure in the US.

Investors are keen to hear about Amazon's AI strategy, and got some color early in the call

"We see considerable momentum on the AI front where we've accumulated a multi-billion-dollar revenue run rate already," CEO Andy Jassy said on the call.

That's helped AWS to a $100 billion annual run-rate, Amazon reported earlier.

Amazon's investor call kicks off on Tuesday afternoon

Analysts and investors will be listening for more details on the e-commerce giant's Q1 earnings.

Amazon's CFO says customers are trending toward buying cheaper items

CFO Brian T. Olsavsky said on a call with journalists including Business Insider that shoppers are being very thoughtful about their spending.

"They look for deals, they trade down and look for lower ASP (average sale price) products," Olsavsky said.

People are buying "a lot more consumables and everyday essentials," which tend to be lower-priced — a trend that's continuing into this current quarter.

"So we're seeing strong unit growth, but our average sale prices are not growing as fast as are down, and so revenue growth is below the unit growth rate," the CFO said.

Amazon's ecommerce turnaround is still showing momentum, analyst says

"While the core e-commerce business is no longer the biggest growth driver, it remains an essential component of the Amazon flywheel, particularly in propelling its ad business," Blake Droesch, a senior analyst at market research firm Emarketer, a sister company to Business Insider, wrote in a note.

The analyst added that Amazon's commitment to free and fast delivery through Amazon Prime will "keep customers coming to the site." The e-commerce giant said in its earnings release that it delivered to Prime members at its "fastest speed yet."

Amazon's AI-powered assistant, Q, is now widely available

The announcement comes after the company unveiled Q last November to select AWS customers.

Amazon's cloud division calls Q its "most capable" generative AI tool for "accelerating software development" and "leveraging companies' internal data," according to its latest press release .

Q can generate code and fix bugs. When deployed internally, it could also help employees get answers to questions related to company policies and product information, according to the company.

Amazon stock rises 3% in after-hours trading after 1st-quarter beat.

The stock had slid 3.3% on Tuesday, but has gained 15% so far in 2024.

Amazon handily beats estimates for 1st-quarter net sales and EPS, 2nd-quarter outlook slightly soft.

1st quarter

Net sales: $143.31 billion, +13% y/y, estimate $142.59 billion

Online stores net sales: $54.67 billion, +7% y/y, estimate $54.77 billion

Physical Stores net sales: $5.20 billion, +6.3% y/y, estimate $5.08 billion

Third-Party Seller Services net sales: $34.60 billion, +16% y/y, estimate $34.63 billion

AWS net sales: $25.04 billion, +17% y/y, estimate $24.11 billion

North America net sales: $86.34 billion, +12% y/y, estimate $85.55 billion

International net sales: $31.94 billion, +9.7% y/y, estimate $32.47 billion

Third-party seller services net sales excluding F/X: +16% vs. +20% y/y, estimate +15.8%

Amazon Web Services net sales excluding F/X: +17% vs. +16% y/y, estimate +14.5%

EPS: 98c vs. $1 q/q, estimate 83c

Operating income: $15.31 billion vs. $4.77 billion y/y, estimate $10.95 billion

Operating margin: 10.7% vs. 3.7% y/y, estimate 7.63%

North America operating margin: +5.8% vs. +1.2% y/y, estimate +4.92%

International operating margin: 2.8% vs. -4.3% y/y, estimate -1.85%

Fulfillment expense: $22.32 billion, +6.8% y/y, estimate $22.4 billion

Seller unit mix: 61% vs. 59% y/y, estimate 59.5%

2nd quarter

Sees net sales of $144.0 billion to $149.0 billion, estimate $150.21 billion

Sees operating of income $10.0 billion to $14.0 billion, estimate $12.56 billion

Source: Bloomberg data

BMO: Primed to outperform

Amazon is set to grow more than expected in the second half of the year, BMO predicts. AWS growth could notch 15% by the end of 2024, analysts predicted, up from previous estimates of 14%.

The impact of Rufus, Amazon's AI shopping assistant, is also "underappreciated," the bank said.

"Amazon retail is a significant beneficiary of generative AI, which helps surface users' most relevant product recommendations and create pick paths for associates in FCs," analysts wrote in a note.

The firm raised its price target for Amazon stock to $215 a share, implying 21% upside from current levels.

Needham: Amazon among the winners in AI

Amazon is expected to outperform across multiple profit metrics, Needham analysts said.

"We believe that cost cutting, as well as Cloud and Advertising rev growth ... will result in overdelivery of FCF and ROICs, which should lead to a valuation multiple expansion," analysts said in a recent note.

They predicted the company would be among the top two or three winners of the AI race that's gripped Wall Street.

However, the bank noted that Amazon's business still faces risks, including weak consumer demand and rising competition.

Goldman Sachs: Top eCommerce pick into first quarter

Amazon is a top pick in the eCommerce sector, Goldman analysts said. The bank pointed to the company's resilient retail demand and expected growth in AWS and ad revenue.

"Our industry work and the third-party data sources we surveyed point to online consumer spending remaining resilient in Q1'24. But we see a wide dispersion of results between companies," the analysts wrote.

The bank maintained its "Buy" rating and $220 price target, implying a 22% upside from the stock's current levels.

Wells Fargo: Healthy trends for the first quarter

Amazon looks to be on a good trajectory, especially considering that the company is looking to change its fee structure for its Fulfillment by Amazon program. That alone could drive up to $1.2 billion in incremental operating income compared to the previous quarter, Wells Fargo analysts estimated.

"Believe revenue recognized from enterprise cloud migrations still relatively tepid in 1Q but commitments in place for 2H acceleration," the bank said in a recent note.

Analysts raised their price target for Amazon stock to $217, implying a 20% upside from current levels.

Bank of America: Top stock drivers are in play

Amazon is expected to post healthy growth over the first quarter, BofA analysts said. The bank pointed to Amazon CEO Andy Jassy's letter to shareholders, which suggested positive progress in retail margins, AWS, and ad revenue — areas that are all "top stock drivers" for the company.

"We expect a 1Q beat, and while 2Q set up has some unusual q/q hurdles, we expect positive 1Q metrics and call commentary to be constructive & consistent with the recent Shareholder Letter," the note said.

BofA analysts reiterated their "Buy" rating and $204 price target for the stock, implying a 13% upside from its current levels.

Amazon's consensus first-quarter net sales estimate is $142.59 billion

Net sales estimate: $142.59 billion

Online stores net sales estimate: $54.77 billion

Physical Stores net sales estimate: $5.08 billion

Third-Party Seller Services net sales estimate: $34.63 billion

Subscription Services net sales estimate: $10.83 billion

AWS net sales estimate: $24.11 billion

North America net sales estimate: $85.55 billion

International net sales estimate: $32.47 billion

Third-party seller services net sales excluding F/X estimate: +15.8%

Subscription services net sales excluding F/X estimate: +12.1%

Amazon Web Services net sales excluding F/X estimate: +14.5%

EPS estimate: 82c

Operating income estimate: $10.95 billion

Operating margin estimate: 7.63%

North America operating margin estimate: +4.92%

International operating margin estimate: -1.85%

Fulfillment expense estimate: $22.4 billion

Seller unit mix estimate: 59.4%

Net sales estimate: $150.21 billion

Operating income estimate: $12.54 billion

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