Forget SpaceX. I've Got Something Better...
On Saturday, the Dragon spacecraft carrying SpaceX’s Inspiration4 mission splashed down safely in the Atlantic Ocean after three days in orbit.
It carried four passengers: physician assistant at St. Jude Children's Research Center (and childhood bone cancer survivor herself) Hayley Arceneaux, geoscientist and former NASA astronaut candidate Sian Proctor, Air Force veteran Chris Sembroski, and Jared Isaacman, who paid a reported $200 million for the flight.
None of which were a government-trained astronaut, a first in the history of orbital space flight.
To be sure, this was a vanity mission on par with Jeff Bezos' joyride a few months ago.
Except it went way higher.
In just three hours the crew capsule shot up more than 363 miles — higher than the International Space Station or Hubble Space Telescope, and the farthest any human has flown from Earth since NASA's Apollo moon program ended in 1972.
It also marked the debut flight of Elon Musk's new space tourism business.
That's all well and good, but to be honest, I look forward to the day when billionaires launching themselves into space isn't news.
I mean, I want to give Isaacman credit for donating $100 million to a children's hospital, but it's kind of hard when he gave twice as much to Elon Musk.
Kudos to Musk, though, for finding a way to milk other rich dudes out of cash for the privilege of getting vertigo and motion sickness.
As I've reported before, space industry consultancy Northern Sky Research estimates the combined market for orbital and suborbital flights will reach $3.5 billion a year in the next decade.
That's pretty good. But it also doesn't do much for the average investor.
SpaceX is a private company, after all. And if I were cashing $200 million checks I'd stay private, too.
But I'm also not convinced this is a sustainable business model.
How long before the novelty wears off? How long before billionaires move on to the next new flashy status symbol?
Make no mistake, that's the stage we're at now. Like, remember when having a car phone was the epitome of wealth and power? Or having a Blackberry?
And then everyone got them because they became better, more streamlined and affordable.
That's where we're at with space. This is the third billionaire we've shot into space this year. And for the third time, I kinda wish they didn't come back.
But it really won't be that long until space launches are relatively routine. They won't just be carrying people, though. And that's what I want to stress to investors.
They'll be carrying satellites — small, functional satellites that provide faster internet speeds and real time data.
It was lost in all the hubbub surrounding the civilian launch, but last week, SpaceX also launched a stack of 51 Starlink satellites into orbit. That might sound like a lot but the company actually fit 143 on a single rocket earlier this year. And all told, it's now put 1,791 Starlink satellites into orbit.
That's insane, when you consider there are only about 3,000 satellites up there.
But like the space tourism business itself, this is just the beginning.
Some 8,500 satellites will be launched from 2019–2028, according to Euroconsult, meaning we'll see more satellite launches in the current decade than we saw in the 60-plus years prior.
As a result, the small satellite market will grow to $9.75 billion by 2027, according to Fortune Business Insights — more than three times the size of the supposed space tourism market.
Furthermore, Morgan Stanley projects that internet space spending will blossom from nothing in 2016 to more than $400 billion in 2040. Similarly, consumer broadband satellites will approach $100 billion from their nascent beginnings, and spending on digital cable satellites will just about double from $98 billion to $181 billion in that time.
This is the real profit opportunity that the space industry offers and you don't need to be floating in some billionaire's rocket ship 62 miles up to see it.
It's plain to see from the comfort of your own couch.
And it's accessible to everyone, because I've found the perfect stock to play it.
There is a company that just listed on the Nasdaq. And after this week's market collapse it's trading for just over $9.00 per share, when just weeks ago it was worth more than $15.
Its whole business model is to launch small satellites into low-earth orbit. It aims to do it cheaply and on a massive scale, meeting the vast needs for internet service providers, cable companies, and more.
It's a much, much better business plan than floating millionaires into the atmosphere for kicks. The market itself is already magnitudes bigger, and its potential for expansion is far greater.
To be sure, it is an absolute bargain at its current price. So I highly recommend you check out the video on my full report here. It has the complete details as well as full reports on two other space companies with huge profit potential.
Do not hesitate. Don't just roll your eyes every time another billionaire launches himself into space. Instead, join their ranks and then find something better to do with your money.
Fight on, Jason Simpkins Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page.
Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page.
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