Today, another de-SPAC company has joined the fold. And for investors in Astra Space (NASDAQ:ASTR) and ASTR stock, it’s been a great start to trading.
Indeed, shares of ASTR stock are currently up approximately 10% at the time of writing. This highly anticipated SPAC merger has finally been completed, with shares of this rocket builder finally trading solo.
Investing isn’t necessarily rocket science. But in this case, Astra’s business model of building rockets provides investors with the opportunity to get their hands on a truly intriguing company. Astra is aiming to increase the launch rate of its 40-foot-tall rockets to daily. And the fact that Astra offers retail investors a way to directly invest in the space race is something many like.
Let’s dive into some of the details of what’s going on with this de-SPAC company right now.
ASTR Stock Rocketing Higher on Debut
Today’s debut of ASTR stock has been met with impressive investor demand. And for the reasons mentioned earlier, this makes sense.
However, Astra is a company with intriguing potential to be profitable, in a sector which has proven to be a difficult one from this perspective. CEO Chris Kemp has stated the company’s focus is on gaining efficiencies. And its attempt to build cheaper, better rockets could prove to be a win for shareholders, as well as humanity, over the long run.
Accordingly, it appears investors are largely viewing ASTR stock as a long-term holding right now. This merger provides Astra with approximately $500 million in new capital. The company plans to build out its production of smaller rockets, hoping to get its price point below the current $2.5 million. Additionally, the company sees opportunities to grow its spacecraft and spaceport business lines. For long-term investors bullish on space-related stocks, this is music to the ears.
As far as space-related stocks go, ASTR stock is one to keep on the radar for now. This company could see some serious buying pressure, if tailwinds persist in this space.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
