The key to scoring huge gains in the stock market rests in identifying innovative hypergrowth companies in the top of the first inning of their growth narratives. And, with that in mind, I’d like to introduce readers to space technology pioneer Momentus — who, through a merger with blank-check company Stable Road Acquisition Corp (NASDAQ:SRAC), is on the verge of hitting the pubic markets.
Make no mistake. Buying SRAC stock today may be the best thing you ever do in the markets.
That’s because Momentus is one of the most exciting, innovative, and explosive companies in the world today, building a proprietary technology platform which will be the basis for how satellites physically move in the multi-trillion-dollar Space Economy. The company has mind-boggling upside potential. Yet, very little of that potential is priced into SRAC stock today.
Indeed, I think SRAC stock has more than 25X upside potential from here.
How do we get there?
Let’s take a deeper look.
The Emergence of the Space Economy
Ladies and gentlemen… we are finally ready to conquer the final frontier.
I’m talking, of course, about space.
Arguably one of the biggest moments in human history was when – on July 20, 1969 – Neil Armstrong became the first man to step foot on the moon.
It was a day the Earth stood still.
But, since then, public and financial interest in space has died down, as human progress in conquering and commercializing the final frontier has been ultimately limited by technological shortcomings.
Until now…
In 2020, multiple technological breakthroughs have converged to breathe life back into the space sector, headlined by companies like SpaceX and Virgin Galactic conducting multiple successful test flights and inching ever closer towards making space tourism and travel a reality.
This is just the beginning.
Over the next 10 to 20 years, continued rapid technological advancements will make flying to and from space as common and easy as flying between cities. This will give birth to a brand-new Space Economy, spanning everything from space travel and tourism, to space mining, to space colonization, to space-sourced renewable energy generation… so on and so forth.
According to Adam Jonas – the Managing Director of Equity Research at JP Morgan, and the man who presciently called the electric vehicle revolution back in 2011 – the booming Space Economy will grow by almost 400% to $1.7 TRILLION by 2040.
Needless to say, then, the emergence of the multi-trillion-dollar Space Economy represents one of the most exciting and compelling investment opportunities over the next decade.
The best way to play this revolution? By buying SRAC stock.
The Space Mobility Company
I like to think of Momentus as a space mobility company — and believe that its proprietary and breakthrough technology platform will be the technological foundation of how we move objects in space over the next several decades, implying big upside potential for SRAC stock.
Here’s the story behind the company.
You’ve probably heard of Elon Musk’s SpaceX before.
Alongside Virgin Galactic, SpaceX is at the epicenter of the Space Economy today, building big rockets which they plan to use to launch people and satellites into space over the next several years. The company is essentially creating the building blocks of the Space Economy.
After all, you cannot commercialize space unless you first put things in space. SpaceX is building the technology to do just that.
But they aren’t doing so alone…
Space infrastructure company Momentus is significantly helping them in this effort. Momentus builds what are called “transfer vehicles”. These transfer vehicles are a mission-critical component of SpaceX rockets.
To understand why, we have to first understand the space launch process, which – in its simplest form – is as follows:
- SpaceX builds a huge rocket.
- Private companies bid to put their satellites on that rocket.
- The rocket launches into space into a certain general orbital (like the Low Earth Orbit, or Geostationary Orbit).
- A transfer vehicle detaches from the general rocket, and helps guide each individual satellite into its specific orbit.
In other words, the rockets that SpaceX is building help satellites get from Earth to Space, while the transfer vehicles that Momentus is building help satellites get from Space to their specific orbital, or their final destination.
Momentus technology helps complete the satellite space journey.
Huge Technology Advantages
Perhaps more importantly, SpaceX – the leading space rocket company in the world – didn’t choose Momentus for no good reason.
No, they are partnering with Momentus because this is the leading space infrastructure company in the world.
Specifically, Momentus’ transfer vehicles are built on the back of a patented and proprietary water plasma propulsion technology platform that is the cheapest and most efficient mechanism for maneuvering in space.
This innovative propulsion platform is highly scalable (engine efficiency increases with size), throttleable (you can vary thrust to optimize trip time), safe (it’s based on water, which is as low-risk as it gets), and cost-effective (it’s built on a simple design that uses low-cost, off-the-shelf components).
The result?
Momentus’ transfer vehicles are substantially cheaper than anything on the market. They can help send small satellites into their final orbit at just $15,000 per kilogram, versus over $50,000 per kilogram for other propulsion systems.
That’s a big deal. Momentus’ breakthrough technology is essentially breaking the cost barrier of space exploration — and in so doing, is creating an economically-viable pathway for humans to colonize space.
That, of course, implies big things ahead for SRAC stock.
More Than SpaceX
As the market-leading space infrastructure company in the world, Momentus is much more than just SpaceX’s partner.
It’s a company that could very realistically emerge as a foundational technology platform for the entire Space Economy – the “picks-and-shovels” of space exploration, if you will. It’s breakthrough water propulsion platform could very realistically be the technology platform that powers movement for all objects in space.
From that perspective, the long-term potential upside in Momentus stock is enormous.
Indeed, management is targeting $4 billion in revenues and $2.5 billion in EBITDA by 2027. But the company won’t be done growing by 2027. Far from it. The Space Economy will just be getting started by then.
That’s why my modeling suggests that Momentus could net about $8 billion in revenues and $4 billion in net profits by 2030.
A simple 20X multiple on that implies a potential future valuation of $80 billion.
At the SRAC stock price today, Momentus is worth just $3 billion.
Thus, this is a company with more than 25X upside potential over the next decade.
Bottom Line on Momentus and SRAC Stock
If you’re looking for added exposure to the emerging Space Economy, you should consider taking a position in potentially explosive Momentus stock today, mostly because SRAC stock could deliver a jaw-dropping 25X return over the next 10 years as humans commercialize space.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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