Business · Markets · 5 hrs ago
Investors eye space as a growth sector, but major risks remain
Investors are turning to the space industry as shares in AI-related companies cool.
The interest spans ideas such as lunar colonies and mining asteroids, though these ambitions could take decades or may never be realized.
SpaceX raised US$85.7-billion in its June IPO, valuing the company at US$1.77-trillion, but its shares later fell below their US$135 IPO price before closing at US$147.49 on Friday.
Building a space industry could cost trillions, while SpaceX reported spending US$48-million on capital projects in the first nine months of fiscal 2026.
Starlink already provides satellite connectivity, but it remains unclear what other space businesses can make a profit.
Asteroid metals may be valuable in theory, but bringing large quantities to Earth could make them worth far less, so space resources may be used in space instead.
Canada is backing launch facilities in Newfoundland and Labrador and Nova Scotia, while the wider industry’s commercial prospects may take many years to become clear.
Investors are looking to space as a possible growth sector as shares in AI-related companies cool.
SpaceX raised US$85.7-billion in an initial public offering in June, valuing the company at US$1.77-trillion.
The article says the high costs of space activity and uncertainty about profitability are major risks for investors.
SpaceX shares rose to US$225.64 after the offering, then fell below their US$135 IPO price in early July.
Satellite connectivity is already operating through SpaceX’s Starlink program, but commercial prospects for extracting space resources remain uncertain.
- Who
- Investors and space companies, including SpaceX, are central to the story.
- What
- Investors are considering space as a growth sector, while the article warns that costs and uncertain profitability pose major risks.
- When
- The article was published on October 26, 2026. It discusses events in June and the third quarter of fiscal 2026.
- Where
- Space activity discussed includes SpaceX’s Starbase in Texas, and Canadian spaceport projects in Newfoundland and Labrador and Nova Scotia.
- Why
- Investors are drawn by the prospect of future space industries, including satellite connectivity and use of resources in space.
This story does not have two clearly opposing sides.
SpaceX completed an initial public offering that raised US$85.7-billion at US$135 per share.
SpaceX shares rose to US$225.64.
SpaceX shares fell below their IPO price and hovered around that level afterward.
The Canadian government announced a $20-million investment over 10 years with NordSpace and signed a 10-year access deal with Maritime Launch Services.
SpaceX released its first quarterly report, reporting US$48-million in capital expenditure for the first nine months of fiscal 2026.
- SpaceX IPO
- US$85.7-billion raised at US$135 per share
- SpaceX IPO valuation
- US$1.77-trillion
- SpaceX share price
- US$147.49 at Friday’s close
- Canadian investment
- $20-million over 10 years with NordSpace Corp.
- SpaceX third-quarter revenue
- US$14.6-billion, up 161 per cent year over year