Chad Anderson, industry expert in the space sector, discusses the international space race, investing in space, the space economy, Elon Musk's power in the stars, and how to participate in the space playbook.
Private companies backed by venture capital are playing a significant role in the space industry, bringing innovation and efficiency to the sector.
Investors can gain exposure to the growing space economy through satellite-related technologies and infrastructure development.
Concerns about the unchecked power of Elon Musk and SpaceX's control over satellite assets emphasize the need for increased competition in the satellite communication sector for a more balanced and secure space ecosystem.
Deep dives
The Race to the Moon and the Importance of the Lunar Outpost
The renewed interest in the moon is driven by the ultimate high ground it offers in terms of national security and the potential for resources like water ice. NASA's Artemis program aims to establish a permanent outpost on the moon's South Pole, with robotic precursor missions launching soon. Private companies backed by venture capital are playing a significant role, bringing innovation and efficiency to the space industry. Lower costs and easier access to space have stimulated investment and the emergence of new companies. The space economy is expanding, with satellites currently accounting for 90% of its value. Satellites support industries like GPS, geospatial intelligence, and satellite communications, which have generated trillions of dollars in economic value. Investors can gain exposure to the growing space economy through satellite-related technologies and infrastructure development.
The Potential of GPS and Geospatial Intelligence
GPS, powered by space technology and improved through hardware and software, serves as a playbook for creating new investment opportunities. Precise positioning enables location-based services, which have become essential to daily life and enterprise applications. Autonomous vehicles and spatial computing rely on GPS technology. Geospatial intelligence complements GPS by providing detailed maps and data overlays, crucial for mixed reality applications and spatial computing. The space-based communication sector is also rapidly evolving, as companies like SpaceX and Amazon launch massive constellations of low-Earth orbit satellites. These satellites enable global connectivity, competing directly with fiber optics and unlocking new applications in remote operations and mission-critical industries.
Private Ventures and Innovation in the Space Industry
The space industry is experiencing a surge of private venture-backed companies that are revolutionizing the sector. SpaceX, in particular, has reshaped the industry, driving down costs and enabling broader access to space. Lowering the barriers to entry has stimulated innovation and attracted billions of dollars in investment capital. The space economy has seen significant investment in satellite-related technologies, witnessing the rise of companies focusing on satellite launches, robotic missions, lunar infrastructure, and more. These private ventures are pushing the boundaries of space technology and leading the way towards future advancements and opportunities.
Relative level of consumer spending in the upcoming months
The podcast discusses the importance of the relative level of consumer spending in the coming months. While strong economic data and low inflation might suggest increased consumer spending, the episode raises concerns about potential pullbacks due to various factors such as student loan repayments and company revenues being affected. The podcast highlights the significance of monitoring consumer spending patterns alongside economic data to understand market dynamics.
Implications of SpaceX's control over satellite assets
The podcast delves into the potential risks associated with SpaceX's control over satellite assets, specifically its Starlink program. It raises concerns about the influence and unchecked power that Elon Musk holds, which could impact geopolitical dynamics. The episode discusses countries like Taiwan being hesitant to rely on Starlink for connectivity due to concerns about potential compromises. It emphasizes the need for increased competition in the satellite communication sector to mitigate risks and promote a more balanced and secure space ecosystem.
Guy, Dan and Liz Young of SoFi discuss Jerome Powell’s Jackson Hole speech and the market’s reaction (4:00). U.S. Commerce Secretary Gina Raimondo visits China (16:30). Best Buy, Lululemon, Dollar General report this week, will we glean any new insights on the consumer (21:30)? Salesforce reports after the close on Wednesday (26:00). Later, Dan sits down with Chad Anderson of Space Capital to talk about how he got into the industry (31:00), the international space race (36:00), investing in space (40:00), the space economy (44:00), Elon Musk’s unmatched power in the stars (48:00), and how to participate in the space playbook (54:00).
On The Tape is a weekly podcast with CNBC Fast Money’s Guy Adami, Dan Nathan and Danny Moses. They’re offering takes on the biggest market-moving headlines of the week, trade ideas, in-depth analysis, tips and advice. Each episode, they are joined by prominent Wall Street participants to help viewers make smarter investment decisions. Bear market, bull market, recession, inflation or deflation… we’re here to help guide your portfolio into the green. Risk Reversal brings you years of experience from former Wall Street insiders trading stocks to experts in the commodity market.
