Space travel stocks, like Virgin Galactic (SPCE) are on the launch pad.
After dropping on earnings, SPEC appears to have caught strong support around $4.75 a share.
From here, we could have lift off on a company announcement that it completed a lengthy upgrade period for its centerpiece tourist spacecraft, with commercial service on track to begin in the second quarter of 2023, as noted by Reuters.
Also, just last month, the company restarted public ticket sales for flights. If you have the dough, the company set prices at $450,000 per person with an initial deposit of $150,000.
Pocket change for most of us, right? I wish…
If successful, the space tourism industry could be worth up to $800 billion by 2030, says UBS, as reported by Forbes. By 2040, the industry could be worth $1 trillion, added Morgan Stanley.
Plus, there’s already a good deal of pent-up demand. According to analysts at Cowen, 39% of people with a net worth of more than $5 million are already interested in paying at least $250,000 for a flight, says CNBC. Even the billionaires are jumping on the bandwagon.
While SPCE is certainly one way to trade liftoff, investors can also look to ETFs, such as the ARK Space Exploration & Innovation ETF (ARKX).
At $38, with an expense ratio of 0.75%, the ETF invests in innovations across space. While the ETF pulled back with the space tourism flop, and with the overall market, it is showing signs of life again. Better, the ARKX ETF offers exposure to stocks such as Trimble, Iridium Communications, Kratos Defense Aerovironment, Teradyne, Garmin, Alphabet, Honeywell, JD Logistics, and dozens more.