Are Space Stocks A Good Investment? The Stocks Experts Are Buying

Americans haven't been to the moon since 1972.

Why? It’s expensive. It cost the U.S. around $25 billion ($300 billion in 2025 dollars) to send the first astronauts to the moon.

Not only that, but the tech just wasn’t there - the world did not have the technology or the infrastructure a decade ago to continue sending people to the moon.

The space race has continued though, with the U.S. government and public companies spending billion on space infrastructure.

And in 2025? Space investments took off.

The reason is simple: Technology has developed to a point where countries and companies can actually do more in space.

Better tech = increased accessibility - and with the potential IPO of SpaceX around the corner, these new technological innovations are creating new opportunities for investors to profit.

Let’s take a look at some of those opportunities, why space is launching now, and everything else investors may need to know.

Before we do though - we covered this opportunity in-depth months ago in our Market Briefs Pro weekly report.

If you want to learn more about this shift and countless other investing opportunities, subscribe to Market Briefs Pro here.

Why Is The Space Economy Shifting?

Governments and companies are spending billions in order to build the next generation of space infrastructure.

That’s led to the next generation of space tech companies to see a revenue increase as the space race heats up.

Here’s how: 

• The Space Force had a budget of $29 billion in 2024. That’s an increase from $23 billion in 2023, with its main focus on space defense tech.
  
• NASA's budget increased by $10 billion in 2025 after The One Big Beautiful Bill Act passed.
  
• President Trump's Iron Dome executive order instructed the Defense Department to create a plan for defense systems in space.

For the most part, the government doesn’t build and operate its own spacecraft - it hires companies to do that.

As a result, these executive orders and new budget increases are going to companies, many of them with shares investors can buy now.

The bottom line: The space economy is growing. Spending is shifting into companies building space infrastructure for satellites, defense systems, data centers, and more.

As these businesses grow, investors may be able to profit.

Why Space Stocks Are Growing In 2025

NASA's budget had been flat for years. But it has since started growing again.

What changed? The government took its commitment to space one step further with major legislation and funding increases.

At the same time, markets are also showing an increased interest in space companies.

Firefly Aerospace (FLY) had one of the biggest IPO launches earlier this year. The company raised $868 million in a single day.

That doesn't happen unless investors believe the space economy has real potential.

Venture capitalists (VCs) also pumped a record amount of money into space startups in Q3 2025.

• VCs invested $3.5 billion in space tech startups in Q3 2025 - an all-time quarterly record.

Government spending, increased interest from investors, and record VC investment, is shifting spending on space infrastructure across three main categories:

1. Rockets - Companies getting payloads to space.
2. Satellites - Tech operating above Earth.
3. Construction - Building infrastructure in space and on the moon.

Each opportunity has its own pros and cons - let’s break down what investors need to know about each.

The Best Space Stocks To Watch In 2026

Here’s the simple reality: Getting to space is expensive.

Each SpaceX rocket launch costs an average of $62 million.

Companies are racing to reduce those costs to run sustainable rocket launch businesses and actually make money.

SpaceX is a dominant player in the space industry - but other companies are growing and beginning to compete:

Planet Labs (PL)

Planet Labs operates one of the largest satellite imaging fleets in the galaxy. It captures pictures of our planet daily.

Scientists and researchers need these pictures to monitor our planet from afar and detect changes.

The company is the premier satellite imaging company for various governments around the world - including the U.S., E.U., and NATO.

It has earned $280 million from the German government alone so far in 2025.

The opportunity: Planet Labs has launched over 450 satellites since 2013. Most of them stay in space, which reduces costs.

Only SpaceX and the U.S., China, and U.K. governments have more satellites in space than Planet Labs.

The company earned $244 million in revenue in 2024. It achieved profitability for the first time in 2025.

Rocket Lab (RKLB)

Rocket Lab is one of the fastest-growing rocket companies in the world.

The company has made 68 successful launches - second only to private space company SpaceX.

It also can launch rockets faster than most companies - It had two launches in 48 hours, creating 5 satellite constellations in 2024.

In August 2025, Rocket Lab bought defense company Geost (which makes rocket sensors) for $275 million. That acquisition diversifies the services it can provide.

The opportunity: Shares of Rocket Lab are up over 72% year-to-date as of August 2025. Government contracts and tech demand are on track to potentially lift it to profitability.

The risk: Just like Firefly, Rocket Lab isn't profitable yet. It lost $190 million in 2024.

But revenue did increase by 32% year-over-year in 2025.

Other Stocks Creating Opportunities Above Earth

In 2023, over 150 satellites were launched into space.

In 2025? Over 2,000 satalites have been launched into space, primarily from SpaceX.

Satellites have emerged as critical pieces of space infrastructure due to their observation, communication, and research capabilities.

The Iron Dome executive order mentioned earlier? Creating new satellites is a big part of where federal funding is expected to shift within the next few years.

Without satellites, things like GPS and the internet could be severely limited.

A company like AST SpaceMobile (ASTS) could be opportunities investors want to consider here.

Want to get in-depth data and actual research on these opportunities? Subscribe to Market Briefs Pro to unlock our full space opportunities report, as well as hundreds more.

There’s also some serious construction going on in space as well.

Until recently, if you wanted something in space, you had to build it here on Earth and then launch it up.

Now? Businesses are working on new tech that may make building things like data centers or moon bases in space a reality.

Robots and construction equipment have advanced enough to make some space construction possible.

How To Buy Space Stocks: A Simple Guide

Buying space stocks isn't the same as investing in other tech stocks.

Most space companies aren't profitable. That means while they have revenue, they spend more than they make.

Their stock prices swing wildly based on launch success or failure. And a single delayed contract can wipe out months of gains.

Here's what some things that actually matter when you're considering space-related stocks:

Focus On Contract Backlog, Not Current Profits

With space stocks, the backlog tells you a lot about where they’re heading.

Firefly has a $1.1 billion contract backlog. That's guaranteed future revenue - even if they're losing money today.

What to check: Look for multi-year government contracts. These provide revenue stability that most space companies need while they scale.

Government Partnerships Signal Long-Term Viability

Private space companies need lots of capital to get projects off the ground - most work directly with governments to achieve long-term goals.

Government backing means two things: validation that the technology works, and funding that won't disappear overnight.

What to check: Does the company have contracts with NASA, the Department of Defense, or international space agencies? 

Those relationships matter just as much as venture capital funding.

Launch Success Rate Is Everything For Rocket Companies

Rocket Lab has made 68 successful launches. Firefly achieved the first fully successful soft landing on the Moon.

Virgin Galactic has delayed commercial flights multiple times. Its stock price tumbled each time.

In the rocket business, failures are public and expensive. 

What to check: How many successful launches has the company completed? What's their success rate? Have they met timeline promises or constantly delayed?

Are Space ETFs A Good Investment?

Individual space stocks carry high risk because most companies aren't profitable yet.

But the rewards could also be high, due to their growth potential.

Investors looking for a passive approach to space companies may want to consider ETFs instead.

Space ETFs spread your investment across multiple companies. You get exposure to the space economy without betting everything on one company's success.

ARK Space Exploration & Innovation ETF (ARKX)

This ETF covers rocket companies and the companies building tech to help us get to space.

The fund is actively managed and focuses on companies engaged in space exploration and innovation.

Procure Space ETF (UFO)

The Procure Space ETF explores opportunities specifically for those looking to passively invest in companies building satellite tech.

It tracks the S-Network Space Index and gives investors global exposure to space companies.

The trade-off: ETFs reduce risk through diversification. But they also reduce your upside if one company takes off.

If Rocket Lab becomes the next SpaceX, owning the ETF gives you some gains. Owning Rocket Lab stock directly gives you much bigger gains (and much bigger losses if it fails).

ETFs also have yearly fees and sometimes change what’s in the fund - which gives you less control over your investment.

Can You Invest In SpaceX Stock?

No, not yet. SpaceX is a private company.

You cannot buy SpaceX stock through your brokerage account like you can with Rocket Lab or Planet Labs.

Elon Musk controls the company and owns a significant stake. Employees and venture capital investors own the rest.

As of late 2025, SpaceX announced it will be pursuing an IPO in 2026 - but nothing is guaranteed.

Your alternatives: If you want exposure to companies like SpaceX, you have two options:

1. Buy competitor stocks - Rocket Lab, Firefly, and other publicly traded rocket companies compete in the same space.
2. Buy space ETFs - Funds like ARKX and UFO hold multiple space companies, giving you broad exposure to the industry SpaceX dominates.

SpaceX is the leader in the space economy. But you can still profit from the Innovation Shift without owning SpaceX directly.

The Biggest Risks Of Investing In Space Stocks

Financial risk is the first thing investors need to consider.

Many space companies are not profitable and it could take years for them to reach profitability - if they ever do.

Space tech has grown exponentially over the last few decades - it still has a long way to go before people are living on Mars or the moon.

That means the innovations today could be overshadowed by different innovations in the future. 

We also don't know what investment could look like in space in the future.

President Trump's administration has put more emphasis into space, but future administrations may not share the same goals.

The bottom line: This is a long-term shift. 

While there's a chance space infrastructure investments could grow in the future, there is never a guarantee.

As always with investing you could lose money. And with unprofitable companies, you're betting on the future - not current earnings.

FAQ: Space Stocks To Invest In

Is investing in space stocks risky?

Investing always has risks. Space stocks can be high-risk investments because most space companies are not profitable as of 2025. 

They're spending heavily on research and development with no guarantee of success.

Revenue is growing across the industry - but one failed launch or delayed contract can send stock prices down fast.

This is a long-term play - so consider if you can handle volatility and potential losses before investing in space stocks.

Are space ETFs a good investment?

Space ETFs reduce risk by spreading your money across multiple companies. They give you exposure to the space economy without betting everything on one company.

ETFs like ARKX and UFO hold rocket companies, satellite operators, and space construction firms. If the space economy grows, these ETFs should benefit.

But ETFs also reduce your upside. If one company becomes the next SpaceX, ETF holders get smaller gains than people who owned that stock directly.

What company is #1 in space?

SpaceX is the clear leader in the space economy. The company has made over 600 launches - far more than any competitor.

But SpaceX is private. You cannot invest in it through your brokerage account, at least not yet.

Among publicly traded companies, Rocket Lab is second in the U.S. for launches and Planet Labs leads in satellite imaging.

No single public company dominates the way SpaceX does, but until it launches its IPO, it’s much more difficult for the average investor to invest in SpaceX.

Is there another company like SpaceX?

Rocket Lab is one of the closest public companies to SpaceX in terms of launch capability.

The company has made 68 successful launches as of August 2025. 

It's developing a medium-lift rocket called Neutron to compete more directly with SpaceX's capabilities.

But Rocket Lab is much smaller than SpaceX. It lost $190 million in 2024 and is still working toward profitability.

Other competitors include Firefly Aerospace (reusable rockets and moon landing capability) and Blue Origin (private, owned by Jeff Bezos).

Are space companies a good investment?

That depends on your risk tolerance and investment timeline.

Space companies have massive revenue growth potential.

Government spending on space infrastructure is increasing and technology in the space is getting better, making launches cheaper and more efficient.

But most space companies aren't profitable yet. They're burning cash while developing technology that may or may not succeed.

The Bottom Line: Space Stocks Create Long-Term Opportunities

The space economy is experiencing an Innovation Shift right now that is leading to new opportunities for investors to potentially profit.

That's creating opportunities for investors across three main categories:

• Rockets.
• Satellites. 
• Construction.

Keep in mind: Most space companies aren't profitable yet.

Revenue is growing, but this industry still has years before it is fully developed.

With that said, this is a long-term play. You're betting on the future of space infrastructure, not current earnings.

If you invest in space stocks, understand the risks, and be prepared for volatility.

The space economy may be worth over $1 trillion in the coming decades. But getting there will have its ups and downs.

Investors who understand the potential may be able to benefit as it continues to grow.

Space Stocks For 2026 - Comparing Each