SPACE The New Frontier RKLB LUNR 10% Gain
Posted: Jul 03, 2024
- Rocket Lab ($RKLB) has been acquiring satellite manufacturing companies strategically - They are now a space prime offering end-to-end services: building, launching, and operating satellites - Launches are only a third of their revenue, with a diverse range of products - Have secured government contracts and revenue expected to grow with megaconstellations market - Rocket Lab plans to build and launch their own megaconstellations - Backlog of $2B in orders and potential for 10x return - Intuitive Machines ($LUNR) also presents an opportunity in the space sector - The US military has a history of relying on space technology for ISR, Satcom, and PNT - Legacy military space capabilities are outdated and vulnerable - US government created US Space Force and Space Development Agency (SDA) with a budget doubling from $15B to $30B - SDA plans to build a new military satellite constellation with an annual budget of $4B-$5B - SDA has awarded nearly $11B worth of contracts to build, launch, and operate 455 satellites by 2020 - SDA aims to utilize commercial capabilities for rapid procurement of cutting-edge space technology - SDA's PWSA is a constellation of 400-600 LEO satellites for missile-defense and communications - Contracts for building and launching satellites are sizeable and awarded to multiple contractors - Investing in publicly traded satellite manufacturing companies like Northrop Grumman, Lockheed Martin, and others can provide exposure to SDA opportunities, but consider execution/scaling risks and competition - SDA's goal is to deploy satellites on time to deliver resilient capabilities for warfighters and provide opportunities for the commercial space industry in the future
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