In this article, we discuss the 10 cheap space stocks popular on Reddit.
Investors are eagerly exploring growth opportunities in the space sector as funding increases and the costs associated with the industry rapidly decline. According to a report on the overall space business by professional services firm Deloitte, the space market was one of the few branches of the economy not hit hard by the COVID-19 pandemic, with 41 space launches in the year 2020 only a little below the five-year average of 43. Satellite broadband, space exploration, and militarization were identified as important space sub-sectors in the report.
The explosive growth potential of the space industry is also evident from the increasing investments into the area. In 2020, investors poured more than $25 billion into space-related activities, a number that is forecast to grow at close to 16% year-on-year in 2021. As satellite launch costs decrease, commercial space programs are looking more viable as well. For example, the cost of launching a satellite has decreased from $200 million ten years ago to around $60 million presently. It is expected to go down to $5 million in the coming years.
This dramatic reduction in cost has been made possible with innovations like reusable rockets and mass production of satellites for broadband services. Companies like SpaceX, owned by billionaire Elon Musk, and Blue Origin, led by billionaire Jeff Bezos, are all set to lead this boom in the space world. However, retail investors, who favor investments in disruptive technologies, have been eagerly pouring into cheaper space stocks as it looks set to explode in value. These investors often use internet forums like Reddit to exchange stock ideas.
Some of the stocks presently popular on Reddit include Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), Cloudflare, Inc. (NYSE:NET), Apple Inc. (NASDAQ:AAPL), NIO Inc. (NYSE:NIO), ViacomCBS Inc. (NASDAQ:VIAC), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), among others. Apart from retail interest, trusted investment banks like Morgan Stanley and Bank of America are also bullish on the industry, with both estimating that the space market will be worth $1 trillion within the next decade or so.
Big space firms, some of which are still yet to debut on the market, have already fetched high valuations. SpaceX is valued at close to $74 billion while Blue Origin is reportedly worth more than $10 billion. As nations dedicate significant portions of their budgets to space, private companies invest heavily in space technology, and the commercial frenzy around space reaches fever pitch, it is worth looking at some of the best cheap space stocks the market has to offer.
Our Methodology
With this context in mind, here is our list of the 10 cheap space stocks popular on Reddit. These were ranked keeping in mind the hype around these companies on Reddit forums. All the stocks listed below are priced under $30 per share.
The analyst ratings and the basic business fundamentals of the companies are also discussed to present a more holistic overall picture and equip readers with the information they need to make more informed investment choices.
The hedge sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey. The list is compiled according to the number of hedge funds having stakes in each firm.
Why pay attention to hedge fund holdings? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Cheap Space Stocks Popular On Reddit
10. Leonardo S.p.a. (OTC:FINMY)
Number of Hedge Fund Holders: N/A
Leonardo S.p.a. (OTC:FINMY) is placed tenth on our list of 10 cheap space stocks popular on Reddit. The company makes and sells a range of electronic and security products for the space industry and operates from Italy.
On September 7, business news publication Bloomberg reported that the Italian government was considering awarding a major new cloud contract to Leonardo S.p.a. (OTC:FINMY) in partnership with a telecom firm as it sought to ramp up government data security.
Leonardo S.p.a. (OTC:FINMY) has a market cap of more than $4.6 billion and posted over €16.8 billion in revenue last year. It employs close to 50,000 people across the globe and was founded in 1948.
9. Thales S.A. (OTC:THLLY)
Number of Hedge Fund Holders: N/A
Thales S.A. (OTC:THLLY) is ranked ninth on our list of 10 cheap space stocks popular on Reddit. The firm markets mission services, support systems, and other solutions for the space industry and is headquartered in France.
In earnings results for the first quarter, posted on May 6, Thales S.A. (OTC:THLLY) reported a revenue of close to €3.9 billion, up 0.5% when compared to the revenue over the same period in the previous year. The company expects sales for the year to be in the range of €17 billion to €17.9 billion.
Thales S.A. (OTC:THLLY) has a market cap of close to $21 billion and posted over €20 billion in revenue last year. The firm was founded in 1893 and employs more than 78,000 people across the world. It has a trailing 12 months PE ratio of 20.74.
In addition to Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), Cloudflare, Inc. (NYSE:NET), Apple Inc. (NASDAQ:AAPL), NIO Inc. (NYSE:NIO), ViacomCBS Inc. (NASDAQ:VIAC), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Thales S.A. (OTC:THLLY) is one of the stocks attracting retail investor interest on Reddit.
8. Rocket Lab USA, Inc. (NASDAQ:RKLB)
Number of Hedge Fund Holders: N/A
Rocket Lab USA, Inc. (NASDAQ:RKLB) is a California-based company that makes and sells rocket launch and control systems for the space industry. It is placed eighth on our list of 10 cheap space stocks popular on Reddit.
On September 9, investment advisory Canaccord initiated coverage of Rocket Lab USA, Inc. (NASDAQ:RKLB) stock with a Buy rating and a price target of $30, underlining that the small satellite manufacturing of the firm had an extremely favorable growth outlook.
Out of the hedge funds being tracked by Insider Monkey, California-based firm Think Investments is a leading shareholder in Rocket Lab USA, Inc. (NASDAQ:RKLB) with 1.6 million shares worth more than $17 million.
Along with Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), Cloudflare, Inc. (NYSE:NET), Apple Inc. (NASDAQ:AAPL), NIO Inc. (NYSE:NIO), ViacomCBS Inc. (NASDAQ:VIAC), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG), Rocket Lab USA, Inc. (NASDAQ:RKLB) is one of the high growth stocks getting attention from Reddit users.
7. Astra Space, Inc. (NASDAQ:ASTR)
Number of Hedge Fund Holders: N/A
Astra Space, Inc. (NASDAQ:ASTR) is a California-based company that operates as a launch firm, primarily marketing satellite launch services to other companies. It is ranked seventh on our list of 10 cheap space stocks popular on Reddit.
On July 27, investment advisory Deutsche Bank initiated coverage of Astra Space, Inc. (NASDAQ:ASTR) stock with a Buy rating and a price target of $13, noting that the firm was the first pure rocket launch company to go public amid a new space race in the business world.
Out of the hedge funds being tracked by Insider Monkey, California-based firm Light Street Capital is a leading shareholder in Astra Space, Inc. (NASDAQ:ASTR) with 2.9 million shares worth more than $37 million.
Tesla, Inc. (NASDAQ:TSLA), Uber Technologies, Inc. (NYSE:UBER), Cloudflare, Inc. (NYSE:NET), Apple Inc. (NASDAQ:AAPL), NIO Inc. (NYSE:NIO), ViacomCBS Inc. (NASDAQ:VIAC), Amazon.com, Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOG) are some of the mega stocks popular on Reddit forums, alongside cheaper options like Astra Space, Inc. (NASDAQ:ASTR).
6. Spire Global, Inc. (NYSE:SPIR)
Number of Hedge Fund Holders: 9
Spire Global, Inc. (NYSE:SPIR) is placed sixth on our list of 10 cheap space stocks popular on Reddit. The company operates from Virginia and markets space-to-cloud data and analytics. It focuses on the tracking of global datasets accumulated from a nanosatellite constellation.
On August 8, investment advisory Baird initiated coverage of Spire Global, Inc. (NYSE:SPIR) stock with a Neutral rating and a price target of $8. Jeffrey Meuler, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Soroban Capital Partners is a leading shareholder in Spire Global, Inc. (NYSE:SPIR) with 2.2 million shares worth more than $22 million.
5. AST SpaceMobile, Inc. (NASDAQ:ASTS)
Number of Hedge Fund Holders: 15
AST SpaceMobile, Inc. (NASDAQ:ASTS) is ranked fifth on our list of 10 cheap space stocks popular on Reddit. The company is headquartered in Texas and operates as a communications firm providing a space-based mobile data network.
On July 12, investment advisory Barclays initiated coverage of AST SpaceMobile, Inc. (NASDAQ:ASTS) stock with an Overweight rating and a price target of $29, noting that the proposition of the firm was “unique and the addressable market very significant”.
At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $74 million in AST SpaceMobile, Inc. (NASDAQ:ASTS).
4. Maxar Technologies Inc. (NYSE:MAXR)
Number of Hedge Fund Holders: 15
Maxar Technologies Inc. (NYSE:MAXR) is a Colorado-based company that markets earth intelligence and space infrastructure solutions across the world. It is placed fourth on our list of 10 cheap space stocks popular on Reddit.
On August 30, investment advisory Barclays initiated coverage of Maxar Technologies Inc. (NYSE:MAXR) stock with an Equal Weight rating and a price target of $35. David Strauss, an analyst at the firm, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Simcoe Capital Management is a leading shareholder in Maxar Technologies Inc. (NYSE:MAXR) with 2.4 million shares worth more than $96 million.
3. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)
Number of Hedge Fund Holders: 18
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a California-based company that makes and sells space-related products and services. It is ranked third on our list of 10 cheap space stocks popular on Reddit.
On August 5, investment advisory Alembic Global upgraded Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) stock to Overweight from Neutral with a price target of $29, appreciating the second quarter earnings report of the firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm ARK Investment Management is a leading shareholder in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) with 8.3 million shares worth more than $237 million.
2. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 18
Virgin Galactic Holdings, Inc. (NYSE:SPCE) is placed second on our list of 10 cheap space stocks popular on Reddit. The firm operates as a human spaceflight and integrated aerospace company. It is headquartered in New Mexico.
On September 8, investment advisory Susquehanna maintained a Neutral rating on Virgin Galactic Holdings, Inc. (NYSE:SPCE) stock with a price target of $35, noting that the firm still had a pathway to flying a successful commercial mission in the next four weeks.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Virgin Galactic Holdings, Inc. (NYSE:SPCE) with 4.5 million shares worth more than $209 million.
1. Astronics Corporation (NASDAQ:ATRO)
Number of Hedge Fund Holders: 19
Astronics Corporation (NASDAQ:ATRO) is ranked first on our list of 10 cheap space stocks popular on Reddit. The company makes and sells several products used by the space industry across the globe and is headquartered in New York.
Astronics Corporation (NASDAQ:ATRO) has a market capitalization of over $417 million and posted more than $500 million in revenue last year. It recently won a $6 million contract for the manufacturing of a hand rinsing device that will be installed in schools.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $95 million in Astronics Corporation (NASDAQ:ATRO), up from 17 the preceding quarter worth $84 million.
You can also take a peek at 15 Dividend Stocks People Buy for Early Retirement and Analyzing Tesla, Inc. (TSLA): Future Growth Catalysts, Hedge Fund Sentiment and Analyst Ratings.
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Disclosure. None. 10 Cheap Space Stocks Popular On Reddit is originally published on Insider Monkey.
