Profiting from "Elevators" to Space
Zacks Investment Research | Nov 12, 2021 12:28AM ET
The final frontier is ready to be explored and the companies involved have tremendous opportunities for profit. Over the next few decades, a trillion-dollar space economy will be formed. Investors need to educate themselves to the movers and shakers before it’s too late.
While there are literal gold mines awaiting in space, the “elevators” to get there will be the first to see growth. Advances in technology and reusable rockets have made the trip to space much easier and more affordable. This has opened the eyes of the investment community as billionaires switch their focus from earth to the stars.
Reusable Rocket Technology
Cost has been the biggest reason most space programs couldn’t get off the ground since the original Apollo missions. Governments could only spend so much in the initial stages of space exploration. But technology has now improved and there is private money coming into the industry like never before.
Reusable launch systems have changed the game. Initially, the goal was to save part of the component stages, but now we have technology that can save all of the stages and provide a fully reusable rocket. This important step saves on cost and makes the next stages of space exploration feasible.
The Elevators to Space
According to Morgan Stanley (NYSE:MS) analyst Adam Jonas, falling launch costs and easier access to space compares to elevators allowing construction of skyscrapers to take off in the early 20th century.
Before the elevator, tall buildings simply didn’t work. Jonas says “We think of reusable rockets as an elevator to low Earth orbit (LEO)”. He believes this technology will allow space opportunities to mature, which is why Morgan Stanley thinks space exploration will be the next trillion-dollar industry.
And Jonas isn’t the only bullish one on space, as Bank of America (NYSE:BAC) sees the space industry growing to $2.7 trillion in 30 years.
With all this opportunity, the smart money is starting to notice. Investors are piling in and billionaires that grew up with Star Wars and Star Trek are pioneering the exploration with their own money.
Keep reading . . .
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