Beat Jeff Bezos at His Own Game: Here's How

Written by Jason Simpkins
Posted July 23, 2021

Jeff Bezos thinks he's real hot shit, huh?

Flying off into space on his little rocket, trying to show the whole world he's over his divorce.

Sorry, am I being too harsh?

Are these attacks too personal for a guy who forces his employees to work in 114-degree heat, fires them for getting breast cancer, and demands delivery drivers to pee into Gatorade bottles?

Forgive me, then.

After all, this isn't really meant to be a personal attack...

What I really mean to show you is how this self-indulgent egomaniac is missing the very boat he claims to be captain of.

Because while Jeff Bezos is wasting time riding his own rocket, I've been working hard to find ways that the average investor can actually profit from space.

And I think you'll want to hear it, because when he's not blowing millions of dollars on an ego trip, Jeff Bezos is busy cutting checks to people like Van Jones and Jose Andres — not people like you, and certainly not his workers.

Here's the secret...

First, forget space tourism.

This is the obsession of people like Jeff Bezos, Elon Musk, and Richard Branson — that they'll charge people $250,000 to $500,000 for joy rides into the outer reaches of the earth's atmosphere.

And you know what, maybe they will. Maybe they really can find a market for that kind of thing.

Space industry consultancy Northern Sky Research believes they will. It estimates the combined market for orbital and suborbital flights will reach $3.5 billion a year in the next decade.

Of course, I'm a little more skeptical.

I don't know how many people really want to spend that much money and take that much risk for an 11-minute flight that isn't all that impressive. ("We went right on up and I saw darkness," said Wally Funk who traveled alongside Bezos. "I thought I was going to see the world, but we weren't quite high enough.")

What I do know, though, is that millions upon millions of people here on earth need phone service and internet connectivity.

For that to happen though, they first need satellites that can provide those things.

And that's what they're getting.

Some 8,500 satellites will be launched from 2019–2028, according to Euroconsult, meaning we'll see more satellite launches in the current decade than we saw in the 60-plus years prior.Euroconsult Satellites

 

Indeed, an average of 133 satellites were launched annually over that initial 63-year period. But 955 satellites were launched in 2020 alone.

In fact, in January 2021, SpaceX deployed 143 satellites on a single rocket.

With this vast increase in launch activity, there could be more than 12,000 satellites in orbit by 2028 — up from roughly 3,000 now.

So if we zoom in, the small satellite market by itself totalled a little more than $3 billion in 2019, according to Fortune Business Insights, which further estimates that market will grow to $9.75 billion by 2027.

That's a CAGR of 19%, and it's a market that figures to be three times bigger than the space tourism market these grandstanding billionaires are hyping up.

Furthermore, Morgan Stanley projects that internet space spending will blossom from nothing in 2016 to more than $400 billion in 2040. Similarly, consumer broadband satellites will approach $100 billion from their nascent beginnings, and spending on digital cable satellites will just about double from $98 billion to $181 billion in that time.

This is the real profit opportunity that the space industry offers and you don't need to be floating in some billionaire's rocket ship 62 miles up to see it.

It's plain to see from the comfort of your own couch.

And it's accessible to everyone, because I've found the perfect stock to play it.

There is a company that just listed on the Nasdaq. And after this week's market collapse it's trading for just over $9.00 per share, when just weeks ago it was worth more than $15.

Its whole business model is to launch small satellites into low-earth orbit. It aims to do it cheaply and on a massive scale, meeting the vast needs for internet service providers, cable companies, and more.

It's a much, much better business plan than floating millionaires into the atmosphere for kicks. The market itself is already magnitudes bigger, and its potential for expansion is far greater.

To be sure, it is an absolute bargain at its current price. So I highly recommend you check out my full report here. It has the complete details as well as full reports on two other space companies with huge profit potential.

Do not hesitate. Don't just roll your eyes every time another billionaire launches himself into space. Instead, join their ranks and then find something better to do with your money.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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