Founded in 2004, Virgin Galactic is still the only publicly traded company with ambitions to make space tourism available on a global scale. The company's stock has suffered mightily as a result of negative risk sentiment and investor capitulation in a space industry still in its infancy. The share price is nearly 90% below historical highs. Recently, however, the company reported a number of positive news items which resulted in a nearly 30% rebound:
- Virgin Galactic reported a deal with aerospace giant Boeing to build a fleet of next-generation ships. The value of the contract was not publicly disclosed;
- The new ships will, starting in 2025, replace the VMS Eve carrier aircraft (known as the 'mother'), which was being developed by Scaled Compisites. Virgin Galactic uses the aircraft to launch spacecraft instead of high-cost vertical-launch rockets. Virgin Galactic plans to launch new 'Delta' class spacecraft in 2025;
- According to the company's CEO, Michael Colglazier, the new spacecraft will be "faster to produce, easier to maintain and will fly more missions each year". The company ultimately aims to fly 400 missions a year, from its Spaceport America base, and the new fleet will help it scale its operations faster and potentially impact margins;
- Both the VMS Eve (the launch vehicle) and the VMS Unity spaceplane are at the company's manufacturing facility in Mojave, California, where they are currently undergoing maintenance. The company confirmed that it intends to make the first commercial missions available in the first quarter of 2023.
Virgin Galactic SPCE.US shares, W1 interval. The stock has experienced massive volatility in the past, with the last price peak occurring in July 2021 when the company's ship carried billionaire and Virgin Group owner Richard Branson into space ahead of Jeff Bezos.Historically viewed, current price levels, after massive declines, may be attractive to long-term investors who believe in the success of the company's scaling of sub-orbital tourism services. However, the company is clearly weighed down by the global retreat of investors from risk and companies that are not yet generating profits. Source: xStation5
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