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Minting New Millionaires — A 5G Space Race for the Ages

Written by Sean McCloskey
Posted December 18, 2020

When deep space exploration ramps up, it will be corporations that name everything. The IBM Stellar Sphere. The Philip Morris Galaxy. Planet Starbucks.

— Jack from Fight Club

Moneymaking insights can be found in the strangest places.

And while I doubt a "Phillips Morris Galaxy" will ever come to fruition, maybe there could be a Planet SpaceX one day.

Folks will say we used to call it Mars… I can just picture it now.

Elon Musk Jr. tearing along a dusty highway in a vintage Model S on his way to to Mars-a-Lago, a scenic new resort that just opened up on the Red Planet. There he plays the back nine at Olympus Mons and then spends the evening sipping drinks with friends as they take in the picturesque Martian sunset.

All right, maybe this is a little far-fetched, but the truth is the commercialization of space is already starting.

Recent advancements in space technology have made things like manned missions to Mars, mining the moon, Space Force, and many other wild ideas straight out of science fiction seem like real possibilities.

But one day soon they will be our reality, and this opens up some intriguing chances at becoming some of the first people to ever cash in on this new age of space exploration.

It Starts With Lightning-Fast Global Communications

Our technological future hinges upon a convergence of numerous technologies, not one singular breakthrough.

5G is one of the pillars of this new technological age.

But nearly half the world’s population is still offline.

The need for better connectivity, broader-ranging networks, and infrastructure that can carry more data-packed signals with almost no latency will be the backbone of all new technologies moving forward. 

Fortunately, when there’s a need, technology often finds a way… Along with these solutions will come amazing profits for early movers too.

The push toward total global connectivity powered by the 5G wireless revolution may be the biggest reason we’re racing back into space.

Which is why some of the richest, most powerful people in the world, from Jeff Bezos and Elon Musk to Richard Branson and Paul Allen (co-founder of Microsoft), are investing billions in the race to own space.

Starlink: A Product of the 5G Revolution

Commercialized space travel will soon be cheaper than we ever thought possible.

Currently, it costs $62 million to launch one of SpaceX’s Falcon 9 rockets. But according to Elon Musk, his newest Starship would be able to run missions at $2 million a piece. As far as a timeline, SpaceX President Gwynne Shotwell previously stated Starship could be operational by sometime in 2020. And while test flights were scheduled, I believe sometime in the second half of 2021 is a much more realistic timetable for a fully operational prototype.

That said...

Musk’s Starship has the potential to change how people go to space. And that means we can start building out the low-orbit 5G infrastructure.

There’s a lot at stake here.

With 5G on the brink, it’s becoming more and more obvious that the space race hinges on the creation of new, high-powered communication networks.

And right now, SpaceX is leading the way in this industry.

Last year, SpaceX received FCC approval to place 1 million tiny communications satellites into orbit as part of its Starlink satellite internet service.

Operations have since been underway and to date, Falcon 9 missions have successfully placed hundreds of new satellites into orbit.

This venture has also made SpaceX the largest satellite operator on the planet.

How to Play It

Efficient and easy (relatively speaking) space travel creates an entire new world of opportunity for us.

There will be plenty of pick-and-shovel plays that become available with companies creating the advanced systems used in these rockets.

Northrop Grumman (NYSE: NOC), for example, looks like it will be an interesting play as commercial and industrial space travel become realities.

Just a few days ago, the company announced a $3.4 billion deal to sell its federal IT and missions support services business to Peraton, a company owned by private equity firm Veritas Capital.

It’s widely believed this sale was the result of a shift toward space-based operations, research, and development. Earlier this year, the company acquired Orbital ATK. The move made Northrop a premier player in space tech. Orbital builds motors for rockets, and it's believed the acquisition of this new business segment helped Northrop win a massive contract to develop a new Ground Based Strategic Deterrent (GBSD) intercontinental ballistic missile earlier in the year.

The writing is on the wall, folks, and I’ll be tracking developments closely.

To your wealth,

Sean McCloskey
Editor, Energy and Capital

follow basic@TheRL_McCloskey on Twitter

After spending 10 years in the consumer tech reporting and educational publishing industries, Sean has since redevoted himself to one of his original passions: identifying and cashing in on the most lucrative opportunities the market has to offer. As the former managing editor of multiple investment newsletters, he's covered virtually every sector of the market, ranging from energy and tech to gold and cannabis. Over the years, Sean has offered his followers the chance to score numerous triple-digit gains, and today he continues his mission to deliver followers the best chance to score big wins on Wall Street and beyond as an editor for Energy and Capital.

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