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  5. How to Invest in Space Sector in 2023

How to Invest in Space Sector in 2023

How to Invest in Space Sector in 2023

For everyone who wants to have a practical idea of how to invest in the space sector, I recommend this post. I also recommend that you look at this to better understand the entire sector globally.

But let’s start to shell out a little more about the space sector today, first the entire tech sector and especially the tiny growth caps in this recession and stock market crisis, have been greatly affected. And space companies have not been the exception.

Before continuing, remember that humanity and especially divided into two opposing blocks that compete for the best Lunar places, is fighting to establish bases on the Moon in the 2030s. We have recently witnessed the launch by NASA of the most powerhouse on the planet today the SLS. To test the Orion deep spaceship on a mission that is about to return to Earth.

The Orion the “manned” ship (although on this occasion it only carries mannequins) that has travelled the furthest from Humanity, seeing the Moon and the Earth from thousands of kilometres away.

While the other contender in this fight for the resources of the “Eighth Continent” is China and it has already announced that it hopes to land on the moon perhaps before 2030.

Let’s remember that both powers expect to land at the South Pole of the Moon, since it is where the “Islands of Light” exist, which are not very abundant land, so arriving first is a priority.

To do this, China has opted for two types of reusable rockets, one that closely resembles SpaceX’s Falcon Heavy and another that resembles the Starship that SpaceX is also developing.

But going back to the West with NASA + JAXA + ESA + CSA + KARI, etc., which are the main space agencies that have joined the US Artemis program.

Military companies in the space industry

Let’s start with the mother companies of this entire sector, the military companies with divisions in Space. These legendary companies with decades of experience have seen many of their space divisions make huge profits this year, the main exception being Boeing, which has suffered a huge loss due to delays of the Starliner manned spacecraft for the ISS.

So if you want to invest in “insurance,” buy Lockheed Martin, Boeing, Raytheon, L3Harris, Northrop Grumman, Jacobs, Leidos, Airbus, Leonardo or Thales.

Now, if you are looking for more exposure to the pure space sector, I would recommend you look at these three companies:

  • OHB SE is a German company with decades of experience in the space sector, and which is a fundamental contractor of the European agency, ESA. It is also entering the launcher market with its RFA division.
  • MAXAR is a US company that works for NASA and has the leading technology in the Earth Observation sector, and when it has its LEGION deployed in 2023, its price can rise significantly if everything goes well with them.
  • MDA is a Canadian company and major contractor for NASA and the CSA, the Canadian space agency. It is directly involved in several critical Artemis programs.

Space exploration companies

If we want to go down to the new NewSpace, and the ones just released on the market, let’s see for me the three with the best presence today and the greatest strength.

Planet Labs, the pioneer company in Earth Observation using CubeSats or small satellites, is now planning a new constellation with up-and-coming SAR technology. Although it still does not produce net benefits, it is breaking its own quarterly revenue estimates.

Rocket Lab, as we’ve seen in their recent presentation, Rocket Lab space systems and launcher company, has been delivering on all its promises since it went public. Its space systems division does not stop growing, and more and more Electron launches are gaining more competitiveness, waiting for the long-awaited semi-recoverable rocket.

Redwire Space is a company that aims to be the next great space manufacturer and to be a great contractor for NASA. With its recent acquisition of QinetiQ’s European space division, it enters another huge market that opens doors for ESA.

Revolutionary tech in space

If we go down another step, we find two very promising companies for investors.

Arqit, a space company, but also very technological because is committed to encrypted communications technology through quantum satellite communications. It is expected that in 2023 it will launch its first commercial satellite, which already has agreements with ESA. It can benefit from the recent new EU military constellation, Iris2.

AST SpaceMobile is a company that aims to revolutionize satellite communications for mobile phones, even allowing 5G connection via the satellite. It recently just deployed its first prototype satellite, and everything seems to be working great. It has just made a capital increase to raise more funds to deploy its future constellation in 2023. It is a very competitive sector where there are new players such as SpaceX’s Starlink, Globalstar and its alliance with Apple, or the rumoured Iridium and Samsung, but none with ASTS technology.

Two special cases that will greatly benefit from the recent Space Force:

  • Terran Orbital, is a leading manufacturer of small satellites, and these are expected to grow exponentially in the coming years, plus they have contracts with the SDA for the Space Force’s “Layer Tranche” constellation. That if it has cancelled its Predasar Observation constellation, it will sell these satellites to other companies.
  • Mynaric is a German company listed in the USA and is one of the leaders in laser communications between satellites, it also already has contracts with the SDA for the Space Force.

Two companies competing with Planet Labs

Satellogic is an Argentine company that is listed in the USA, and that is basically the competition of Planet Labs. At the moment, it is deploying its Observation constellation well.

BlackSky is the US competition to Planet Labs, and among its founders is the famous investor Peter Thiel. He has won major contracts with the NRO, the US spy satellite office.

More companies to consider

SatixFy is a company of chips and other space components for satellites and that has important agreements with the Mega Constellation, and Oneweb, among other clients. It has recently gone public, and it has already hit a great high. Perhaps it is time to let it deflate more so that the tooth can be inserted again.

Momentus, this company has suffered from everything since it went public, from partial failures, in its tugboats, to the forced sale of its founder for being Russian due to ITAR issues. But it’s starting to take flight with its SpaceX rocket tugs, and 2023 may be its year to start taking flight.

Sidus Space is a small NASA contractor company, and already participates in projects as important as the SLS, and future NASA space suits for the Moon, so it may be 2023 its year, when it deploys its commercial bus LizzieSat-1.

Velo3D is a very innovative 3D printing company that, for example, works with SpaceX engines and the Raptors, the most advanced in the world right now. In addition to many other aerospace companies. Its growth in income is beastly.

Spire Global is a company in the IoT market and, in addition to meteorology, working for NASA and NOAA. In addition, it is now beginning to develop a new, more capable constellation with larger satellites. At the moment, it is partially fulfilling its roadmap.

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