Space tourism may soon take another “giant leap for mankind.”
That is, if human test flights go as planned this Sunday, July 11 with Richard Branson on board. If successful, we could be looking at the beginnings of a trillion-dollar market.
“Branson will beat fellow billionaire Jeff Bezos to space, as the Amazon founder plans to launch with his own company, Blue Origin, on July 20,” reports NBC News. “Virgin Galactic said it will livestream the spaceflight. A feed will be available on Twitter, YouTube and Facebook.”
There’s also no shortage of demand.
According to analysts at Cowen, “39% of people with a net worth of more than $5 million are interested in paying at least $250,000 for a flight.” In addition, by 2040, Morgan Stanley believes the space tourism industry could be worth about $1 trillion.
In addition, Virgin Galactic already has 600 customers ready to blast off at $250,000 a ticket. All for a 90-minute trip that will take them about 60 miles above the Earth.
Plus, if we see success, we could be looking at a multi-trillion-dollar industry.
As reported by CBS, “Morgan Stanley says that by 2040, the market for space-related products and services will reach $1.1 trillion — an estimate that jibes with forecasts from Goldman Sachs and Bank of America. The U.S. Chamber of Commerce is even more bullish, last fall projecting what it calls the space economy to reach $1.5 trillion within the next two decades.
While investors can always buy shares of Virgin Galactic (SPCE), another top bet is the Ark Space Exploration ETF, which trades under the ticker ARKX. It includes companies “leading, enabling, or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth,” according to a filing with the US SEC.