Folks, it's easy to get wrapped up in the space excitement these days. But I'm a bit more cautious... As I discussed yesterday, satellite companies have gone through a lot of changes over the decades. In the 1990s, two companies took advantage of a technology called low-Earth orbit ("LEO") satellites – Iridiu

Watch Out for the Hype in Space Joe Austin, senior analyst, Chaikin Analytics Folks, it's easy to get wrapped up in the space excitement these days. But I'm a bit more cautious... As I discussed yesterday, satellite companies have gone through a lot of changes over the decades. In the 1990s, two companies took advantage of a technology called low-Earth orbit ("LEO") satellites – Iridium Communications (IRDM) and Globalstar (GSAT). Iridium came out of Motorola, which has a long history in the telecommunications sector. In the 1980s, its engineers dreamed up a satellite phone network big enough to cover the entire globe.  In the late 1990s, Iridium launched its network of 66 satellites. This cost $5 billion to get off the ground. At the time, it was the largest private satellite project in history. To offload its risk, Motorola took Iridium public in 1997. That was about a year before the network was even finished or completed its first phone call. Yet even after the satellites were in space, the customers never came. Iridium filed for bankruptcy in 1999, one of the largest bankruptcies in U.S. history. Globalstar didn't fare much better... Globalstar started as a joint venture between Loral Space & Communications and Qualcomm (QCOM). The company bet that it could beat Iridium by building something cheaper and simpler. Well, Globalstar went public in 1995... and was bankrupt by 2002. In its bankruptcy filing, it listed $570 million in assets and $3.3 billion in liabilities. The old Globalstar was eventually sold to a private equity company for $43 million. As I shared yesterday, Globalstar and Iridium have been in the headlines recently... this time as multibillion-dollar acquisitions. The companies that Amazon (AMZN) and Rocket Lab (RKLB) are acquiring are the same networks, rebuilt from the wreckage of those original bankruptcies. During the decades that saw the rises and falls of Globalstar and Iridium, another company emerged.  This is a company that also utilizes satellites... even though it's an entirely different business. Recommended Links: Today Could Change Nvidia Forever Beginning today, the market's biggest move of 2026 will open the most lucrative trading opportunity in four years. History says there's a 100% chance of a massive shift driven by AI stocks. TradeSmith is sharing a breakthrough new strategy to play it, and it has crushed the market by 115% this year. Click here to learn more. The System That Called 87 of the Top 100 Stocks Just Flashed Its Rarest Signal Marc Chaikin's Power Gauge has an 87% hit rate on the market's best performers. Now it's flashing VERY BULLISH – its highest possible signal – on a stock that just unlocked for hundreds of millions of new buyers. Marc thinks this could be his next 100%-plus winner. Click here for the full details. A Tough Ride for the Stocks Founded in 1980, EchoStar's (ECHO) primary focus was on satellite TV service. The goal was to compete with cable. And EchoStar did well for a while. By 2013, its Dish network had more than 14 million subscribers. But along the way, EchoStar tried to expand into the mobile-phone business and racked up $25 billion in debt. That debt eventually caught up with it. In June, its TV subsidiary, Dish DBS, filed for bankruptcy, though EchoStar itself did not. That distinction matters. EchoStar still owns valuable spectrum and other businesses outside the bankrupt part. SpaceX (SPCX) even came to pick over EchoStar's remains. Last year, it bought wireless spectrum licenses from EchoStar for $17 billion. As you can see from EchoStar's long-term price chart, investors were very interested in this sale... probably due to EchoStar receiving some of SpaceX's pre-IPO stock as part of the sale. It's interesting comparing this with GSAT's long-term stock chart... As you can see, after the initial excitement of the renewed company, the share price fell off dramatically. It has taken a long while, but GSAT is starting to recover. No doubt investors are interested in Amazon bringing some long-overdue relief.  On the other hand, Iridium struggled from the outset of its IPO... Overall, these long-term charts show that it hasn't been an easy ride for shareholders of all three companies. To be fair, not every satellite company was a disaster... DirecTV launched in June 1994. It signed up more than 1 million subscribers in its first year alone. By the end of 2014, it had 20.4 million subscribers in the U.S. and another 19 million in Latin America. It also threw off $3.1 billion in free cash flow that year. In 2015, AT&T (T) bought the whole company for roughly $48.5 billion – or $67.1 billion including DirecTV's debt. And yet, as I said earlier, everything I've discussed makes me a bit more cautious about all the hype in the space business these days... What About SpaceX? Now we have SpaceX. People rightly question whether it will be a success or not. SpaceX's formal offering document tells its own story. It opens with 15 pages of spectacular photos of rockets, satellites, and people in orbit. Then after that, we get to more than 300 pages of fine print that explains what the business actually hopes to accomplish. And on Page 11 of that is this chart of the estimated total addressable market ("TAM") SpaceX wants to conquer... Of the seven markets the company lists, only three include space – "Space-Enabled Solutions," "Starlink Broadband," and "Starlink Mobile."  These three account for around 7% of what SpaceX sees as its TAM. The other 93% comes from all the AI business that SpaceX hopes to sell someday. Folks, this is the AI business that SpaceX has no real products or customers for today. In other words, you're not really buying a rocket company. You're buying an AI bet with a rocket attached. So with all of this enthusiasm around, it's easy to feel like you've been left out. But that might not be so bad. Amid all the hype around space, be careful before blindly piling into stocks in this corner of the market. If history is any guide, space can be a hard place to make money. Good investing, Joe Austin Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral       Bearish Dow 30 +0.24% 9 16 6 S&P 500 +0.40% 113 303 82 NASDAQ -0.27% 25 59 21 Small Caps +0.43% 692 1045 313 Bonds +0.19%   Financial Services +2.50% 22 30 11 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are all bullish. *  *  *  * Sector Tracker Sector movement over the last 5 days Communication +3.58% Financial +2.89% Energy +1.62% Discretionary +1.47% Real Estate +0.93% Materials +0.68% Information Technology +0.10% Industrials -0.20% Utilities -0.31% Staples -1.09% Health Care -2.47% *  *  *  * Industry Focus Oil & Gas Exploration & Production 16 32 3 Over the past 6 months, the Oil & Gas Exploration & Production subsector (XOP) has outperformed the S&P 500 by 17.5%. Its Power Bar ratio which measures future potential is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #9 of 21 subsectors and has moved up 1 slots over the past week. Top Stocks CLMT Calumet, Inc. CLNE Clean Energy Fuels Corp. CVI CVR Energy, Inc. *  *  *  * Top Movers Gainers PYPL +17.20% BLK +6.63% CBRE +6.22% IVZ +5.46% BNY +5.08% Losers PNR -15.00% ERIE -11.86% DELL -9.80% PGR -9.43% WDC -8.78% *  *  *  * Earnings report Earnings Surprises ELV Elevance Health, Inc. 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