Space-Investor @Space-Investor: "Space Portfolio Update Week Ending..."

Australia

Edited

Space Portfolio Update Week Ending 2024-02-02 Disclosure: I am invested in the following companies referenced below – ASTS (AST SpaceMobile), AMZN (Amazon), GIB (CGI Inc), $RKLB (Rocket Lab USA Inc.), AIR.PA (Airbus), GOOGL (Alphabet), MSFT (Microsoft), NOC (Northrop Grumman), RTX (RTX Corp), GILT (Gilat), $ETL.PA (Eutelsat Communications) Past Week Returns: 🔴 This Portfolio: (1.82%) 🟢 S&P 500: 1.38% tinyurl.com/3xbk8xse 🔴 HSPAP: (0.69%) tinyurl.com/h5uymjdj Benchmark ETFs 🔴 ARKX: (1.11%) tinyurl.com/4vkwz5a4 🔴 ROKT: (1.03%) tinyurl.com/yt4avxb7 🟢 ITA: 1.30% tinyurl.com/ywxuw5hx 🔴 UFO: (2.19%) tinyurl.com/2jtkeanw 🔴 Benchmark ETF Average: (0.76%) 12 Month Returns: 🟢 This Portfolio: 19.59% 🟢 S&P 500: 19.88% Benchmark ETFs 🔴 ARKX: (0.77%) 🔴 ROKT: (0.49%) 🟢 ITA: 8.92% 🔴 UFO: (22.94%) 🔴 Benchmark ETF Average: (3.82%) 2 Year Returns: 🟢 This Portfolio: 36.16% 🟢 SpaceTech - www.etoro.com/smartportfolios/spacetech : 10.09% 🟢 S&P 500: 8.05% 🔴 Benchmark ETF Average: (3.51%) This week I added $ASTS (AST SpaceMobile Inc) to the portfolio. They are one of the companies currently developing ‘Cell Towers In Space’ – a satellite constellation that allows unmodified mobile phones to connect. Their satellites are significantly larger than any others currently in development and this allows for much higher bandwidth – up to 120 Mbps. Despite their advanced technology they are still a risky investment – it looks like they will need to raise about $350 million in additional capital (an amount similar to their current market cap) to fund sufficient satellites to reach profitability, so I’m expecting further dilution events. I expect this will be one of our more volatile investments for the foreseeable future, we’re in for quite a few ups and downs on the path to profitability but I believe the risk/reward on offer makes an investment worthwhile now. Only 10 of our 30 holdings had gains this week. 🟢 $AMZN (Amazon.com Inc) was up 7.98%. They released their Q4 results and YoY Net Sales were up 13.9%, Operating Income was up 382.6% and Net Income was up 3,721.6% leading to Diluted EPS going up 3,233.3% to $1.00. Diluted EPS for the full year went from $(0.27) in 2022 to $2.90 in 2023. Free cash flow for the year went up to $36.8b from an outflow of $(11.6b) in 2022. They also announced that their satellite constellation Project Kuiper will provide private connections from remote locations to AWS meaning that you can move your data via satellite without entering the public internet. Their guidance for Q1 is that net sales will grow between 8% and 13%. Official results: ir.aboutamazon.com/news-release/news-release-details/2024/Amazon.com-Announces-Fourth-Quarter-Results/default.aspx 🟢 $GIB (CGI Group) gained 6.24%. They released their Q1-F2024 results. YoY Revenue was up 4.4%, EBIT was up 2.1% and Net Earnings were up 1.9% leading to Diluted EPS going up 4.4% to CAD $1.67. The backlog was up CAD $510m to $26.57b since the previous quarter and they achieved new bookings of $4.19b compared to $4.04b for the quarter YoY. One interesting point made on the earnings call was that their clients see IT as a non-discretionary part of their operations which explains why they’re seeing ongoing strong demand for consulting in this area. On the topic of AI consulting they estimated about 60% was embedded in existing deals while 40% was new business. They said a lot of their clients are still keeping humans in the loop and that bigger AI implementations will hopefully come later as clients are taking a cautious approach right now. Of 10 analysts I looked at, 9 of them reiterated buy ratings. Official announcement: www.cgi.com/sites/default/files/2024-01/cgi-q1-f2024-pr-2460341-en.pdf Report continues in the comments...

4 Mentioned

ETL.PA

Eutelsat Communications

ASTS

AST SpaceMobile Inc

AMZN

Amazon.com Inc

GIB

CGI Group