Brandon Moser/iStock Editorial via Getty Images There is currently a lot going on in the world of space. The upcoming SpaceX IPO has triggered a substantial re-rating among space stocks, but we have also seen the Blue Origin explosion a week ago. Those contrasting events show the opportunity as well as the risks regarding investment in space. As I discuss in this report, shares of the traditional ...
Brandon Moser/iStock Editorial via Getty Images There is currently a lot going on in the world of space. The upcoming SpaceX IPO has triggered a substantial re-rating among space stocks, but we have also seen the Blue Origin explosion a week ago. Those contrasting events show the opportunity as well as the risks regarding investment in space. As I discuss in this report, shares of the traditional prime contractors have underperformed even while they have space exposure. In this report, I discuss why Lockheed Martin ( LMT ) and Boeing ( BA ) have not seen strong price appreciation despite having exposure to space and launch services. While both companies have not benefited from the space boom, I believe both still provide compelling investment opportunities with a buy rating. Traditional Prime Contractors Miss Out on the Space Surge Stock price performance emerging space companies and defense prime contractors (Koyfin) The graph above clearly shows that emerging space stocks have tremendously benefited from the momentum provided by the upcoming SpaceX IPO, while traditional defense prime contractors have not joined the euphoria. In fact, only Lockheed Martin stock outperformed the market and was in positive territory. In my view, it does mark a shifting interest away from defense prime contractors towards emerging space companies. United Launch Alliance Provides a Weak Argument for Boeing and Lockheed to Join Space Rally United Launch Alliance is the launch services joint venture owned by Boeing and Lockheed Martin. The current portfolio is centered on the Atlas V and Vulcan Centaur, with the Atlas V being slated for retirement. While the joint venture can be seen as a reason why shares of Boeing and Lockheed Martin should have benefited, there are several reasons why I believe it should not. One reason is actually the lack of innovation. The Atlas V was designed for geostationary orbit missions. These days, however, more and more satellites are operating in low-Eart...
Joe Raedle/Getty Images News Michael Saylor may have signaled that Strategy ( MSTR ) is preparing to resume its bitcoin accumulation following last week's unexpected BTC sale. On Sunday, Strategy's executive chairman shared the company's bitcoin acquisition tracker on X, accompanied by the message: "A good time to add more dots." Michael Saylor X Investors have historically viewed such posts as a ...
Joe Raedle/Getty Images News Michael Saylor may have signaled that Strategy ( MSTR ) is preparing to resume its bitcoin accumulation following last week's unexpected BTC sale. On Sunday, Strategy's executive chairman shared the company's bitcoin acquisition tracker on X, accompanied by the message: "A good time to add more dots." Michael Saylor X Investors have historically viewed such posts as a hint that the company is planning another bitcoin purchase, though no official announcement has been made. Any acquisition would likely be disclosed on Monday. Strategy CEO Phong Le added to the speculation by responding to Saylor's post, reiterating the company's long-term commitment to bitcoin. "Our corporate @Strategy is to increase net Bitcoin and Bitcoin per share over time," Le wrote. "Rumors otherwise are just rumors." Shortly afterward, Saylor posted another cryptic message on X consisting only of the number "32?" — an apparent reference to Strategy's sale of 32 bitcoin last week. Michael Saylor X The comments come after Strategy raised eyebrows last week by revealing it had sold 32 bitcoin, valued at approximately $2.5M. While the amount represents only a tiny fraction of the company's more than 843,000-BTC holdings, it marked Strategy's first bitcoin sale since 2022 and prompted questions about whether the firm could become a seller after years of consistently adding to its position. Some investors speculated that additional bitcoin sales could be used to fund dividend obligations or strengthen liquidity if market conditions worsen. Those concerns intensified after bitcoin fell below $60,000 on Friday, reaching its lowest level since October 2024. Bitcoin ( BTC-USD ) traded at $62.96K at press time. Meanwhile, Strategy also drew attention from investors after regulatory filings released Friday showed planned insider stock sales totaling about $15M. CEO Phong Le disclosed plans to sell roughly $11.1M worth of shares, while CFO Andrew Kang filed to sell approximatel...
winhorse/iStock Unreleased via Getty Images Investment Thesis I assign Nintendo ( NTDOY ) ( NTDOF ) ( NTDO:CA ) a buy rating because I believe the market is currently underestimating the company's ability to both monetize and expand their current ecosystem of 129 million annual playing users. Investors have focused on the company's conservative fiscal guidance, decreasing hardware growth, and risi...
winhorse/iStock Unreleased via Getty Images Investment Thesis I assign Nintendo ( NTDOY ) ( NTDOF ) ( NTDO:CA ) a buy rating because I believe the market is currently underestimating the company's ability to both monetize and expand their current ecosystem of 129 million annual playing users. Investors have focused on the company's conservative fiscal guidance, decreasing hardware growth, and rising component costs, while management is instead focused on increasing engagement with their software, digital sales, online services, and even expanding the monetization of their broader IP. The Switch 2 has already proven its demand, nearing sales of 20 million units during its first fiscal year on the market, while the company's software momentum and continuously expanding first and third-party lineups provide additional catalysts for future earnings growth. Despite these improving fundamentals, the company continues to trade near the lower end of their five-year historical trailing twelve-month EV to EBITDA range following a significant multiple compression. In sum, I believe Nintendo currently offers an attractive risk-reward opportunity for any investor willing to look beyond near-term global headwinds and focus instead on the company's long-term strategy for ecosystem growth. Earnings Recap Nintendo reported a fiscal year that exceeded all expectations, mainly due, of course, to the sales of the Nintendo Switch 2. Revenue nearly doubled, up an impressive 98.6% YoY, to ¥2.31 trillion. The company's net profit was also up 52.1% YoY to ¥424 billion. During its first fiscal year out on the market, the Switch 2 sold an impressive 19.86 million units; this not only exceeded the company's original expectations, but the console also made history by being Nintendo's strongest and fastest-selling hardware launch in history. Consolidated Financial Highlights (Nintendo FY Ended March 2026 Financial Results Explanatory Material) Meanwhile, the company's software sales were also ex...