Virgin Galactic Holdings Inc.
Justus Parmar, CEO of Fortuna Investments, an advisory company focused on space investments, believes that Virgin Galactic Holdings Inc. (SPCE) is worth paying attention to due to its market cap of $1.06 billion and cash balance of $1.1 billion. Parmar suggests that if the company can cut costs, execute successful launches, and introduce new rocket iterations, it has the potential to surprise investors.
Parmar suggests that Virgin Galactic’s upcoming Delta spacecraft, which will have six seats and the capability to make up to eight spaceflights a month, will be a gamechanger for the company. This will significantly increase its monthly revenue from the current maximum of $2.4 million to $28.8 million.
Leshock, an expert in the field, anticipates a capital raise of $200 million to $500 million before 2026, which shouldn’t pose a problem for the company. Despite a 32.2% fall in Virgin Galactic’s stock in 2023, Parmar remains optimistic about the company’s potential.
Space Launch Capabilities
Aside from space tourism, companies providing launch capabilities will also be in the spotlight in 2024. Elon Musk’s SpaceX completed over 90 launches in 2023, while Blue Origin, founded by Jeff Bezos, recently completed the 24th flight of its New Shepard launch vehicle.
The demand for satellite constellations is soaring, with Amazon’s Project Kuiper aiming to build a constellation of 3,236 satellites for global broadband access. Project Kuiper has secured 77 heavy-lift launches from Arianespace, Blue Origin, and United Launch Alliance.
Rocket Lab USA Inc., according to Parmar, is well-positioned to benefit from the growing demand for launch capabilities. The company’s acquisition of Virgin Orbit Holdings Inc.’s aerospace production and manufacturing facility further strengthens its position. Rocket Lab is also working towards key milestones for its new Neutron rocket in 2024.
SpaceX and ULA
Parmar believes that Elon Musk’s SpaceX remains the front runner in the space industry. He predicts that Musk may consider an initial public offering (IPO) for the company in the next few years.
ULA is set for an eventful 2024, with the scheduled launch of its Vulcan rocket in January and the first crewed launch of Boeing’s Starliner spacecraft. ULA will also support the launches for the Kuiper constellation.
Positive Outlook and DoD Influence
In addition to exciting developments in the space industry, experts note positive factors emerging from Washington. The Department of Defense’s commitment to supporting the domestic space industry is expected to have a profound influence in 2024.
Investment in space startups has been significant in recent years, with some facing bankruptcy. Expert opinions suggest that we may see more bankruptcies as investment banks and venture capital firms recalibrate their strategies.
As the space industry gears up for a busy year, investors are closely watching these key players and upcoming developments.