Maxar Technologies (TSX:MAXR)(NYSE:MAXR) stock has been on the radar for tech investors for years. Now it seems billionaire tech investor and public listing champion Chamath Palihapitiya is eyeing the stock, too.
Yesterday, Twitter user CÆTUS tweeted about Maxar’s latest deal to build the Galaxy 37 Geostationary Communications Satellite for Intelsat. Palihapitiya replied “Ok, you finally got me. Walk me thru (sic) the pitch. I’ll be in touch…”
This indication of interest from one of the most prominent tech investors in the world could ignite Maxar stock and help it finally turn things around. While there’s no way to be certain Palihapitiya will ever bet on Maxar, here’s why the company is a perfect fit for his portfolio.
Palihapitiya tends to focus on technology stocks with hyper-growth potential. This week, his special purpose acquisition company (SPAC) Social Capital Hedosophia II took real estate tech company Opendoor public.
In a similar move, Palihapitiya used a SPAC to take Virgin Galactic public last year. He’s now a major shareholder of the space tourism firm. His other major investment wins include Slack and Box. In other words, he’s at the forefront of the ongoing tech boom.
His experience with Virgin Galactic and enterprise tech startups makes him the ideal investor for Maxar stock.
Maxar stock has had a wild ride over the past few years. Over the course of 2018, the company lost roughly 92% of its value, as investors got wary of its debt burden. However, the sale of a few core assets in recent years and the relocation to the United States could help the company turn things around.
In fact, Maxar stock is already on the upswing. The stock is up 568% from mid-2019. Despite this surge, it’s still trading at just 11 times earnings per share and offers a 4% dividend yield.
The company’s latest deal to build satellites for Intelsat is an indication of things to come. Winning a few major contracts will drastically improve the company’s cash flow and allow it to pay down debt over the next few years. This could unleash the stock’s true potential.
Tech investors hungry for a speculative bet in this market should certainly keep an eye on Maxar stock.
Tech investor Chamath Palihapitiya’s track record is commendable. Over the past decade, he has picked up early stakes in some of the most noteworthy tech startups across the country.
His ability to unlock value in underrated technology companies and little-known software startups is the key reason his net worth crossed US$1 billion when he was 34 years old. Tech investors should probably monitor his portfolio closely.
In a recent tweet, Palihapitiya indicated interest in Maxar stock. He doesn’t own a stake, but I believe the stock would be a perfect fit for him. He could unlock value in this struggling tech giant. Keep an eye on this story as it develops.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Vishesh Raisinghani owns shares of Twitter. Tom Gardner owns shares of Twitter. The Motley Fool owns shares of and recommends Box, Slack Technologies, Twitter, and Virgin Galactic Holdings Inc. The Motley Fool recommends MAXAR TECHNOLOGIES LTD.