The space industry is becoming increasingly attractive to investors due to improved cost-effectiveness and growth prospects. Let's look at three key companies in this field.
Rocket Lab USA, Inc.
Rocket Lab USA, Inc. (NASDAQ: RKLB) specializes in small LEO satellite launches using Electron rockets. The company has conducted 51 launches, deploying more than 190 satellites, with only four launch failures. Rocket Lab is also working on mid-capacity Neutron rockets with a payload capacity of up to 13,000 kg, slated for 2025. In Q2 2024, the company's earnings reached $106 million, a 71% year-over-year increase. RKLB shares are up 18% year-to-date and 48% over the last three months.
Intuitive Machines, Inc.
Intuitive Machines, Inc. (NASDAQ: LUNR) focuses on lunar missions and does not engage in commercial satellite launches. In February 2024, the company conducted its first lunar mission IM-1 as part of NASA's efforts to revisit the Moon. Partnering with Boeing, AVL, Northrop Grumman, and Michelin, Intuitive Machines is developing the Moon RACER rover for lunar surface exploration. NASA has allocated $116.9 million to the company for deploying scientific instruments to the Moon's South Pole by 2027. LUNR shares are volatile, currently trading at $4.97.
Virgin Galactic Holdings, Inc.
Virgin Galactic Holdings, Inc. (NASDAQ: SPCE), founded by Richard Branson, focuses on space tourism. In June 2023, the company successfully sent paying customers to the edge of space for the first time. Future commercial flights are expected no earlier than 2026 using new Delta class spacecraft. Currently, SPCE shares are trading at $6.69, down 86% year-to-date.
The space industry continues to attract investor attention thanks to innovations and growth prospects. Rocket Lab, Intuitive Machines, and Virgin Galactic are prominent players in this segment with different strategies and areas of focus.
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