According to a report by Space Capital, space infrastructure companies received a record-breaking $14.5 billion of private investment last year, up more than 50% from 2020. Thanks to “mega-rounds” of $250 million or more by Planet Labs, Sierra Space, and Elon Musk’s SpaceX, more than $4.3 million was added in the fourth quarter alone. But billionaires aren’t the only ones with a vested interest in intergalactic innovation.
There is a great effort from not only high-profile investors and startups to develop new space technologies but also from Governments and Aerospace & Defense giants from around the world with tremendous R&D power.
The Space Economy is a multi-billion dollar industry today, but many are expecting it to surpass $1 trillion in the coming decades, which is bringing new opportunities for investors to potentially capture this growing segment of the global economy. The Commerce Department is already throwing its support behind the American space industry with ambitious goals for regulatory reform and promotional efforts.
Space stocks have been under intense selling pressure in the recent rotation out of speculative growth investments. “Many endeavors will indeed fail, but there will be generational winners that emerge out of the rubble, ” Deutsche Bank analyst Edison Yu reminded investors in a recent note to clients. Today we’ll look at a pure-play space infrastructure stock with out-of-this-world potential.
Momentus (MNTS) is a pure-play space infrastructure company. Unlike Virgin Galactic, which is geared towards being a luxury travel provider, Momentus aspires to be a space infrastructure company for commercial endeavors. This Santa Clara, California-based company states the following as its goal for 2025:
“We aim to be able to provide a full range of infrastructure services in microgravity and deep vacuum, which will open the door to infinite manufacturing possibilities. Impossibly large next-generation structures will continue to pave new paths for even greater human development in space.”
For 2035, they talk about asteroid and moon mining! Before we get carried away, let’s focus on the here and now.
Momentus has developed what they call a space transfer vehicle. In short, it aims to offer a ride-sharing service for satellites. You see, most satellites need highly precise orbits. Booking your own launch on, say, a SpaceX Falcon 9 rocket to accomplish that precise orbit is mighty expensive. Momentus allows multiple satellites to hitch a ride on their Vigoride vehicle. In turn, that vehicle will take each satellite to its needed orbit.
Last month Momentus announced that it had signed multiple launch agreements with SpaceX for four upcoming SpaceX Transporter missions, including the Transporter-6 mission targeted for October, Transporter-7 targeted for January 2023, Transporter-8 targeted for April 2023, and Transporter-9 targeted for October 2023. These slot reservations are in addition to a launch services agreement signed in 2021 for the SpaceX Transporter-5 mission targeted for launch in June 2022. Momentus plans to fly its inaugural Vigoride demonstration flight on the upcoming SpaceX Transporter-5 mission, pending receipt of appropriate government licenses and approvals.
Momentus hopes to meet the needs of customers that want to move their payloads to specific orbits that aren’t accessible directly from Earth-based launches. As of Wednesday’s close, MNTS stock was down almost 76% from the price it went public via a SPAC merger in late 2020 and down 43% so far in 2022. Long-term-minded investors looking to go in on space infrastructure may see this as an opportune time to snap up some shares.
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