Trading stocks with a long-term objective requires identifying lucrative opportunities. With direct access trading platforms it is easy to trade from the comfort of your home. So let’s dive into one such opportunity without further adieu.
How about investing in the space industry? Exciting times are ahead for the space business, primarily space travel. It is no longer just a fictional concept. And it isn’t something that only governmental organizations such as NASA are involved in. Private companies are developing interesting concepts that could aid in space travel and settlement.
The buzz is so great that Morgan Stanley ($MS) is estimating hypersonic travel to grow to $800 billion by 2040. Motley Fool’s Joe Tenebruso reports that Virgin Galactic ($SPCE) is the most exciting company here because it has a probability of capturing a greater share of the space travel market. Morgan Stanley analysts have given it an overweight rating, claiming its share price is worth $22, which is more than twice its current price.
Virgin Galactic’s Basket of Opportunities
According to Morgan Stanley, Virgin Galactic could use its technology and also the earnings it generates from space tourism to develop hypersonic travel, which is its greatest long-term opportunity. Hypersonic P2P travel by air is something Virgin Galactic is keen on. The knowledge gained with a space travel program can easily help in developing hypersonic vehicles. In fact, Morgan Stanley reckons that the primary goal of the major players in the space tourism field is to fund their research into hypersonic flight. They want to be the first to get there.
Morgan Stanley estimates the space tourism business by Virgin Galactic is worth $10 per share, but the hypersonic travel business can be valued at $12 or even more. The bank believes that paying for the space tourism business now could give you an entry into the crucial and potentially lucrative hypersonic flight business and thereby disrupt the airline market that is worth multi-trillion dollars!
Virgin’s spaceship Unity successfully underwent a second space test flight in December 2018. It also boasts a significant waiting list for the travel to space. Prospective travelers are required to pay £200,000 as an initial deposit to book their place among those on the list.
Blue Origin in the Mix Too
Other companies are also in the fray, most notably SpaceX and Blue Origin. Blue Origin has emerged as the biggest competitor to Virgin Galactic, particularly in the field of space travel in the sub-orbital level. But their plans are based on a conventional rocket that takes off vertically. That may require space traveling customers to undergo special training. The company is now focusing more on orbital flight. Though it plans to take passengers soon, it hasn’t yet collected any deposit for it.
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