Space stocks are soaring…
Over the past year, leading space stocks have delivered some of the biggest returns.
Intuitive Machines (LUNR) has rallied 211%...
AST SpaceMobile (ASTS) has surged 862%...
Rocket Lab (RKLB) is up 473%...
The list goes on and on.
Space is my favorite speculative group in the entire market for a couple reasons.
First, compared to some other “story” stocks with a lot of hype, space stocks are the real deal. It’s one of the world’s fastest-growing industries.
Today, the global market is valued at $596 billion. By 2030, Citi projects it will become a $1 trillion industry.
Previously, Citi didn’t expect the industry to reach $1 trillion until 2040. So, growth is rapidly accelerating. By 2035, McKinsey forecasts the industry will be worth $1.8 trillion.
The space economy is booming. And there’s massive growth potential.
As my colleague Stephen McBride says, we have Elon Musk’s SpaceX to thank for this:
SpaceX is singlehandedly building the space economy. Every 2.3 days in 2024, a SpaceX rocket blasted off somewhere in America.
Before SpaceX, putting a pound of cargo into orbit cost at least $30,000. Today, SpaceX routinely does it for $1,200—a 96% cost reduction!
By slashing costs, SpaceX opened the space economy for everyone. There are now over 5,000 space startups in the US alone. And most of them rely on SpaceX to send their cargo to space.
Thanks to SpaceX, the final frontier is open for business.
Second, there are many ways to play this boom with all the exciting space “subsectors.” I’m talking about satellites, space infrastructure, and much more.
For instance, ASTS aims to provide direct-to-smartphone satellite broadband services, while LUNR is focused on lunar exploration.
Planet Labs (PL) provides daily global imagery for various applications, including agriculture, defense, and urban planning.
The easiest way to tap into this megatrend is buying an ETF like the ARK Space Exploration & Innovation ETF (ARKX).
This fund invests in a basket of space stocks like RKLB, Iridium Communications (IRDM), and Kratos Defense & Security Solutions (KTOS). And the chart looks great...
Source: StockCharts
But I prefer trading the “best of breed” names.
Space is a theme I'm focusing on in Express Trader, my advisory where I share the three top trades to make each week.
Justin Spittler
Chief Trader, RiskHedge
