Making the Case for Space: 4 Small Stocks That Are Packing a Big Punch

- Navigating the final frontier: Small-cap space stocks offer explosive growth potential as the space economy expands.

- From satellites to space-based internet: Discover the small companies leading the charge in the space revolution.

- Space ETFs, small caps, and the future of innovation: Why these four under-the-radar stocks deserve attention.

Background: The Growing Space Economy

Over the past decade, the space industry has evolved from a government-dominated arena into a thriving private sector brimming with opportunity. In 2022, the global space economy surpassed $469 billion, and analysts expect it to soar past $1 trillion by 2040. This explosive growth is driven by advances in satellite technology, space exploration, and emerging industries like space tourism and orbital infrastructure.

Small-cap companies, often overlooked in favor of larger players, are spearheading much of this innovation. These nimble companies are carving out their own niches in areas such as satellite communications, lunar exploration, and in-space services. While they carry more risk, their potential for rapid growth makes them attractive to investors seeking exposure to the space industry.

Investors can get diversified exposure to these small and mid-sized space companies through the NASDAQ: UFO ETF, which focuses on space-related businesses, or through NYSE: IWM, the Russell 2000 ETF which tracks a broader range of small-cap stocks, many of which are at the forefront of this space revolution. For those looking to invest in the next frontier of technology and exploration, small-cap space stocks represent an opportunity to capture the future growth of the space economy while taking calculated risks in this high-potential sector.

This Tiny Healthcare Stock With $35M Market Cap Became a Major Player Overnight in Rapidly Growing $1 Billion+ Blood Clot Market

1. Spire Global (SPIR)  [Follow SPIR on StockTwits]

Background:

Spire Global is a satellite data company specializing in gathering global data from space to provide insights for weather forecasting, ship tracking, aircraft monitoring, and more. Founded in 2012, Spire has positioned itself as a leader in small-satellite data analytics, operating one of the world’s largest fleets of low Earth orbit (LEO) satellites. Spire’s data services are critical for industries like maritime, aviation, and defense.

Recent News:

In early 2024, Spire announced a significant partnership with NASA, where its satellites will be used for data collection in support of the agency’s Earth observation missions. Additionally, the company’s continued expansion into the maritime and aviation markets shows its growing importance as a data provider. Spire is working with several major organizations to enhance climate monitoring and commercial weather forecasting capabilities.

Performance: 

Spire Global’s stock performance has been volatile over the past few months, reflecting both the challenges and opportunities within the small satellite data industry. Over the past three months, SPIR has seen a modest decline, shedding around 11% due to broader market headwinds. 

Investment Thesis:

Spire offers a unique opportunity for investors seeking exposure to the data economy from space. Its LEO satellite network is well-established, with diverse revenue streams coming from government contracts, weather forecasting, and logistics. Although its small-cap status makes it volatile, Spire’s long-term growth potential remains promising as industries become increasingly reliant on real-time, space-based data. 

2. AST SpaceMobile (ASTS) [Follow ASTS on StockTwits]

Background:

AST SpaceMobile is working to build the first space-based cellular broadband network, allowing standard mobile phones to connect directly to satellites in orbit. This groundbreaking technology could provide internet connectivity to the 50% of the world’s population currently without reliable service. Founded in 2017, AST SpaceMobile has captured the imagination of investors with its ambitious plans to revolutionize global telecommunications.

Recent News:

In early 2024, AST SpaceMobile successfully completed the first-ever direct voice call from a regular smartphone to a satellite. This technological milestone sent the stock soaring, proving the company’s technology is not just theoretical. Furthermore, AST is working closely with major telecom players like Vodafone and AT&T to bring its service to market over the coming years.

Performance: 

AST SpaceMobile made headlines not only for its groundbreaking technology but also for its exceptional stock performance. In a rare feat, ASTS skyrocketed from a small-cap stock to briefly entering large-cap territory, skipping over mid-cap status entirely when its stock hit $38. This surge occurred over a few short months, highlighting the company’s potential and the market’s excitement around its space-based cellular network. Despite some pullback, ASTS is still up a whopping 518% in the past three months and maintains significant year-over-year gains (+773%), reflecting its unique position in the telecommunications market.

Investment Thesis:

AST SpaceMobile presents a high-risk, high-reward investment opportunity. While still in the developmental phase, the company’s successful technological demonstrations and partnerships with major telecom companies offer significant upside potential. If ASTS can scale its network, it could become a disruptive force in the $1.3 trillion global telecom industry, offering exposure to a technology that could connect billions of people to the internet for the first time.

3. Intuitive Machines (LUNR) [Follow LUNR on StockTwits]

Background:

Intuitive Machines is a space exploration company with a focus on lunar missions and space systems. The company was founded in 2013 with the goal of helping NASA return to the Moon. LUNR provides lunar landers and spacecraft, working closely with NASA and commercial partners to transport payloads and materials to the lunar surface.

Recent News:

Intuitive Machines gained attention in early 2024 when NASA awarded the company a series of new contracts to support the Artemis program, which aims to establish a sustainable presence on the Moon. LUNR's innovative lander, Nova-C, is scheduled to make multiple missions to the Moon in the coming years, further solidifying its position in the growing lunar economy.

Performance:

Intuitive Machines has shown significant growth in stock price over the past month, up around 15%, primarily driven by excitement around its lunar missions and increasing contracts with NASA. The past three months have been more mixed, with the stock dipping by roughly 5% as the market digested earlier gains. Nonetheless, investor enthusiasm remains high as the company continues to advance its lunar infrastructure projects, signaling long-term potential in the rapidly expanding lunar economy.

Investment Thesis:

With its focus on lunar infrastructure, Intuitive Machines is positioned to benefit from the increasing interest in Moon exploration. The company is a key player in NASA’s Artemis program, and as the space agency ramps up its lunar missions, LUNR is well-placed to secure additional contracts. For investors, this company offers exposure to a burgeoning area of the space economy that could expand rapidly as lunar exploration and infrastructure develop.

4. Momentus (MNTS) [Follow MNTS on StockTwits]

Background:

Momentus is a space transportation company focused on providing in-space infrastructure and services, including satellite delivery and orbital transfer vehicles. Founded in 2017, Momentus aims to bridge the gap between satellites launched into space and their final orbital destinations, offering vital services to satellite operators looking to optimize their satellite deployments.

Recent News:

In early 2024, Momentus made headlines by successfully launching its latest Vigoride spacecraft, a tug that helps satellites reach their final orbits after being launched by a rocket. This development strengthens the company’s position as a critical player in the in-space transportation niche. Additionally, Momentus has inked deals with several commercial satellite operators, further expanding its customer base.

Performance:

Looking at the company’s six-month performance, MNTS has managed a 77% increase, buoyed by successful launches and an expanding client base. While the stock remains volatile, investors are keeping a close eye on the company’s ability to scale and meet growing demand for satellite repositioning and delivery services.

Investment Thesis:

Momentus is addressing a critical gap in the space infrastructure market by focusing on satellite repositioning and delivery services. As satellite launches continue to increase, Momentus’ services will become increasingly essential. With successful spacecraft launches under its belt and a growing list of clients, MNTS is an attractive play on the space transportation market's future expansion.

Conclusion: Big Potential in Small Stocks

The space sector continues to expand at a rapid pace, with small-cap companies like Spire Global, AST SpaceMobile, Intuitive Machines, and Momentus at the forefront of innovation. As space exploration, satellite technology, and space-based services become increasingly essential to the global economy, these companies offer significant upside potential for investors. 

Investors looking to gain exposure to the space industry without the price tag of major players like Lockheed Martin or Boeing can explore these dynamic smaller companies who may one day belong to one of these larger companies. With the right mix of patience and risk tolerance, these small caps could deliver outsize returns in the years ahead.

This Tiny Healthcare Stock With $35M Market Cap Became a Major Player Overnight in Rapidly Growing $1 Billion+ Blood Clot Market

This author or the principals of WVC do not hold any of the stocks mentioned in this article. 

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This article is from an unpaid external contributor. It does not represent Stocktwits reporting or views and has not been edited for content or accuracy.

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