3 Space Tourism Stocks That Could Skyrocket in Value by 2025

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In an era of rapid innovation, space tourism stocks have emerged as one of the most promising sectors this year. Historically, the government has largely funded space exploration, but the end of the space race in 1970 opened the door to the private sector. Today, private companies are actively involved in developing rockets and space shuttles to aid in space exploration. Some have even commercialized human spaceflight, or space tourism.

The space industry, while still small, is growing rapidly. According to a report by Morgan Stanley, the space sector, currently valued at $350 billion, will grow to $1 trillion by 2040. But while the outlook remains optimistic, short-term turbulence for space stocks is still very likely. The newness of the space industry, coupled with the trial-and-error development, increases the risk factor. However, investors who want to hold their stocks for the long term can benefit from fruitful gains.

With that in mind, let’s take a look at three space stocks that have the potential to deliver impressive long-term gains.

Virgin Galactic (SPCE)

Virgin Galaxy (NYSE:SPCE), founded by Richard Branson, is making big strides in space tourism. The company aims to commercialize manned spaceflight by piloting passenger flights beyond Earth’s orbit. Virgin completed its 12th suborbital spaceflight in June and is developing a new line of Delta spaceships. Each flight carries six passengers to two astronauts and costs $450,000 per ticket.

Virgin Galactic has faced turbulence since its 2019 IPO, but signs point to stronger growth in the long term. The company reported $2 million in revenue in the previous quarter, driven by commercial flights and membership fees. That was a significant increase from $0.4 million the previous year. While the company remains unprofitable, it managed to reduce its losses from the previous quarter.

Virgin Galactic is in a growth phase, but its high revenue suggests significant growth potential. The company also has a first-mover advantage in space tourism, making it one of the best space tourism stocks to bet on for long-term gains.

Rocket Laboratory (RKLB)

Space X is leading a rocket race, but Rocket lab (NASDAQ:RKL) isn’t far behind. The company, which bills itself as a “one-stop shop” for all things space, is involved in developing spacecraft and rocket launches.

Despite playing a secondary role in the rocket industry, Rocket Lab shows great long-term potential. Last month, the company completed its 50th Electron launch, achieving that milestone at an unprecedented pace. Rocket Lab plans to increase the frequency of launches, which will undoubtedly lead to higher revenues.

The company’s growth potential is evident in its financial results. In Q1, the company reported a 69% year-over-year (YoY) increase to $92.8 million. Gross profit rose to $24.2 million from $6.4 million a year earlier, while net losses narrowed by 3%. In terms of forecasts, Rocket Lab is forecasting revenue growth in the range of $105 million to $110 million.

Strong revenue growth rates and a diversified offering give investors plenty of reason to be optimistic about RKLB stock. The company is also approaching profitability and hopes to achieve its goals within the next two years. Investors willing to bet on the long-term prospects of space tourism stocks will see RKLB as a good buy.

AST SpaceMobile (ASTS)

AST SpaceMobile (NASDAQ:ASTS) is not your typical space tourism venture, but the company plans to revolutionize the telecommunications industry with a space-based satellite. AST intends to enable direct-to-cell calls using a space-based broadband satellite network.

Currently, satellite calls can only be made using specialized phones, but AST space satellites will enable the average mobile phone to send and receive calls. While this is a difficult task, the company’s ability to make this a reality will be an absolute breakthrough in improving digital communications.

It’s no wonder investors are bullish on AST’s growth potential. The company is set to launch five Bluebird satellites in August to connect unserved locations in space with terrestrial mobile carriers like Verizon and AT&T. It plans to launch as many as six satellites a month by 2025. AST also has lucrative deals with telecommunications companies.

AST’s space satellite technology is promising but still in the testing phase; ASTS stock is risky. But investors willing to weather the turbulence have the potential to achieve above-average returns over the long term.

As of the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the author’s own, subject to InvestorPlace.com Publication Guidelines.

On the date of publication of this article, the editor in charge did not hold (directly or indirectly) any interests in the securities referred to in this article.

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