What Happened to the Virgin Galactic Stock Price Today?
- Virgin Galactic (NYSE:SPCE) stock sunk more than 5% after the space tourism company’s main competitor, Jeff Bezos’ Blue Origin, announced in a video that it will soon begin selling tickets for rides on its own space tourism rocket called New Shepard.
- SPCE stock is now down more than 60% from its mid-February highs.
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Why It Happened
- Virgin Galactic stock has been stung by yet another test flight delay and a barrage of insider selling over the past few months.
- In the meantime, Blue Origin has quietly made good progress on its space tourism operations.
- Blue Origin announcing that it will soon start selling tickets only emphasizes that the gap is closing between Virgin Galactic and its main competitor.
- On top of test flight delays and insider selling, this news is significantly weighing on SPCE stock.
Does It Matter?
- Demand for suborbital space tourism will be very robust. Of course, it’s expensive. But for those who can afford it, why wouldn’t you want to go into outerspace and do something only a handful of people have ever done before in the history of humankind?
- Supply for suborbital space tourism will be very limited. Virgin Galactic ships fit six people. Same with Blue Origin ships. And Virgin only has two ships today, while Blue Origin has one.
- Demand for suborbital tourism will dramatically outstrip supply for the foreseeable future, meaning that there is ample room for both Virgin Galactic and Blue Origin to have huge success in this market.
- Meanwhile, it appears that Virgin Galactic safely conducted a flight of its mothership, the VMS Eve, this week. That paves the way for Virgin to do a test flight of the VSS Unity in May, which is on track with previous plans.
- If that flight is successful, the current downtrend in SPCE stock will quickly reverse course.
SPCE Stock Price Forecast
- In our minds, Virgin Galactic is a high-quality play on the Space Race 2.0.
- Long-term, we believe Virgin Galactic will be operating multiple spaceports, and flying dozens of spaceships on dozens of flights every month out of those spaceports, at very premium ticket prices which will lead to very large revenues and very healthy profit margins.
- On those assumptions, believe SPCE stock is worth around $50 today.
SPCE stock is one of the best long-term investment opportunities in the market today.
But it’s not the best opportunity.
Instead, the best opportunity is in a company that reminds me of a young Amazon (NASDAQ:AMZN). Indeed, I think buying this stock today could be like buying AMZN stock back in 1997 — before it soared thousands of percent.
Which stock am I talking about?
Click here to watch my first-ever Exponential Growth Summit to find out the name, ticker symbol, and key business details of this potential 10X stock pick.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it.
