Blue Origin has entered the intergalactic space travel market, competing alongside Elon Musk’s SpaceX and Richard Branson with Virgin Galactic. But, can you buy stock in Blue Origin?
Commercial space travel has dramatically risen in popularity (and technological feasibility) in recent years. What once seemed nearly impossible is now almost probable.
There are legitimate concerns surrounding cost structure, sustainability, and consumer demand, but Jeff Bezos continues to push onward with his next business venture.
It is unclear whether Blue Origin has a profit motive, or if Blue Origin is merely a “pet project” for the world’s richest man. We will explore all further details in this analysis!
Blue Origin History
Blue Origin is pretty clear about their mission to create the first reusable space launch vehicle. This would be an unprecedented breakthrough and dramatically decrease operating costs.
Heck, I am sure it’s extremely expensive to build a new launch vehicle from scratch!
“We are not in a race, and there will be many players in this human endeavor to go to space to benefit Earth.
Blue’s part in this journey is building a road to space with our reusable launch vehicles, so our children can build the future.
We will go about this step by step because it is an illusion that skipping steps gets us there faster. Slow is smooth, and smooth is fast.
The Blue Origin feather is a symbol of the perfection of flight. It represents freedom, exploration, mobility and progress.
For thousands of years, we humans have been looking up at the birds and wondering what it would be like to fly. Now, we look up to the stars and pursue a bright future for all of us.
Blue Origin believes that in order to preserve Earth, our home, for our grandchildren’s grandchildren, we must go to space to tap its unlimited resources and energy.
Like the Industrial Revolution gave way to trade, economic abundance, new communities and high-speed transportation – our road to space opens to the door to the infinite and yet unimaginable future generations might enjoy.
Paving the way starts now.”
Future of Space Travel
Deloitte released some internal research covering the future space travel industry.
“Space technologies have a long history with disruption.
The last decade has seen widespread change— for example, governments and other public entities historically played a driving role in space research and services, yet tomorrow’s disruptive space technologies increasingly will be driven by commercial forces.
And the future will bring additional disruption in the areas of human spaceflight, in-space manufacturing, and next-generation communications.
The combination of emerging technologies, new operating models, and other innovative concepts can accelerate the diffusion of space technologies across multiple economies and sectors: intelligent interfaces that integrate launch-range data into the National Airspace System; blockchain applications that validate remote sensing data; AI and machine learning applied to space science missions.
These and other advances can help produce substantial value that extends beyond any one organization.
In the face of the changes ahead, it is not enough to simply plan for digital transformation and assume that success will follow.
Organizations should look beyond the digital frontier—toward a future state in which transformation occurs across all mission portfolios and operating organizations.”
Personally, I think Deloitte hit the nail on the head when discussing the funding structure for these ventures moving forward. Historically, space travel was funded solely by governments.
Now, individual entrepreneurs are risking their personal fortunes for the betterment of humanity. Technology, combined with artificial intelligence, is only accelerating forward.
Businesses must begin looking at a future in space, whether they think it’s crazy or not. I’m sure people once believed driving a car was crazy.
Amazon Sponsored Financing
You’re probably wondering, “How did Blue Origin get all this money to build rockets?” It’s very simple; Jeff Bezos liquidated $4 billion in Amazon stock to sponsor the financing for Blue Origin.
$4 billion is a fraction (less than 3%) of his current net worth, so this is like him buying a new car in our situations. It’s nothing more than a drop in the bucket.
Also, no rational investor would pour that much money into a business with no clear path to profitability, growth, or even end-consumer demand.
Bezos continues to use his earnings from Amazon to fund the research and development, working captial, and payroll for Blue Origin.
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Based on current burn rate projections and Amazon profitability, Blue Origin can continue to operate indefinitely without ever earning a dime in revenue. Now that’s pretty cool.
Blue Origin Stock IPO
The Blue Origin IPO date is not on the calendar, and there is not even an indication the firm has any future plans to go public. What do I think will happen? Bezos will take the firm public.
However, that is nothing more than my own pure speculation. I have no evidence to back-up that claim, but he made a fortune on Amazon stock. It wouldn’t hurt to try and replicate the success.
It is important to note (as I have already mentioned a few times) Blue Origin appears on its face to be nothing more than Jeff Bezos’ “pet project”. Hey, that’s basically what this website is for me.
I have a full-time career, and I write these articles for fun. Jeff Bezos has a career as the CEO of Amazon, and this space company is potentially nothing more than a hobby.
Ultimately though, there is a fortune to be made for becoming the first person to create a successful, profitable commercial space company. I bet a lot of rich people would pay to go to space.
I sure would if I had the money!
Blue Origin Stock Price
CNBC has been covering the possible Blue Origin Department of Defense military contracts. The US now has their very own Space Force, and this could create revenue for Blue Origin.
“Then there is Jeff Bezos’ Blue Origin, which landed a massive engine contract in September.
Blue Origin is in final preparations to send humans to the edge of space on its reusable New Shepard rocket, with the first crewed flight expected in the coming months.
Morgan Stanley has highlighted Blue Origin before, saying Bezos “has both the will and, increasingly, the financial muscle to put to work” his vision for the space company.
Bezos is personally putting billions of dollars behind Blue Origin’s development.
The White House push to create a Space Force as a sixth military branch is also continuing, Morgan Stanley noted.
The firm said the Space Force will be submitted as a legislative proposal ‘with the President’s Budget for FY 2020 in February 2019 to support Congressional consideration in the FY 2020 National Defense.'”
What might Blue Origin’s stock price be if they are able to secure government contracts and consumer demand? Honestly, I have no idea, and I don’t think anyone will know any time soon.
Blue Origin Stock Alternatives
Alright, maybe you love the prospects of space travel, but you don’t see a future for Blue Origin becoming profitable. What are some other tech and sustainable enterprises looking for capital deployment?
Note, these ventures are not all publicly available, but they are firms I am keeping a close eye on.
Can You Buy Stock in Blue Origin?
Blue Origin stock can’t be purchased right now, but they could IPO soon. Blue Origin’s valuation recently surpassed $1 billion.
The first think I will be looking for are publicly available financial statements. As an accountant myself, I obsess over balance sheets, income statements, and operating cash flows.
Financial statements, and applicable disclosures, can tell you all the essential details an investor would need to know before releasing capital.
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