The No. 1 Reason Space Stocks Could Skyrocket
Lately, rocket launches have captivated me.
Such as Amazon CEO Jeff Bezos launching actor William Shatner into space.
Or Tesla CEO Elon Musk landing another Falcon 9 booster.
I’m totally on board with this new era of space exploration.
I feel like my 10-year-old self again walking into the Smithsonian Air and Space Museum for the first time.
Space is exciting once again. But many investors don’t understand why it’s important.
Many believe that space travel is just a lavish endeavor for the rich.
The mainstream media focuses on billionaire Richard Branson’s trips into space. But something bigger is happening…
And I believe that space stocks will see some of the best returns in the next decade.
Tipping Points for New Tech
I’m a growth investor.
I look for investments where a new technology is growing faster than the market expects.
When this happens, it creates a tipping point, and investment dollars come flooding in.
Tipping-point events often occur in places where the cost of doing business is plummeting.
An example of this is the falling cost of lithium-ion batteries.
It’s down over 90% in the past decade.
That’s paving the way for the mass adoption of electric vehicles.
Or how the cost of sequencing a human genome has dropped dramatically.
It went from $100 million at the turn of the century to under $1,000 today.
This opened the door for companies to develop genetic therapies.
The cost of space exploration is following a similar trajectory.
Internet for Everyone
Companies like SpaceX have lowered the price of launches.
They used to cost $20,000/kg. Now they’re $2,000/kg.
The cost may drop even further to $20/kg this decade.
This is important because satellite communications enable things to connect on the ground.
It creates an internet with no dead zones and makes devices able to connect from anywhere on Earth.
Morgan Stanley estimates the space industry could make over $1 trillion in annual revenue by 2040.
Morgan Stanley thinks satellite broadband will represent 50% of revenues from space.
But I think revenue from space could be even higher.
1 Space Stock Positioned to Grow
Demand for bandwidth is increasing. Meanwhile, the cost of installing new satellites in space is falling.
Remember, when the cost of new technology drops, it opens up research that wasn’t possible before.
Think of how big the market for lithium-ion batteries will be this decade.
With prices falling, they won’t just be in cars. It’s now feasible to pair a battery with a solar installation.
No one imagined this use case when it wasn’t economically possible.
The same will apply to space. As prices drop, more use cases become apparent.
And in my new small-cap report, I’ve identified one space company positioned to grow with this new market…
Regards,
Editor, Strategic Fortunes
Morning Movers
From open till noon Eastern time.
Vivint Smart Home Inc. (NYSE: VVNT), the smart home and home security system company, is up 17% this morning on earnings news. The company had a great Q3 as it continued to add new subscribers and mitigate the effects of supply chain problems.
Matterport Inc. (Nasdaq: MTTR) operates a 3D data platform that transforms real-life spaces into immersive digital twin models. It is up 16% this morning despite having no particular news to report.
Dollar Tree Inc. (Nasdaq: DLTR), the discount retail chain, is up 14% this morning. The move came after activist investor Mantle Ridge acquired a $1.8 billion position in Dollar Tree stock with the intention of transforming the business to make it more profitable.
Vector Group Ltd. (NYSE: VGR) is a holding company that owns several tobacco brands as well as real estate firms. It is up 11% on the continued excitement from the news last week that it would spin off Douglas Elliman, one of its real estate firms, as its own publicly traded entity.
Luminar Technologies Inc. (Nasdaq: LAZR) is an autonomous vehicle sensor and long-range lidar technology company. It is up 11% today, continuing its uptrend from last week on the announcement that its lidar solution has been selected for Nvidia’s autonomous vehicle development platform.
Apollo Medical Holdings Inc. (Nasdaq: AMEH) is a technology-powered health care management company that provides medical care services. It is up 10% after the company raised its guidance for the rest of the year following its great earnings report last week.
AbCellera Biologics Inc. (Nasdaq: ABCL) operates an AI-powered drug discovery platform that searches and analyzes the database of natural immune systems to find antibodies that can be developed as drugs. It is up 9% this morning but has no real news to report.
Newegg Commerce Inc. (Nasdaq: NEGG), the tech-focused e-commerce company, is up 9% with no news to report today. This is quite common for the stock since it has been on the radar of meme stock traders.
HeadHunter Group Plc (Nasdaq: HHR) is a Russian company that operates an online recruitment platform. It is up 8% after reporting results for Q3 with both a top- and bottom-line beat driven by an accelerated online hiring transition.
Trulieve Cannabis Corp. (OTC: TCNNF) is a cannabis company that is up 8% this morning after reporting strong results for Q3 with its 15th consecutive profitable quarter.
My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.
