In this article, we discuss the 10 cheap space stocks popular on Reddit. If you want to skip our detailed analysis of these stocks, go directly to the 5 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.
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Disclosure. None. 10 Cheap Space Stocks Popular On Reddit is originally published on Insider Monkey.
