We recently published a list of 7 Best Space Exploration Stocks to Invest In. In this article, we are going to take a look at where Virgin Galactic Holdings, Inc. (NYSE:SPCE) stands against other best space exploration stocks to invest in.
The space industry is growing faster than ever and is approaching the next frontier. The U.S. space economy is at the center of this advancement. The space industry is driving significant technological progress that is playing a major role in industries such as telecommunications, defense, energy exploration, bioscience, and manufacturing. Moreover, the robotic exploration missions have increased, accelerating the space activity. This growing space economy creates opportunities to invest in space stocks.
According to a report by McKinsey, the global space economy is expected to reach $1.8 trillion by 2035, up from nearly $630 billion in 2023. The key drivers for the growth of the space economy would be satellites, launchers, and telecommunication devices. For instance, Uber relies on satellite signals and provides GPS directions to drivers and riders.
The growing demand for positioning and navigation services on smartphones and the increased demand for monitoring and data collection powered by AI will be key for the space economy. According to Research and Markets, the global AI in space exploration market was valued at $3.4 billion in 2023. This market is expected to reach $14.25 billion in 2028, growing at a CAGR of 33.19%.
President Trump created the Space Force in his first tenure, creating history by passing a $728 billion defense bill. In his second tenure, the policy for the space economy is relatively unclear as the tariff agenda remains a priority.
Recently, the Chief of Space Operations, Gen. Chance Saltzman, told Defense One that the Space Force remains in a good spot.
“I think in the end, what you’ll see is that because our priorities were so focused on warfighting, so focused on the new emerging threats, that everybody is kind of coming to the realization that we have to address, that we were pretty well aligned with the new administration’s priorities, and so I think the Space Force is going to be in a good spot,” Saltzman said.
Late in 2024, the Pentagon announced to increase its spending for proliferated low Earth orbit (pLEO) satellite services from $900 million to a whopping $13 billion through 2028. This will create opportunities for both private and public contractors of the Pentagon.
We used financial media reports to shortlist companies engaged in the space exploration business. We then looked for space exploration stocks widely held by hedge funds. Data for the number of hedge fund investors for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 7 best space exploration stocks to buy were ranked in ascending order based on the number of hedge funds holding stakes in them.
