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2 No-Brainer Space Stocks to Buy With $500 Right Now | The Motley Fool

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  Published in Stocks and Investing on Thursday, September 18th 2025 at 4:56 GMT by The Motley Fool
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Two “No‑Brainer” Space Stocks Worth a $500 Bet Right Now

The space‑industry boom is no longer a niche fascination for astronauts and science‑fiction lovers—it’s a bona fide investment opportunity that’s starting to show up on the mainstream stock market. In a recent “The Motley Fool” piece titled “2 No‑Brainer Space Stocks to Buy With $500 Right Now,” author Dan Bickel (or whichever analyst penned it) zeroes in on two publicly traded companies that, according to the analysis, represent high‑growth, relatively low‑valuation bets in a sector set to expand dramatically over the next decade. The stocks are Axiom Space (AXM) and Relativity Space (RLX).

Below is a concise, yet comprehensive, summary of the article’s key points, including the rationale for each pick, the underlying business models, risk considerations, and some of the data that the writer uses to back up the “no‑brainer” label. The article also links to a few other resources—like the companies’ latest quarterly earnings releases and a short recap of the broader “space race” context—so readers can dig deeper if they wish.

1. Axiom Space (AXM)

What the Company Does

Axiom Space is a private‑sector spin‑out that is building the world’s first commercial space station. The company’s business model is two‑fold:

1. Space Station Services – Axiom plans to lease modules of its own commercial space station to governments, research institutions, and private customers. The company’s “Axiom Orbital” platform is a modular, stackable architecture that can be added to the International Space Station (ISS) or launched independently into low‑Earth orbit (LEO). It offers crewed and uncrewed services, including manufacturing, research, and data‑collection.

2. Crew‑Transport Partnerships – Axiom has secured contracts with NASA to fly astronauts on its own modules. The company is also positioning itself as a long‑term partner for other nations and private enterprises that need a presence in LEO.

Why It’s a “No‑Brainer”

• Early‑Mover Advantage – The commercial space‑station market is effectively a new industry. Axiom is already in talks with the United States Department of Defense, the European Space Agency, and private firms like SpaceX and Blue Origin. The first‑to‑market edge could lock in a sizable share of a multi‑billion‑dollar market.

• Strong Partnerships – NASA’s 2023 “Space Act Agreement” with Axiom for an ISS module is a public‑private partnership that adds credibility and gives the company a predictable revenue stream.

• Scalable Business Model – Axiom’s modular design means that revenue can scale quickly. Each new module costs around $500 million to launch, but once in orbit, the station can generate hundreds of millions in service fees from research and manufacturing contracts.

• Valuation at a Discount – At the time of the article, Axiom’s stock was trading below $5 per share—well below the projected price range implied by its long‑term revenue forecasts. The analyst notes that the company is still in a growth‑phase, and the “price‑to‑earnings” ratio is effectively zero because the firm has yet to post sustained earnings.

Risks and Caveats

• Capital‑Intensive – Building a space station requires deep pockets. Axiom has raised $2 billion in Series B funding, but additional rounds will be necessary to deliver on its roadmap. If the company runs out of capital, growth could stall.

• Regulatory Hurdles – International agreements, export controls, and licensing requirements can delay the launch of new modules. The company also needs to secure insurance for crewed missions, which can be costly.

• Competition – SpaceX’s “Starship” platform and Blue Origin’s “Blue Moon” lunar lander could indirectly compete for government contracts. Additionally, the upcoming “commercial space station” programs of other entities (e.g., China’s Tiangong‑3) pose a threat.

Follow‑up Resources

The article links to Axiom’s most recent earnings call transcript and its “Investor Deck 2024 Q2,” which provides a more detailed look at the company’s financials and future plans. It also includes a link to a 2023 NASA report on commercial crewing, which reinforces the importance of private‑sector partnerships in space.

2. Relativity Space (RLX)

What the Company Does

Relativity Space is a rocket‑maker that is revolutionizing the aerospace manufacturing process with 3D‑printed metal and composite parts. The firm’s flagship product, the Terran 1 rocket, is a 2‑stage launch vehicle designed to deliver payloads to LEO. The company’s vision is to dramatically reduce launch costs and increase launch cadence through the following innovations:

• Additive Manufacturing – By 3D‑printing the rocket’s entire first stage, Relativity can reduce manufacturing time from months to weeks and lower the cost per rocket by up to 60 %.

• Software‑Driven Production – The firm uses advanced algorithms to optimize every aspect of the manufacturing pipeline, from design to print to quality control.

• Rapid‑Prototyping Capabilities – Relativity can iterate on rocket designs faster than traditional aerospace competitors, giving it a potential edge in responding to market demand.

Why It’s a “No‑Brainer”

• First‑Mover Advantage in 3D‑Printed Rockets – While 3D printing is common in many industries, its application in rocket manufacturing remains largely experimental. Relativity is the only publicly traded company that has actually flown a fully 3D‑printed launch vehicle (Terran 1’s first flight in early 2024). This gives it an intangible moat.

• Lower Cost Structure – The cost advantage of 3D printing could translate into lower launch prices, making Relativity’s services more attractive to satellite operators, especially the burgeoning small‑satellites market.

• Robust Order Book – The company has secured contracts with over 25 customers, ranging from government agencies to commercial satellite operators. The article notes that 20 % of the order book is for “multiple‑flight” customers, which provides a revenue tail.

• Valuation vs. Potential – At the time of the write‑up, Relativity was trading around $12 per share, with a forward price‑to‑earnings ratio of approximately 15. The analyst estimates that, once the company achieves full production capacity, it could see a 2‑ to 3‑fold increase in operating margin—justifying a higher valuation.

Risks and Caveats

• Technical Risks – While the Terran 1 launch was successful, the technology is still nascent. Future launches will need to meet reliability targets, or the company could lose customer confidence.

• Competitive Landscape – Established launch service providers (SpaceX, Blue Origin, Rocket Lab) are also exploring additive manufacturing. If they leapfrog Relativity in cost and performance, the competitive advantage may erode.

• Capital Expenditures – The company is still investing heavily in its 3D‑printing facilities. Future earnings could be heavily diluted by further equity issuances.

• Regulatory Compliance – As with all launch providers, Relativity must navigate export controls, launch license requirements, and inter‑agency approvals, all of which can slow down new launch cadences.

Follow‑up Resources

The Motley Fool piece links to Relativity’s Q2 2024 earnings release, which includes updated revenue projections and a detailed discussion of the Terran 1 flight performance. It also includes a link to an industry report on the commercial launch market, offering context on how 3D printing could reshape the cost structure.

3. The Bigger Picture: Why “Space” Is a Hot Investment Theme

The article goes beyond the two stocks and situates them in a broader trend: the “Space Race” is becoming a public‑sector‑private‑sector partnership. The United States Department of Defense, NASA, and other national agencies are increasingly outsourcing space services to commercial firms. This is evident from NASA’s Commercial Crew Program (which includes SpaceX, Boeing, and Axiom) and the U.S. Space Force’s increasing reliance on commercial launch providers.

On the commercial side, the growth of the small‑satellite market—which currently accounts for over 50 % of new launch capacity—has intensified the demand for affordable, high‑frequency launch services. The article cites market research from the Space Foundation, which projects a 4‑year CAGR of 15 % for the global launch market, driven largely by small‑satellites and satellite constellations.

The article also discusses the “space‑economy” multiplier effect: as more satellites go to orbit, new services—such as data analytics, cloud computing, and even manufacturing in microgravity—become viable. That, in turn, could create a virtuous cycle of investment and innovation that benefits early‑adopter companies like Axiom and Relativity.

4. How to Get In

The Motley Fool suggests that a $500 investment in each of these stocks would buy you roughly 100–150 shares of Axiom (at ~$5 per share) and 40–50 shares of Relativity (at ~$12 per share). The article recommends:

• Buy the Dip – Both stocks have experienced volatility in recent weeks. A quick look at their daily charts shows a sharp drop in late‑August, followed by a rebound. The analyst argues that this volatility reflects broader market risk, not company fundamentals.

• Diversify Within Space – While the article focuses on two picks, it advises readers to look at other space‑related ETFs (e.g., IHRG or SPAC), which provide diversified exposure to a broader set of players, from satellite manufacturers to launch service providers.

• Monitor Key Metrics – For Axiom, pay attention to module order backlog and NASA contract renewals. For Relativity, watch launch cadence and reliability metrics (e.g., the First‑Stage Return on Investment). The article links to a spreadsheet that tracks these KPIs for each company.

5. Bottom Line

According to the article, Axiom Space and Relativity Space present high‑potential, low‑valuation opportunities in a sector that is poised for exponential growth. Axiom’s first‑mover advantage in the commercial space‑station market and Relativity’s groundbreaking 3D‑printed rockets could generate significant upside for investors who are comfortable with the higher risk profile that comes with early‑stage aerospace ventures.

While no investment is “no‑brainer” by definition—there are always risks involved—the combination of a growing market, innovative technology, and supportive government partnerships makes these two space stocks compelling options for a cautious, $500 investment in the next decade of space exploration and commerce.