Since Neil Armstrong took his first step on the moon, space missions have fascinated people. That fascination has grown, and now, thanks to technology and investors with deep pockets, ordinary people who aren’t trained astronauts can go into space. If you think we’re still in the early stages of space travel, you’re probably right, which makes investing in space tourism potentially lucrative for the savvy money manager.
Exploring the Potential of Investing in Space Tourism
Unfortunately, the two most prominent names in space travel—NASA and SpaceX—are unavailable for the public to invest in. Instead, you will have to consider other companies.
Remember that you can invest in individual businesses or exchange-traded funds (ETFs). Here are some of the most well-known companies to consider:
Virgin Galactic
Founded by Richard Branson of Virgin Records, Virgin Galactic seeks to enlarge the commercial space tourism industry. However, it has not been smooth sailing for this company, so the stock has taken a tumble.
If the company can right itself, it will have a lot of potential business. According to the Motley Fool, “the company has a backlog of more than 700 people willing to pay as much as $450,000 for a few minutes of weightlessness. The question of investors is whether Virgin Galactic will ever be able to give that ride and whether it can do so profitably as a business.”
Leidos Holdings
If you’d like to invest in a more stable business with a long track record of working with other secure businesses, consider Leidos Holdings. This international company “provides space-based services, including managing space missions, designing and manufacturing rocket payloads, and providing the electronics and know-how to communicate with those payloads” (Motley Fool).
Leidos Holdings works with other companies in various markets, including aviation, defense, energy, government, health, homeland, intelligence, science, space, and surface transportation.
Rocket Lab USA
Rocket Lab USA focuses on satellites, both launching them into space and developing them and the parts needed for them. This company is based in California but has manufacturing and mission centers in Virginia, New Mexico, Colorado, Maryland, Toronto, and New Zealand.
Rocket Lab USA has a variety of well-known customers, including NASA, Space Force, Canon, Tyvek, and Astro Digital. Motley Fool is impressed by this stock and says, “Space is full of risk for young companies, but Rocket Lab looks like a potential winner for investors looking to add a little space speculation to a diversified portfolio.”
However, the company has had its share of difficulties. The stock is currently trading at $5.22, down from a high of $21.34 in September 2021.
Final Thoughts
Investing in space tourism may be profitable in the future. However, it can also be risky since it’s unclear how this industry will grow as it is so young. But for the savvy investor, space tourism stocks and ETFs may soon be a valuable portfolio asset.
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