Rocketing out to space was previously a governmental affair, but now we see several commercial enterprises in the midst of things. Space stocks have been rallying this year after Cathie Wood’s ARK Invest started a new space exchange-traded fund (ETF).
Moreover, despite the infrastructure challenges last year, private investment reached a record high of $8.9 billion. The heightened investor enthusiasm suggests that space could become a viable sector in the long term.
Several land-based companies are looking to take advantage of the increased activity in the sector. There are numerous areas where space stocks can benefit from the expertise of other related companies.
Some of these areas include infrastructure, equipment, communications, and others. The list below includes three land-based companies which are supporting space stocks.
Companies Supporting Space Stocks: Amazon (AMZN)
In 2019, retail-giant Amazon’s founder Jeff Bezos laid down plans to develop the infrastructure for us to live in space.
Since then, he has been pumping billions of dollars in investment in his private aerospace company called Blue Origin. Apart from that, Amazon has been facilitating other space stocks in advancing their business as well.
Amazon Web Services (AWS) has been instrumental for several space companies in providing robust cloud-based services. Aerospace and defense security company Lockheed Martin (NYSE:LMT) uses AWS to integrate its ground station service with its antenna network.
Additionally, the aerospace technology company Northrop Grumman (NYSE:NOC) also uses AWS in managing its information systems on the cloud. Therefore, AMZN stock could potentially be a major secondary play in the space sector.
Space Stocks: Luna Innovations (LUNA)
Luna Innovations is a leading advanced optical technology company. It manufactures fiber optic sensing and measurement products for various industries.
It operates a high-margin business that has done incredibly well despite the pandemic’s effects. In its most recent quarter, total revenues were up 33% at $25.9 million.
Additionally, LUNA stock has become the world’s company of its kind with its acquisition of OptaSense Holdings in early December 2020.
The company has partnered with Lockheed Martin in providing it optical measurement products for its aircraft. Lockheed selected it in 2018 as an Evolutionary Technology Supplier of the year.
Since then, the relationship has gone from strength to strength, and a $6.2 million deal was signed recently among both companies. It provides an array of aerospace and defense manufacturers with its fiber-optic and testing and measurement systems.
Under Armour (UAA)
Under Armour is one of the world’s most reputable sportswear apparel and footwear company.
Once upon a time, it was one of the fastest-growing companies in the industry with significant brand equity. However, with the industry’s intense competition and a series of missteps, UAA stock has underperformed off-late.
The company has designed outfits for rocket company, Virgin Galactic (NYSE:SPCE). It has designed the spacesuits and the footwear for Virgin’s first space-flight.
The suits are made from light-grade knitted fabrics, which are of the lightest weight possible.
“Our goal was to build a suit that leaves a pilot – like any athlete – feeling confident and with zero distractions during a critical moment of performance,” said Randall Harward, vice-president of materials.
UAA stock could potentially strike deals with other rocket companies when they announce their space-flights down the road.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.