Our fees are changing on 4 March 2023. Learn more.


Share

The Final Frontier For Profit

Before the last decade, the commercialisation of space seemed like science fiction. But plummeting costs have created new opportunities. Let’s launch into what has some investors thinking, ‘Houston, we have a profit’.

Since humankind first moved into orbit, economic gains have followed. Cameras small enough to fit in a mobile phone. Scratch resistant lenses. Wireless headphones. These are just a few pieces of technology developed by NASA and later commercialised by the private sector.

But over the last decade we’ve entered a new Space Age: a shift from government-driven innovation to private. Consequently, the avenues of economic growth have expanded from indirect gains through innovation to direct revenue generation. No wonder the global space economy has been valued at US$469b (2021), and Citigroup (NYSE: C) forecasts total annual revenue to reach US$1t by 2040.

Small steps to giant leaps

As private space expansion advances, the stepping stone has been data and services from private satellites. Two listed examples exploring that: Kleos Space (ASX: KSS) and BlackSky Technology (NYSE: BKSY).

Kleos Space is a Luxembourg-based, ASX-listed nanosatellite developer, manager and data provider (see Under the Spotlight AUS: Kleos Space SA (KSS) for more). Kleos started generating revenue in 2H22 by selling access to the data produced by the three clusters of four nanosatellites it has in orbit.

Meanwhile, BlackSky Technology combines satellite imagery with an AI-enabled analytics platform. Customers can monitor and analyse a number of ‘strategic sites’ via the company’s archive and real-time feeds. This service generated BlackSky US$34m in revenue during 2021 – up 61% year-on-year.

The next stage of space commercialisation is probably what you first thought of: tourism. Big money, big egos and lots of media attention there. One of the key players, Virgin Galactic (NYSE: SPCE), is expected to launch this service in Q2 2023.

Without even getting into the US$100t potential behind asteroid mining or, one day, actual interplanetary colonisation, it’s fair to say that space really is the final frontier for profit.


Don’t have Stake?

Get $10 when you fund Stake AUS, a free US stock when you fund Stake Wall St. Do both, get both!


Stake logo
Download Stake
App Store logo
Google Play logo

Stakeshop Pty Ltd is registered as an overseas company in New Zealand (NZBN: 9429047452152), and is registered as a Financial Service Provider under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 (No. FSP774414). We hold a full licence issued by the Financial Markets Authority to provide a financial advice service under the Financial Markets Conduct Act 2013. However, the content on this website has not been prepared to take into account any of your individual objectives, financial situation or needs. To the extent you require further information about the relevant New Zealand legislation that may apply, or require specific advice, please contact your legal and/or financial adviser (as appropriate). The information on our website or our mobile application is not intended to be an inducement, offer or solicitation to anyone in any jurisdiction in which Stake is not regulated or able to market its services. At Stake, we’re focused on giving you a better investing experience but we don’t take into account your personal objectives, circumstances or financial needs. Any advice is of a general nature only. As investments carry risk, before making any investment decision, please consider if it’s right for you and seek appropriate taxation and legal advice. Please view our Terms & Conditions, Privacy Policy, Financial Advice Disclosure and Disclaimers before deciding to use or invest on Stake. By using the Stake website or service in any way, you agree to our Privacy Policy and Terms & Conditions All financial products involve risk and you should ensure you understand the risks involved as certain financial products may not be suitable to everyone. Past performance of any product described on this website is not a reliable indication of future performance. Stake is a registered trademark under class 36 (New Zealand).

Copyright © 2023 Stake. All rights reserved.