The idea of space tourism is out of this world, as is demand.
In fact, while companies aren’t ready to send consumers into space just yet, companies are already seeing big 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.
One of the top stocks seeing sizable momentum on the story is Virgin Galactic (SPCE), which is seeing big interest from analysts.
“With flight schedule visibility improving, and with scarce public investment opportunities in Space, we see a healthy demand environment for shares during the catalyst period,” Credit Suisse analyst Robert Spingarn said, as quoted by CNBC.
UBS initiated coverage with a buy rating and said the SPCE stock could rocket 50% over the next year, as space tourism becomes a potential $800 billion industry by 2030, says Forbes. UBS also sees demand outstripping supply for many years when SPCE starts its commercial operations.
Even more impressive for stocks like SPCE, Ark Investment Management said that it’s launching a space-themed ETF.
In fact, it just filed with the US SEC to launch it. Reportedly, it will invest 80% in stocks engaged in the investment theme of space exploration, and innovation, defined as ‘leading, enabling or benefiting from technologically enabled products and/or services that occur beyond the surface of the Earth,” as noted by The Street.
Since bottoming out in Sept. 2020 around $14.90, the stock is now up to $31.74. If it can now break above resistance at $33.69, it could test early 2020 highs of $37.50.
Keep an eye on it. The opportunity really is out of this world.