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Post-election first test flight: How to position for 'Elon Musk' concept stocks?
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Lauren_investement joined discussion · Nov 15 17:17

Space stocks and ETFs: There's more "space" for profit "rocketing"?

Following Musk's full support for Trump in the recent elections, Musk will lead the proposed government efficiency department. SpaceX's company heavily relies on regulations, subsidies, and policies, and investors expect that space concept stocks will benefit from a more favorable new government.
What are Space concept stocks?
Space concept stocks encompass companies involved in space exploration, launch services, defense, satellite technology, and commercial offerings like satellite internet and space tourism—this rapidly growing sector benefits from rising demand for satellite services and technological innovations. With diverse revenue streams and government contracts, these companies attract investors looking for long-term opportunities.
Explore the Space Investment theme and catch the wave!!!
Some space concept stocks that you should know:
1. $Rocket Lab (RKLB.US)$: A competitor to SpaceX, went public in 2021 through a reverse merger with a special purpose acquisition company (SPAC). The company primarily offers launch services for various space and defense organizations, along with designing and manufacturing spacecraft components. As indicated by its name, Rocket Lab specializes in rockets and orbital launch vehicles. Recently, the company secured a contract with NASA's Jet Propulsion Laboratory to supply solar panels for its Collaborative Autonomous Distributed Robot Exploration (CADRE) project. In October, Rocket Lab also launched its 31st Electron rocket. This week, the company reported Q3 financial results that exceeded expectations, with revenue of $105 million, a 55% year-over-year increase, and a net loss of $51.93 million, which was better than anticipated. The company forecasts Q4 revenue to be between $125 million and $135 million, while analysts expect $122 million. Following the earnings report, Roth MKM analysts raised their price target from $7 to $25.
2. $Intuitive Machines (LUNR.US)$: Boosted by Rocket Lab’s strong earnings and recent contract wins, LUNR, a player in the space exploration sector, was quite the lively stock over the past few trading sessions. The spike and sell-off came on Thursday, with news that the moon exploration craft maker had reported impressive third-quarter results for 2024. Highlights include a $116.9 million NASA contract and a $4.82 billion data services contract. The company saw a remarkable 359% year-over-year revenue surge to $58.5 million and achieved a record cash balance of $89.6 million. With a backlog of $316.2 million, Intuitive Machines is set for growth, projecting full-year revenues between $215 million and $235 million while maintaining a strong cash position. As of late that evening, its shares were up by 5%.
3. $Destiny Tech100 (DXYZ.US)$: Elon Musk's space exploration company, SpaceX, is currently not publicly traded, whereas Destiny Tech100 is a non-diversified, closed-end management investment fund. According to the documents it provided, the fund reported a net asset value of $56 million as of the end of June, with around 38% of its holdings comprising SpaceX assets.
Apart from the above stocks, you can also look at related ETFs to diversify your portfolio. I've researched a little bit and here are four U.S. space ETFs that I think you can consider:
1. $ARK Space Exploration & Innovation ETF (ARKX.US)$: Actively managed, this ETF invests in 35-55 space exploration and innovation companies across four key themes, with a 0.75% expense ratio. It selects stocks based on fundamental and technical analysis instead of following an index.
2. $Procure Space Etf (UFO.US)$: A passive ETF that tracks the S-Network Space Index, including companies with at least 50% of revenue from the space sector, distributed across five industries. About 73% of its holdings are U.S. companies, and it has a 0.75% expense ratio.
3. $Spdr Series Trust S&P Kensho Final Frontiers Etf (ROKT.US)$: Tracks the S&P Kensho Final Frontiers Index, employing AI and quantitative methods to pick stocks in both space and deep-sea sectors. Mostly holds U.S. aerospace and defense stocks, with a few from the UK and Israel, and has a lower expense ratio of 0.45%.
4. $Ishares Trust U.S. Aerospace & Defense Etf (ITA.US)$: Focuses on major U.S. aerospace and defense stocks, performing well in geopolitical tensions. It tracks the Dow Jones U.S. Select Aerospace & Defense Index, includes top firms like Lockheed Martin and Boeing, manages about $4 billion in assets, and has an expense ratio of 0.39%.
Check out others earnings and you can earn likewise! Read more here>>
Space stocks and ETFs: There's more "space" for profit "rocketing"?
Space stocks and ETFs: There's more "space" for profit "rocketing"?
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Lauren_investement
Canadian | Finance ex-institutional trader | Trying to spread knowledge of better trading practices and make money
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