Investing in space stocks is a high-risk, high-reward strategy. In the last two decades, rapid advances in technology have attracted investments from private companies, providing investors with exposure to a sector once dominated by legacy government organizations. A Morgan Stanley (MS) report states that the global space industry could surpass $1 trillion by 2040, offering investors the opportunity to benefit from game-changing returns over time.
One company operating in the space tourism segment is Virgin Galactic (SPCE). Valued at $572 million by market cap, Virgin Galactic stock is down 97% from all-time highs. Founded by Richard Branson, Virgin Galactic has trailed the broader markets by a wide margin in the last five years, as its attempts to begin commercial space tourism services have been delayed several times. Moreover, each space flight would cost an individual $600,000, making it an extremely niche market.
