The Next Space Race
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WHYVALUESTOCKSHAVEROOMTORUN•PAGES7,M1 VOL. CI NO. 12 MARCH 22, 2021 $5.00 THE NEXT SPACE RACE As technology advances, the competition to send rockets and their payloads into orbit has turned into a business worth tens of billions of dollars. We size up the companies and their stocks. PAGE 14 > 63142 CONTENTS 03.22.21 VOL.CI NO.12 P. 10 P. 4 P. 26 Signs of Hope for Economy: Reasons to Alzheimer’s Treatments A Steep Selloff Is Unlikely Expect Strong Growth While Eli Lilly’s recent test results Up&DownWallStreet:The bond vigilantes are back, pushing up interest rates, which By MATTHEW C. KLEIN fell short of high expectations, they is punishing highflying stocks. But the Federal Reserve is likely to step in to stop them if suggest that drugmakers are on the they start to go too far. By RANDALL W. FORSYTH P. 27 right track. Here’s how to invest. Income: High-Yielding By JOSH NATHAN-KAZIS Parting Ways Bank Stocks Beckon P. 11 Whilethetech-heavyNasdaqusedtorunroughlyinlockstepwith10-yearTreasuryyields, By CARLETON ENGLISH the two have diverged sharply. Rising rates are pounding growth stocks. NFT Investing Mania P. M1 CouldBeHeretoStay 1.75% 15,000 Trader: Sticking With Investors’ embrace of nonfungible tokens is opening new avenues for Banks and Energy commerce while helping to elevate By BEN LEVISOHN a new generation of creators. 1.50 14,000 By AVI SALZMAN P. M4 P. 12 Euro Trader: FanDuel 1.25 13,000 IPO Could Lift Flutter Light at the End of Nasdaq By RUPERT STEINER the Tunnel for Splunk The data miner’s new subscription P. M4 model sets it up to become a global 1.00 12,000 10-Yr Treasury Yield Emerging Markets: leader in cloud computing. Some see 60% upside for its stock. Chinese Healthcare By ERIC J. SAVITZ By CRAIG MELLOW 0.75 11,000 P. 14 P. M5 A Launching Pad for Striking Price: Hedging Outer-Space Upstarts 0.50 10,000 Against a Market Drop Cover Story: The field of pure- Dec. Jan. Feb. March By STEVEN M. SEARS play space companies is growing. 2020 2021 Source: Bloomberg Here are six promising start-ups— P. M6 and advice for avoiding black holes. By AL ROOT Commodities: The Outlook for Iron Ore P. 19 Index P. 3 P. 21 P. 7 By MYRA P. SAEFONG Review & Preview P. 8 Tracing the Arc From Mailbag P. 27 NotYourTypical Streetwise: Strange InsideScoop P. M7 PENTA Sputnik to Musk Chartingthe Market P. M9 Real Estate Fund Times, Sensible Stocks Barron’s Centennial: We’ve been Winners & Losers P. M10 Profile: Instead of focusing on just By JACK HOUGH Inside the Fight to tracking the space race since the Research Reports P. M11 REITs, Baron Real Estate favors Save Our Seas 1950s—and helping our readers Market View P. M12 casinos, internet infrastructure, P. 22 With the world’s oceans under spot the best investments. and real estate service providers. threat, our latest Penta pullout Cover Photograph Funds: What to Buy for By KENNETH G. PRINGLE courtesy of Rocket Lab By LEWIS BRAHAM focuses on cleareyed solutions the Next Leg of Gains and the people behind them. P. 20 © 2021 Dow Jones & Company, P. 24 By EVIE LIU Inc. All Rights Reserved. E.l.f. Beauty Could Our newspapers are 100% sourced A Banner Year for P. 23 from sustainable certified mills. Barron’s Roundtable Soon Be Sitting Pretty Convertible Bonds BARRON’S (USPS 044-700) (ISSN Tech Trader: How to Known for its inexpensive but 1077-8039) Published every Q&A: John Calamos explains how on Fox Business Monday. Editorial and Publication stylish products, e.l.f. is especially Headquarters: 1211 Avenue of these hybrid securities help manage Read Cloud Metrics Watch our weekly show Fridays at the Americas, New York, N.Y. well positioned to benefit as people 10036. Periodicals postage paid at risk without market timing—and By ERIC J. SAVITZ 10 p.m. or 11:30 p.m. ET; Saturdays Chicopee, MA and other mailing resume their prepandemic routines. offices. Postmaster: Send names three issues he likes now. at 10 a.m. or 11:30 a.m.; or Sundays address changes to Barron’s, 200 By TERESA RIVAS Burnett Rd., Chicopee, MA 01020 By LESLIE P. NORTON at 7 a.m., 10 a.m., or 11:30 a.m. March 22, 2021 BARRON’S 3 Our index lists significant companies mentioned in stories and columns, For Customer Service, call 1 (800) 544-0422, or go to INDEX plus Research Reports, and Corrections & Amplifications. The references customercenter.barrons.com. For reprints of articles, are to the first page of the item in which the company is mentioned. call 1 (800) 843-0008, or go to djreprints.com. M O A Adobe ......................................9 J JD.com ...................................M4 Maxar Technologies ........................16 O-I Glass ..................................19 Aerojet Rocketdyne Holdings ..............16 JD Health International ..................M4 Microchip Technology......................25 Opendoor Technologies ....................21 Airbnb.....................................25 Jiangsu Hengrui Medicine ................M4 Microsoft ...................................8 Osprey Technology Acquisition.............18 Alibaba Group Holding ..................8,M4 M&T Bank ................................27 P Alibaba Health Information Technology . M4 K Kilroy Realty ...............................7 Paramount Group .........................M7 N Alphabet ....................................7 National CineMedia .......................M7 Penn National Gaming .....................22 Altria Group ................................9 L Lockheed Martin ..........................15 NavSight Holdings .........................18 People's United Financial ..................27 Amazon.com ...............................15 Lordstown Motors ........................M9 New Providence Acquisition ...............18 Perspecta .................................M7 AMC Entertainment Holdings ............M9 Lumentum Holdings ........................7 Nexstar Media Group .......................7 Philip Morris International..................9 Amgen....................................M7 Luminar Technologies ....................M9 NRG Energy .............................M9 Ping An Healthcare & Technology ........M4 AstraZeneca ................................8 Lyft...................................23,M11 Plug Power ...............................M9 AT&T.....................................19 Purple Innovation........................M11 R B BeiGene ..................................M4 RingCentral ...............................25 Benefitfocus ..............................M7 Roche Holding ...........................8,10 Biogen .....................................10 Rogers Communications ....................8 Blackstone Group ...........................8 Royal Caribbean Group ....................25 Boeing .....................................15 Rubius Therapeutics ......................M9 BofA Securities .............................8 S Rupert Murdoch Executive Chairman, News Corp Salesforce .................................23 C Citigroup ...................................7 Robert Thomson CEO, News Corp Almar Latour CEO, Dow Jones ServiceNow ................................23 Citizens Financial Group ...................27 Shaw Communications ......................8 SENIOR VICE PRESIDENT, BARRON’S GROUP Mae M. Cheng Simon Property Group .....................22 Columbia Property Trust .................M7 ASSOCIATE PUBLISHER, BARRON’S GROUP Dan Shar Comerica ..................................27 MANAGING EDITORS, BARRON’S GROUP Duncan Mavin, Dave Pettit Solid Biosciences..........................M9 Corning....................................19 Splunk .....................................12 Coty .......................................20 Spotify Technology ........................25 EXECUTIVE EDITOR SENIOR MANAGING EDITOR Bob Rose Lauren R. Rublin Stable Road Acquisition....................18 D Darden Restaurants ........................7 DEPUTY EDITOR Alex Eule DEPUTY EDITOR Ben Levisohn Stryker ..................................M11 Datadog ...................................12 EDITORIAL DIRECTOR, INVESTING & ASSET MANAGEMENT Beverly Goodman SuRo Capital ..............................23 Devon Energy ..............................7 EDITORIAL DIRECTOR, MAGAZINE Phil Roosevelt T Discovery ...................................7 MANAGING EDITOR, DIGITAL Matt Bemer MANAGING EDITOR, FEATURES Jeffrey Cane Taiwan Semiconductor Manufacturing .....M4 Dropbox ..................................M7 MANAGING EDITOR, ENTERPRISE Brian Hershberg Take-Two Interactive Software .............7 Takung Art ...............................M9 Dynatrace .................................12 ASSISTANT MANAGING EDITORS Mary Romano, Robert Sabat Target .....................................20 ASSOCIATE EDITORS E Elastic .....................................12 Andrew Bary,Randall W.Forsyth, Jack Hough, Reshma Kapadia, Eric J. Savitz TCF Financial ...........................9,27 e.l.f. Beauty ................................20 SENIOR WRITERS Bill Alpert, Daren Fonda, Matthew C. Klein, Leslie P.Norton, Tencent Holdings .........................M4 Eli Lilly ...................................10 Al Root, Avi Salzman, Alexandra Scaggs, Lawrence C. Strauss Tesla ..............................4,15,24,M1 Entain ....................................M4 REPORTERS Lisa Beilfuss, Luisa Beltran, Max A. Cherney, Carleton English, Nicholas Jasinski, Evie Liu, Texas Instruments .........................19 Estee Lauder ..............................20 Josh Nathan-Kazis, Teresa Rivas, Connor Smith, Jacob Sonenshine, Ben Walsh Trane Technologies ......................M11 Extended Stay America