Investors are eagerly awaiting the commencement of commercial service for space tourism pioneer, Virgin Galactic. This momentous occasion is set to take place on June 29, when the company will be embarking on its first commercial spaceflight – Galactic 01.
The highly-anticipated event will see a three-person crew from the Italian Air Force and National Research Council of Italy take a 90-minute flight to conduct a series of suborbital science experiments. A livestream of the flight will be available for streaming at 11 a.m. Eastern time.
Virgin Galactic’s stock ticker, SPCE, was up slightly on Monday, whilst the S&P 500 and Nasdaq Composite rose around 0.1% and 0.4% respectively.
Although shares have been volatile in the lead-up to this milestone event, Virgin Galactic’s stock has risen approximately 30% over the past month but has declined by 10% over the past week.
Space Tourism Start-Up Prepares for Takeoff
Investors eagerly await the launch of space tourism start-up’s commercial service. Despite a series of equipment-related and regulatory delays, the company is set to take off and soar to great heights.
Potential for High Revenue
Analysts project the company’s revenue to reach approximately $11.6 million by 2023. The backlog includes hundreds of potential astronauts representing over $100 million in sales. However, more lining up will be necessary for the company to reach Wall Street’s sales projections. Over the next five years, cumulative sales are projected to reach about $1.2 billion. When sales hit around $700 million a year at the end of the decade, Wall Street also projects full-year profit and cash flow.
Although some volatility should be expected, the launch of this long-anticipated service marks a major milestone for the company and its investors. With potential for high revenue, space tourism is set to become a lucrative industry in the coming years.
Navigating the Long Road to Break-Even for Virgin Galactic
The COVID-19 pandemic has disrupted the aerospace industry in ways that could never have been predicted. Virgin Galactic, a company that was once regarded as a pioneer in space tourism, has not been spared from the economic fallout of the pandemic.
Despite being one of the most promising players in the emerging space tourism industry, Virgin Galactic shares have taken a hit. In fact, its shares are still down more than 90% from an all-time high of $62.80 reached in February 2021.
It’s important to note that getting to break-even and beyond will be a long process. Investors aren’t as patient as they once were, and Virgin Galactic will have to work hard to restore their trust.
Overall, Virgin Galactic faces a challenging road ahead. Despite this, however, the company remains committed to its mission of providing space tourism experiences to people across the globe. As such, it will undertake every necessary action to restore investor confidence and get back on track towards a profitable future.
Without a doubt, Virgin Galactic is navigating through tough times. While the path to recovery may seem long and uncertain at times, the company’s steadfast commitment to its goals is an encouraging sign for investors and space enthusiasts alike.