Jeff Bezos Just Launched a Massive Rocket. These Space Stocks Should Benefit.
These five names, including a new position that's 'all the buzz', are poised to benefit from the space race competition amid Blue Origin's New Glenn launch.
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After a strong move on the CPI report on Wednesday, the market is digesting gains. The Magnificent Seven MAGS names are weak, but smaller stocks are exhibiting relative strength. Semiconductors are leading due to the strong report from Taiwan Semiconductor TSM, and bonds are holding up, which is a good sign.
I’m looking for good trading themes, and news that Jeff Bezos’s Blue Origin launched its New Glenn rocket into orbit early Thursday caught my eye. The 320-foot-tall rocket is named for the first man to orbit the earth, John Glenn. This is a milestone for the company and should trigger increased competition with Elon Musk’s SpaceX.
There are a number of companies that supply both, and there is extremely strong demand for new satellites. These stocks have recently pulled back, but technically, they look good for retests of highs on continued news flow.
I added to a position in Redwire RDW Thursday, and I’m holding positions at Rocket Lab RKLB, Intuitive Machines LUNR, and AST SpaceMobile ASTS.
I am also starting a new position in Spire Global SPIR. Spire collects data from space using a large constellation of low-Earth orbit satellites. The data has weather, transportation, and many other applications. The company has partnered with Nvidia NVDA to employ AI in its operations. There is also mention of quantum computers in their operation, so they hit all three key buzzwords: space, AI, and quantum.
Spire is closing the sale of a division that will allow it to pay off all debt and is undergoing a reorganization due to some accounting issues. It is high risk, but the price action and the story are very interesting.
The space sector is ripe for continued positive news flow when Donald Trump takes office, and Elon Musk advances his agenda for a mission to Mars. I’ll be focused on this sector in the months ahead.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider a few of the names mentioned to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Rev Shark was long long SPIR, RDW, RKLB, ASTS and LUNR.
