Thursday, June 29, 2023 marks another historic day for visiting the final frontier. Virgin Galactic (

) successfully conducted its first commercial spaceflight four and a half years after an initial sub-orbital test flight run by the company (1).

After launching a six-man crew on an up-and-down flight to the edge of space aboard the company's winged spaceplane, the company is now ready to launch further commercial operations.

Moreover, it would be difficult for the demand for tickets on one of these flights to be higher. With a backlog of over 800 passengers, Virgin Galactic began selling tickets for these flights decades ago with tickets priced at $200,000 to $250,000 per ticket even back then. After this launch, that same ticket will likely cost you upwards of $450,000 (2).

The space race is on once again as the space tourism company joins the ranks of a variety of others that have the stars in their eyes when it comes to their business model. Due to companies like Virgin Galactic, Blue Origin, and SpaceX, the final frontier’s days of being a largely unexplored vacuum are numbered.

Perhaps the most important story is that these out-of-this world operations are being conducted by private companies, rather than government-sponsored entities, such as NASA. Now, like-minded entrepreneurs can unleash the power of the free market in order to make space travel and exploration a reality.

How were we able to get to the point where we can launch private citizens into space as if they're just taking some vacation? Albeit, a very expensive one…

The answer is the same for any new frontier, whether it be exploring the vastness of space or creating the latest piece of technology, investing. Without investors to believe in what was considered a pipe dream at one point, these plans for conquering the final frontier would have never gotten off the ground.

Which brings us to an important question, what does investing in space mean exactly? Well, in this article, we will try to give you a baseline understanding of what investing in space could mean for you and your portfolio.

Simply put, it means reaching further and further into the unknown. First, it starts with tourism and sending satellites into orbit or maybe even rovers to Mars. However, after more research and development, furthered by investments like those from investors like us, the range of possibilities take on the very vastness of space itself.

Take Elon for another example. In addition to trying to make the human race and interplanetary species, Musk also thinks there are an unknown amount of valuable resources waiting to be harvested from asteroids above.

Take one “potato-shaped” asteroid that NASA sent a space probe to investigate as a way to evaluate how much it could possibly be worth.

To warn you, the number you are about to hear may sound preposterous, however, the asteroid could be worth $10… quintillion dollars (3). Rather than fill the page with zeros in order to show how large a number that is, we decided to package it in a more simple fashion.

If you were somehow able to mine the asteroid, as well as bring it back to earth and sell it, the value of that big rock would be enough to give everyone on earth roughly $1.2 billion dollars. Yes. With a “B”...

There is a catch, however. It takes millions, rather, billions of investor dollars to make this all possible. In fact, between the years 2012 and 2021, investing in the various businesses surrounding putting humans among the stars grew from $300 million to well over $10 billion (4).

Investing in space means what it does in any other industry. More possibilities. Which gets to the “why” of this investing theme.

Why Invest in Space Exploration and Travel?

As if you didn’t already have 10 quintillion reasons to invest in this expedition into space, here’s one more. This expansion into space doesn’t just mean an expansion in our knowledge and understanding of the universe, it could mean an expansion in your portfolio too.

If space exploration, travel, and tourism were to become extremely fruitful like organizations like SpaceX and Virgin Galactic think it will, the value of the space economy would rise in commensurate fashion (5).

Although it’s too early to tell just how fruitful our journey off planet will be, it’s safe to say that the possibilities are as endless as space itself. Early adopters of the leading companies are awaiting what they think could be investment opportunities that would out-do ventures in industries like artificial intelligence (AI) or robotics. Only time can tell what lies ahead for this space race.

However, like adding some higher risk investments to your portfolio for their future growth prospects, it could be worth marking some of your investment capital for the next industry that could be ready to board a rocket ship.

How Can Magnifi Help You Invest in Space?

For those who are interested in investing in the final frontier, there are plenty of options. Maybe too many, but that’s where your AI co-pilot comes into play.

Sifting through the noise online might seem like a daunting task, but with an 

 like Magnifi, you can quickly find and buy relevant stocks and funds. Here are a few space investments you may want to consider:

Here are some other common phrases investors have used to find space-themed investments:

Try these searches to take one small step for money and one giant step in your confidence for investing!

“Live updates: Virgin Galactic holds press conference after successful commercial spaceflight”, June 29, 2023, cnbc.com, 

www.cnbc.com/2023/06/29/virgin-galactic-first-commercial-spaceflight-live-stream-updates

“Virgin Galactic preps rocketplane for first commercial suborbital flight to space,” June 28, 2023, cbsnews.com, 

www.cbsnews.com/news/virgin-galactic-rocketplane-first-commercial-sub-orbital-flight-to-space/

“This Metal-Rich, Potato-Shaped Asteroid Could Be Worth $10 Quintillion,” January 4, 2023, smithsonianmag.com, 

www.smithsonianmag.com/smart-news/asteroid-16-psyche-may-be-worth-more-than-planet-earth-at-10-quintillion-in-fine-metals

“A different space race: Raising capital and accelerating growth,” November 16, 2022, mckinsey.com, 

www.mckinsey.com/industries/aerospace-and-defense/our-insights/a-different-space-race-raising-capital-and-accelerating-growth-in-space

“Investing in the Space Industry: A Beginner's Guide,” February 16, 2023, nasdaq.com, 

www.nasdaq.com/articles/investing-in-the-space-industry%3A-a-beginners-guide

The information and data are as of June 30, 2023 unless otherwise noted and subject to change. This blog is sponsored by Magnifi.

This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry, or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness, or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer or custodial services.

Investments in commodities may have greater volatility than investments in traditional securities, particularly if the instruments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Use of leveraged commodity-linked derivatives creates an opportunity for increased return but, at the same time, creates the possibility for greater loss.

Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market. They are methods used to help manage investment risk.

Mutual Funds and Exchange Traded Funds (ETF’s) are sold by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from the Fund Company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Get instant access to market data, trends, investing guidance, and on-demand analysis with Magnifi, an AI-powered investing platform.
