Space stocks are becoming increasingly appealing to investors as broader market indices, such as the S&P 500, experience declines. This market downturn presents a unique opportunity. Savvy investors can acquire shares of space stocks at significantly reduced prices. And this could potentially lead to seven-figure opportunities.
Investing in these companies at an early stage can offer substantial returns for those willing to hold positions over the long term. The space industry is still in its nascent stages. Fortunately, many companies are poised for significant growth as the sector matures.
Although it would take a very substantial investment, high risk tolerance, a bit of luck and the right mix of fundamentals and hype, I think that there are three space stocks that could mint a new generation of millionaires overnight.
So let’s explore three space stocks for investors to buy. Don’t miss out on these potentially life-changing opportunities.
Virgin Galactic (SPCE)
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Virgin Galactic (NYSE:SPCE) focuses on commercial space tourism, offering suborbital flights for passengers. The company has successfully completed multiple crewed test flights, including the launch of its founder Richard Branson in 2021.
SPCE completed six spaceflights within six months, achieving a major milestone last year. In Q4 2023, Virgin Galactic reported a net loss of $103 million. Yet, it continues to project growth through its next-generation Delta-class spacecraft. The ship aims to provide a 12-fold increase in revenue per ship compared to the current Unity spacecraft. These ships are planned to enter ground and flight testing by 2025 and commercial service in 2026.
Hence, SPCE is figuratively and literally a shot at the moon. But I think it has all the right ingredients to make it there. It trades at only 88 cents, which are new yearly and five-yearly lows.
A lot is riding on its Delta spacecraft, but it could be the juice that takes it to the next level.
Rocket Lab USA (RKLB)
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Developing launch services and spacecraft technologies, Rocket Lab USA (NASDAQ:RKLB) plans to increase its number of launches. Further, it is developing its Neutron launch vehicle for larger payloads. Also, RKLB announced plans to introduce a range of spacecraft buses for various mission profiles. These include the original Photon bus as well as the new Lightning, Pioneer and Explorer buses.
Rocket Lab’s achievements in 2023, including its return to service and growth in its backlog of projects, position it for continued growth in 2024. Additionally, it continues to focus on financial stability. RKLB is reducing its capital expenditures following the completion of Neutron and aiming for positive EBITDA.
Like with SPCE, RKLB also trades at a steep discount. And, it’s a penny stock with its share price sliding 60.79% over the past five years. Thus, investors should be patient to allow for the bull thesis to play out.
Spire Global (SPIR)
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Spire Global (NYSE:SPIR) provides space-based data and analytics services, offering insights about Earth from a unique vantage point.
Also, SPIR is the least speculative option on this list. So, the upside may be slightly less, but there’s less speculation involved as the tradeoff.
SPIR reported strong financial performance for 2023, achieving positive cash flow from operations and solidifying its revenue growth trajectory. Q4 2023 revenue was reported at $27.7 million, contributing to a total of $105 million for the year. This marks a record-setting 10th consecutive quarter of revenue growth. It’s been driven by new customer acquisitions and increased adoption by existing clients.
For 2024, Spire Global aims to sustain this positive momentum by launching new satellite missions, expanding its space services offerings and enhancing data analytics through partnerships. Additionally, the company forecasts further growth. Especially with the new missions backlog at a record level, it includes new contracts for satellite constellation management as well.
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.
