Space Economy, which stocks to invest in to make a double-digit profit

 A few years ago, the US Space Force awarded $ 1 billion in annual procurement contracts for rocket launches to America's two largest space companies, SpaceX and United Launch Alliance , a joint venture between Boeing and Lockheed Martin .

Well, the Space Force is taking it one step further and preparing to distribute even more funds. The time has therefore come to get closer to the sector, focusing on which shares will win the resources.

The Space Force contracts

Briefly reconstructing the history of the Space Force contracts, we recall how in 2020 a contract was signed with SpaceX and United Launch Alliance for the launch of about 25 space missions from 2022 to 2027: five years of contracts for a total value of about 5.5 billions of dollars.

However, with the rapid increase of new space companies entering the market - mainly through SPAC mergers conducted during the pandemic - the Space Force now has far more potential contractors to choose from, and can tailor contract awards to suit the size and capabilities of these companies.

For many businesses this is an incredible opportunity . Small space companies such as Rocket Lab and Virgin Orbit, listed on the stock exchange in recent years and highly specialized in launching satellite payloads in kilograms, not tons, could indeed benefit. An option that Space Force is considering is in fact to assign a sort of umbrella contract - known as a "task order" - in which to define an overall amount of money that will be spent on a series of projects, and qualify multiple contractors to do offers for individual tasks.

For example, the Space Force could decide to allocate $ 5.5 billion for launches, in general, from 2028 to 2033. Then, over time, it could distribute these funds among small carriers like Rocket Lab and Virgin Orbit for the launch of small satellites at short notice, while it would turn to operators such as SpaceX and United Launch Alliance to launch large satellites (or large constellations of small satellites) according to a more defined and established timetable.

In short, in the Space Economy there would be room for both small and large companies in the sector.

Older space societies could also benefit

In addition to the new operators, it is possible that old space companies may be back in the running . In 2020, for example, Northrop was excluded from the assignment of Space Force Phase 2 launches, such as the most recent Blue Origin, with a result that effectively led to the closure of the OmegA large rocket project, produced by Northrop.

Now, if Phase 3 had been conducted like Phase 2, this would be bad news for Northrop, because OmegA is now history and the company's new Antares 330 rocket is still in development.

However, there is also the possibility that in Phase 3 the Space Force will test contractors for their ability to perform transport work in space, and this could also include refueling satellites in orbit or the use of space tugs. to move satellites from one orbit to another, in addition to launch work.

A similar evolution from the basic "launch services" paradigm could be very advantageous for a company like Northrop, which currently has two space tugs available (the MEVs) in orbit, performing space transport work for companies. commercial satellite.

By the same token, other companies may also be interested in doing similar work, such as Lockheed Martin, Momentus and Rocket Lab.

In short, in conclusion of this brief analysis, we cannot fail to underline the fact that there seems to be room for work with everyone, and that the competition between SpaceX and the United Launch Alliance and, between these two, with small operators and service companies in orbit, should make access to space increasingly cheaper, resulting in better business.

How to invest in Space Economy shares

To invest in the shares of the Space Economy , the best thing to do is certainly to rely on an online trading operator who can ensure you the best services to enter the financial markets in a convenient and effective way.

Among them, eToro is certainly one of the best online brokers around , with more than 10 million customers around the world. Its community is constantly growing thanks to the particularities of the broker that make it unique of its kind: eToro has in fact developed a social trading platform , a real social network where each user has his own public bulletin board and where to start discussions on each asset present on the platform.

In addition, each user can copy what other investors do automatically and for free, thus exploiting the greater knowledge of other traders. Not bad, right?

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