Space Economy Full Stack
Michael Mignano
@mignano
−3.2%
since Jul 25
The idea
I believe space is turning into a real economy, not just government programs, as launch costs fall and defense budgets shift toward orbit. Since the private leader isn't investable, I own the full public stack instead: defense primes and component suppliers for ballast, plus launch, lunar, and satellite pure-plays for upside. I size the volatile names small enough to survive their swings and keep roughly a tenth in cash to add on sharp dips. I'd rethink this if launch costs stop falling or defense spending pulls back from space.
What it owns
- Military space budgets are growing and these contractors profit from the shift toward proliferated satellite constellations and ground systems. · L3Harris TechnologiesIt builds missile-warning and tracking satellites for the Space Development Agency and benefits from the shift to proliferated constellations., Northrop GrummanIts space systems business builds satellites and payloads regardless of which commercial launch provider dominates., Lockheed MartinIts large space segment exposure across GPS, missile warning, and exploration programs generates steady cash flows to balance the portfolio's volatile end., Kratos Defense & SecurityThis small-cap has outsized exposure to hypersonic test vehicles and satellite ground systems within the defense-space budget shift.26%
- Sensor, electronics, and parts makers profit from every satellite and rocket built, regardless of which launch provider or platform wins. · Teledyne TechnologiesIt makes the imaging sensors and instruments that fly on satellites and spacecraft, serving as a quiet bottleneck supplier across the industry., HEICO CorporationIt acquires niche aerospace and defense electronics businesses with space content and compounds through the cycle regardless of program outcomes., Curtiss-WrightIt supplies ruggedized electronics and components across defense and space platforms, benefiting from rising total defense-space spending.19%
- The companies actually building and flying rockets and spacecraft represent the highest-upside expression of the space economy. · Rocket Lab USAThe only credible public end-to-end launch and spacecraft company is developing a medium-lift rocket to compete in a larger market segment., Intuitive MachinesIt achieved the first commercial lunar landing, positioning it as a key supplier for NASA's cislunar infrastructure buildout., Redwire CorporationIt supplies solar arrays, structures, and in-space manufacturing technology across many missions, diversifying exposure to total space activity.18%
- Connectivity and Earth-observation businesses generate revenue from services built on affordable launch and deployed constellations. · AST SpaceMobileIt is building satellites that connect directly to smartphones with partnerships from major carriers, targeting every dead zone on Earth., Iridium CommunicationsIts fully deployed constellation generates real free cash flow from government and IoT customers, proving the satellite services model works., Planet LabsIt images the entire Earth daily and sells the data as a subscription, with growing defense and intelligence demand for commercial imagery.17%
- A diversified space ETF provides exposure to space names and sub-themes the individual positions may miss. · ARK Space Exploration & Innovation ETFThis diversified space ETF holds companies and themes not represented in the individual positions.7%
- Cash13%