Stocks ticked higher in early trading and were on track to snap a multiple-week losing streak. Before the opening bell, the major indices had all logged weekly gains. The Dow added 4.4%, the S&P 500 gained 4%, and the Nasdaq increased 4.4% over the past four sessions. A large chunk of those gains came Thursday after strong retail earnings lifted sentiment, leading to a relief rally.
Only time will tell if sentiment will remain high heading into the long weekend. However, recent signs have given some members of the analyst community reason to think we may be at or near a pivoting point. “We think there’s a good chance for some more strength here. This is sort of a classic bear market rally or bounce off the bottom,” said Troy Gayeski, chief market strategist for FS Investment.
Today we’re featuring a company from an industry set for rapid expansion that’s been hit hard in the exodus out of speculative growth stocks. Long-term-minded readers will appreciate this pure-play investment with out-of-this-world potential.
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.
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 their 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! Though 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. What Momentus does is allow 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 customers’ needs who want to move their payloads to specific orbits that aren’t accessible directly from Earth-based launches. As of Friday’s close, MNTS stock was down almost 74% from the price at which it went public via a SPAC merger in late 2020 and down 30% 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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