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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.
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)
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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)
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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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