SpaceX is booming! Here are other space stocks to consider buying for an ISA

Our writer highlights a few investment options in the growing global space economy that might be worth considering for a Stocks and Shares ISA.

| More on:

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.


Space Exploration Technologies Corp, or SpaceX, is one of the most exciting growth companies in the world. Unfortunately, everyday investors can’t buy shares in it inside our Stocks and Shares ISA portfolios.

That’s because founder Elon Musk is keeping the business private due to its underlying mission to colonise Mars and make humans a multi-planetary species. This isn’t going to happen in the next few quarters, making the mission-driven firm unsuitable to the shorter-term investing horizons on Wall Street.

An artist’s impression of SpaceX’s Starship rockets on Mars. Source: SpaceX

Last year, SpaceX’s Falcon rockets made up more than half of the world’s 259 orbital launches. And recently, it tested its giant reusable rocket, Starship, for the seventh time. The second stage blew up, which highlights how challenging rocket science can be.

Still, its high-speed Starlink internet business now has nearly 7,000 satellites in its fast-growing constellation. The firm is aiming for 42,000, while boasting nearly 5m subscribers back on Earth. One of these is a friend of mine who recently installed a Starlink dish on his family’s camper van. It’s impressive stuff.

SpaceX’s valuation has ballooned to $350bn, making it the world’s most valuable private company. Investors can gain indirect exposure through Scottish Mortgage Investment Trust and Baillie Gifford US Growth Trust. Both now have SpaceX as their top holding.

Options to consider

According to McKinsey, the global space economy will be worth a massive $1.8trn by 2035, up from $630bn in 2023. How can investors grab a slice of this growing cosmic pie? There are a few options to consider.

One is Planet Labs, which is an Earth-imaging firm. There’s also Seraphim Space Investment Trust, a UK venture capital trust that invests in innovative start-ups that are leveraging space technology. Naturally, some of these young enterprises could fail.

Across the pond, there is space tourism firm Virgin Galactic, which was founded by Sir Richard Branson. This one is dicey as it’s currently building its next generation of spacecraft and generating no revenue. Looking ahead, it will have a hell of a job on its hands competing with SpaceX and Jeff Bezos’s Blue Origin.

Another stock is Rocket Lab. In contrast to SpaceX, this firm specialises in small satellite launches. Rocket Lab is still loss-making, which adds risk, but it is growing rapidly. In 2024, revenue is forecast to have grown 77% year on year to $434m.

More risk-averse investors might consider established defence companies that have growing space businesses. Examples include BAE Systems, Lockheed Martin, and L3Harris Technologies.

An intriguing candidate

One fascinating space stock to consider that has appeared on my radar is Intuitive Machines (NASDAQ: LUNR). This is a company with a $2.8bn market cap that makes lunar exploration and landing vehicles for NASA.

The stock is up 560% in one year!

The event that put rocket boosters under the share price happened in February when Intuitive Machines became the first private company to successfully land a spacecraft on the Moon. This achievement convinced NASA to award it a mega-contract worth up to $4.8bn to build a communications system between Earth and the Moon.

It’s worth pointing out that this is currently another loss-making business, so arguably carries higher-than-average risk. But it’s growing fast, with revenue tipped to hit $497m in 2026, up 525% from 2023.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Ben McPoland has positions in BAE Systems and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended BAE Systems and Lockheed Martin. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

With an 8% yield and a P/E below 12, Taylor Wimpey looks in deep value territory

Harvey Jones wants to make a bit of noise about Taylor Wimpey shares. The FTSE 100 stock may be volatile…

Read more »

A young Asian woman holding up her index finger
Investing Articles

Up 8% today, is this one of the FTSE 100 best growth shares to buy?

Looking for the best FTSE 100 growth shares for a winning portfolio? This soaring blue chip is worth serious consideration,…

Read more »

Investing Articles

With yields over 7%, here are two FTSE 100 dividend shares to consider in 2025

As the FTSE 100 trades near all-time highs in 2025, some of its top dividend shares still offer highly attractive…

Read more »

Investing Articles

Here’s why Coca-Cola HBC stock jumped over 9% in the FTSE 100 today

This stock was flying to a record high in the FTSE 100 today, boosted by a strong set of earnings.…

Read more »

Investing Articles

1 FTSE 100 stock an investor consider for a Stocks and Shares ISA if Cash ISAs get canned

The talk in the papers is of the Cash ISA getting axed, but the Stocks and Shares ISA seems secure.…

Read more »

Chalkboard representation of risk versus reward on a pair of scales
Investing Articles

A 5.5% dividend forecast? £2k invested in Lloyds shares could earn an investor this much by 2027

Jon Smith talks through the dividend forecast for Lloyds stock in the coming years and weighs up whether it could…

Read more »

Investing Articles

How much in savings would investors need to target a £3,000 monthly passive income?

Our writer outlines a simple recipe to earn passive income from shares. The ingredients include diligent saving, ample time and…

Read more »

Investing Articles

The average Stocks and Shares ISA turned £10k into £25k in a decade. I aim to beat that

Harvey Jones is impressed by the long-term total return on the average Stocks and Shares ISA. Yet he still reckons…

Read more »