Astra Space stock (NASDAQ:ASTR) is up 40% in pre market today, currently trading at $13.30. ASTR is an American launch vehicle company based in Alameda, California. The company’s mission is to Improve life on Earth from space by creating a healthier and more connected planet. Astra is the fastest privately-funded company in history to reach space.
With over 50 launches under contract, they began delivering test payloads into low Earth orbit this weekend. LV0007 was a success, making Astra the first rocket company to reach orbit in less than 5 years. The company received congratulations from space entrepreneur Elon Musk as he tweeted “Congrats! Orbit is not easy.” LV0007 achieved its target orbit after around nine minutes, at an altitude of 500 kilometres.
The market took this achievement well as the stock opened up 17%, only to be snatched up by investors in the early hours this morning, sending it to a pre-market high of nearly $15.50, up 62% from the last closing price.
This is also good news for the sector as many investors will be drawn towards Astra and other companies such as Richard Branson’s Virgin Galactic, Rocket Lab. Elon Musk’s SpaceX is another popular name, although the company is still not publicly trade.
Richard Branson himself took a trip to space along with 5 Virgin employees in July. Similarly, Jeff Bezos also ventured out of Earth’s system this year. Is this likely to be the popular “millionaire” trip in the future? Virgin Galactic increased their ticket prices from $250,000 to $450,000 off increasing demand.
In other news, SpaceX targets January or February for the launch of the world’s largest rocket. This creates another catalyst that could fuel the sector after the new year.
We think space travel and the sector is worth snapping up as more and more news comes out. Long term, these companies will be turning over high revenue. Competition is likely to be low as these companies demand huge capital to start up. As a result, the current companies can thrive in the coming years following recent success.