The new wave of investment in the space economy has led to a dramatic growth, but with good upside potential. The growth of the space economy is mainly due to the strong interest of the Department of Defense of the United States and interested countries in space infrastructure. The trampling effect caused by the historic IPO of SpaceX has encouraged investors to significantly overvalue other space sector companies.

Some companies are raising funds with extremely high valuations that risk not finding a real value because they are based on uncertain variables such as excessive dependence on SpaceX. Many companies are forced to rely on American aerospace company for their own infrastructures. The concentration of Starlink missions within SpaceX has increased its Falcon 9 launch percentage from 54% in 2020 to around 79% by 2026.

This has favored the growth of the sector, but can generate an effect domino if not controlled properly. The Reuters statistics show that seven space companies have received communication that the capacity of Falcon 9 launches has been prebooked until 2028-2029. This indicates a continuous growth trend in the space sector, but also a risk of overvaluation if not controlled well.

The boom in space investments has led to a significant variation in business figures. Investors are trying to understand whether the prices of space stocks are high or low, and this has enveloped other sectors like Amazon and Eutelsat OneWeb. The domino effect could lead to a dramatic growth in the space economy, but also to an overvaluation if not controlled properly.

Space Capital analysis highlights that some investors are raising funds with extremely high valuations that risk not finding a real value. In conclusion, while the space economy is registering significant growth, it is important to keep in mind that there are good upside potential for overvaluation. The concentration of Starlink missions within SpaceX has incentivized investors to significantly overvalue other space sector companies, but it is important to take into account uncertain variables such as excessive dependence on SpaceX.