Space is one of the most exciting investing themes going, but the ways to play it are frustrating. The buzziest names, like Jeff Bezos's Blue Origin, are private and off-limits to most people, and the one giant that went public, Space Exploration Technologies, trades at a dizzying valuation and swings wildly from day to day.
If you have $5,000 and want to put it somewhere sturdier, I would skip the space lottery tickets entirely and back a trillion-dollar consumer goods stock that quietly joined that elite club this year: Walmart (NASDAQ: WMT).
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Private space companies make for great headlines — and terrible portfolios for ordinary investors. You typically cannot buy them unless you are wealthy and connected; they are illiquid, and they are all-or-nothing bets on ventures that may take a decade to pay off, if they ever do.
Even SpaceX, now that it trades publicly, asks you to pay more than 100 times sales and ride out gut-wrenching volatility. That is a lot of speculation for a slice of a still-unproven business.
Walmart crossed the $1 trillion mark this year. The company has quietly become a growth story. Its e-commerce sales have been climbing more than 20% a year, and its high-margin advertising arm, Walmart Connect, pulled in roughly $6.4 billion last fiscal year while growing far faster than the core retail business. Its Walmart+ membership program keeps adding subscribers and now counts around 30 million members, each one a recurring, sticky source of revenue.
That mix matters. Walmart pairs the defensive strength of selling groceries and essentials, a demand that holds up in any economy, with faster-growing, higher-margin digital businesses layered on top.
It is also a Dividend King, or a company that has at least 50 years of consecutive annual dividend increases. So your $5,000 collects growing income while you wait. And unlike a private space play, you can buy Walmart stock instantly and sell it just as easily.
I will be fair: Walmart is not going to shoot to the moon the way a successful space start-up might. Retail margins are thin, the stock recently slipped just below the trillion-dollar threshold, and a weaker consumer could pressure spending at the retail giant. You are trading explosive upside for durability and reliability. For some investors chasing a 10-bagger, that will feel too tame.
Source: Yahoo Finance Top News — This article was automatically imported from the source. Read full article at original source →
