Prospects of Virgin Galactic That Will Affect the Stock Price in 2020

Prospects of Virgin Galactic That Will Affect the Stock Price in 2020

Who is the new age game-changer in adventure tourism? Virgin Galactic!

Its venture to take passengers on suborbital voyages in a commercial aircraft has remained in the news ever since the announcement. The proposal aims to cater to two major segments:

  1. Space tourists.
  2. Science missions into space. 

Carriers and the Game Plan

The ambitious space plans of Virgin Galactic’s founder Richard Branson is based on two aircraft:

  1. White Knight II: It will carry the suborbital spacecraft with its passengers into the sky.
  2. Space Ship II: It will be air-launched from White Knight II into space.

History and Past Accomplishments

TSC (The Spaceship Company) was founded in 2005 to build space ships. In 2007, a major explosion during a cold fire test killed three employees and gravely injured another three.

Major announcements

Here are some of the major announcements from Virgin Galactic over the years.

  1. Richard Branson announced in 2008 that the company’s first space flight would happen within eighteen months.
  2. Virgin Galactic had contracted to buy aircraft from TSC and had placed orders. It informed in 2009 the first flights would be ready in 24 months. The launch place will be Spaceport America.

iii. It was announced in 2009 that two spaceships would be carried by White Knight in early 2010. This was fulfilled in March 2010.

  1. The successful launch of its space crafts proved the merits of the company to design, build, and fly in space. 

Prospects of Virgin Galactic That Will Affect the Stock Price in 2020 

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Prospects of Virgin Galactic in the Stock Market

It went public in 2019. A special-purpose acquisition company was used to accomplish this. Since then, its share value has gone through many upheavals for investors dealing in stock trading. A target set by the Bank of America to buy Virgin Atlantic shares has sent its value skyrocketing. Some financial analysts have predicted an upside rise of over 100%.

The opinion of Market Leaders

  1. Susquehanna: Virgin Galactic is an innovator of space technology.
  2. BofA Securities: Virgin has infinite growth potential.

iii. UBS: The potential of space tourism is such that by 2030 it will have a market of $3 billion.

Its share value had plummeted recently. Let us have a look at the reasons before moving ahead with the clinical analysis of the future of Virgin Atlantic in stock exchanges.

The above opinions made a lot of impact in the stock trading sphere favoring Virgin Galactic.

When the Stocks Went Down by 60%.

A 52-week-high average of stock trading markets plummeted by 60% in August. The events that led to a sudden drop can be summarized into three points.

  1. In the second quarter of 2020, Virgin Galactic’s revenue was zero.
  2. Its first flight was delayed.

iii. The company made a public issue of the common stock to raise funds. 

Alan Stern Aboard

Alan Stern is the leader of NASA’s mission to Pluto. He has been selected to fly aboard Space Ship II. The Association of a big name in the space industry will boost the credibility of the company in its stock trading. This will have a considerable impact on the share price of the company.

A lot of information about market fluctuations and sensible predictions can be obtained from iFOREX. 

The Last Quarter

Investors displayed tremendous optimism in Virgin Galactic. The main reason was the prediction of a boom in space tourism from many sources. The Total Addressable Market (TAM) for the company is bullish. There is a huge demand from the affluent class for space tourism. This has lately generated a very high ‘short interest’ in its shares. 

The November Boost

Financial experts have formed an opinion that Virgin Galactic is going to surge in the share market in November. This initial trend will be carried forward in the last quarter of 2020. This will result in the prices reaching very higher levels and shall encourage stock trading of the company.

A Final Trump Card

According to analyst Goldman, “Virgin Galactic has substantial upside potential in the long-term.” 

If the company can successfully launch a ship in November, it will clinch the deal for investors of the company.

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