Investors are contemplating the space

Space as an investment idea is increasingly attracting the attention of investors. Morgan Stanley experts predict that the global space industry will grow from $350 billion to $1 trillion over the next 20 years.

We are talking not only about investments in the aerospace sector and defense industries, but also about industries related to the production of IT equipment and telecommunications. The market players that provide broadband satellite communications will have the greatest growth prospects in the near future. By 2040, the dynamics in this area will have amounted to 50 % to 70 % of the global space economy growth.

Wall Street experts note a rapid rise in the share price of space companies, which is associated with the development of technology, large private investments in the industry and an increase in interest from the the public sector. In the future, the value of securities of companies representing this industry will only grow, primarily due to cooperation in space exploration between the states and private players. Elon Musk's SpaceX partnership with NASA can be called the most discussed one on the planet: in May this year, the SpaceX ship launched American astronauts into the orbit.

The other well-known representatives of the space industry include Virgin Galactic, Rocket Lab, and Blue Origin. Interestingly, only one of them is currently traded on the stock exchange - Virgin Galactic, owned by billionaire Richard Branson.

In October last year, the organization merged with Social Capital Hedosophia Holdings and became the first publicly traded company that specializes in commercial space tourism. Since December 2019 and up to the start of the coronavirus pandemic, its securities were steadily rising in price, soaring by almost 365% in two and a half months.

In February this year, Virgin Galactic's share price collapsed to $9.06, repeating the crash of the entire market, but before that, at the peak, its securities were traded at $34. After experiencing a nosedive in the early spring, the share price recovered to $17.

After Michael Colglazier, the former head of Walt Disney, became the company's Chief Executive, Vertical Research analyst Darryl Genovesi confirmed his "purchase" rating for the Virgin Galactic shares and the annual target for the securities value at $29. According to the expert, the company's shares will remain attractive for the investors, because this is the only way for them to tap into space flights.

At the moment, the company has collected 600 space flight applications from 60 world countries. To book a ticket for the future flight, travelers make a deposit of $1,000 with the total travel cost amounting to $250,000.