Space Stocks - 2022 Review
Updated: Dec 30, 2022
2022 was a great year for space achievement – and a lousy one for space investment.
2022's Space advances:
Artemis returned the US to the moon after a 50-year hiatus,
James Webb Telescope sent us astonishing images and data from our universe’s origin,
Space X’s new Falcon Heavy – and sixty commercial launches, and
The first successful flight of Boeing-NASA's Starliner,
An audacious start to the Emirates space program (Mars? Really?)
Meanwhile most publicly traded Space equities tanked: *1
Nineteen of the 23 publicly traded Space Stocks that we track were down. Eleven Space Stocks traded in penny stock territory. *2 We are not sure why three of them are still listed.
Six of our Space Stocks lost 75% or more of their value. *3
An equal weight Space Stock portfolio model portfolio suffered a 46.1% loss.
Price or Capital weighted model portfolios did better (gains of 21.8% and 17.8% respectively), only because the most highly capitalized and expensive position in the portfolio outperformed just about every security in the market *4
The performance of the four Space ETFs was mixed, they outperformed market, barely. *5
Private Equity and Venture Capital markets were equally dismal:
Private equity and venture investments in the commercial space launch and travel industry totaled $1.96 billion (through 12/06) – about half of 2021’s total.
Deal traffic was also halved – 17 closings in 2022 vs. 36 in 2021.
Private Space venture valuations were rumored to soften toward the end of the year – spurring a good deal of speculation about down-rounds in the near future.
These observations may not fully reflect the private equity market’s condition. One transaction, Space X’s $1.73 billion June closing, accounts for 88% of 2022’s deal flow.
These blogs are an outgrowth of Cambyses Financial Advisor’s Space Technology and Commerce Initiative. Articles are not an endorsement of any product or producer we mention in the article. They are not an offer to buy or sell any security. Investments in Space Technology and Commerce sector companies are very risky and highly speculative. Investment opportunities in some of the companies mentioned in this article are suitable only for Qualified Investors. Consult your financial advisor for more information about these companies.
*1 2022 Space Stock Performance *2 Less than $2/share. *3 Including Astra Space (ASTR) which lost 94% of its value. *4 Northrup Grumman, 61% and 67% of Price and Capital weighted portfolios, respectively. Note that our publicly traded companies tracking sample does not include two of the most active participants in the sector, Blue Origin and Space X. Neither is publicly traded at this time.