Satellites & Comms

Sector thesis

The satellites and communications sector covers companies that build, launch, and operate spacecraft and ground infrastructure to deliver connectivity and data services globally. This includes everything from the rockets that get satellites into orbit to the antennas that receive their signals. Right now, this sector is riding a genuine megatrend: the world needs connectivity everywhere. Remote work, autonomous vehicles, maritime shipping, and disaster response all depend on reliable communications that ground-based towers can't always reach. Governments and enterprises are willing to pay for coverage in remote areas, which creates a real business case—not just hype. Within the sector, there are three main pieces. First, launch providers: companies that build rockets and sell rides to space. Second, satellite operators: firms that own and operate the actual spacecraft, selling bandwidth to customers. Third, ground infrastructure: the antennas, receivers, and software that connect satellites to users on Earth. The biggest risks are real. Launch is capital-intensive and failure is expensive—a single rocket mishap can wipe out years of profit. Satellite constellations take years to build and deploy, so you're betting on demand staying strong. Regulatory uncertainty around spectrum (the invisible highways satellites use) can shift overnight. And competition is fierce; multiple companies are racing to build similar networks, which could eventually crush margins. For a retail portfolio, this sector works as a long-term growth bet, not a quick trade. Watch for: launch success rates (how often rockets work), customer contract announcements (proof people will pay), and government funding decisions (they're major buyers). The sector is still early and volatile, so position sizing matters. This isn't a "set and forget" holding.