Table of Contents
What is Virgin Galactic?
Η Virgin Galactic (NYSE: SPCE ) is a publicly traded company founded by the world-renowned entrepreneur and visionary Richard Branson. While operating in an industry that is still in its infancy, the company has managed to establish itself ahead of competitors through strides made in research and development. Virgin Galactic is well positioned to realize its full potential and has a solid plan to diversify into different subsectors of space travel if opportunities arise.
Why Virgin Galactic Holdings Matters
According to estimates, space travel could be a $20 billion market by 2030. In a field that lacks competition, Virgin Galactic is well positioned to establish itself as a major player. Virgin Galactic is pricing commercial space travel tickets at $250.000. With each of the spacecraft accommodating up to six passengers, demand for seats on the first available flight is already exceeding expectations, with more than 8.000 people reserving seats as of March 2020.
The main focus of SPCE will be sub-orbital tourism. Using a combination of traditional aircraft and spacecraft travel, Virgin Galactic will use a low-cost approach to getting people into space that sets it apart from competitors. Once the aircraft reaches sufficient altitude, it will separate from the spacecraft, which will then fire its rockets as it ascends into microgravity for a few minutes before heading back to earth.
Both the spacecraft and the aircraft will land again at the spaceport in New Mexico, and all aspects of the operation will aim to maximize the number of parts that can be reused.
Freedom 24 | How To Buy Shares Online [Guide 2022]
Virgin Galactic Holdings Outlook
Space travel and exploration is no longer a government-dependent industry. Investment from the private sector has opened up the possibility of space travel in the not-too-distant future, a reality for those with the interest and money to do so. As more research and testing is completed, operating costs will continue to decrease. In turn, ticket costs can be reduced without affecting margins. This reduction means that space travel is likely to be open to even more people than is currently possible.
While suborbital tourism is the main focus of current operations, Virgin Galactic's three-phase approach allows for plenty of growth in the future. Phases 1 and 2 involve commercialization and then spaceflight expansion as summarized above. However, phase 3 plans to expand the companies operation into a new subsector: point-to-point travel. This Phase 3 point-to-point approach will seek to develop technologies to fly civilians point-to-point on earth much faster than is possible.
This will be done by flying either much higher in the atmosphere than today's airplanes or even in space. This technology has garnered the interest of many stakeholders, including NASA who signed an agreement with Virgin Galactic in May 2020. The Space Act agreement was a major step forward for Virgin Galactic and reaffirmed the confidence that stakeholder groups have in company. Virgin Galactic president Chamath Palihapitiya said he believes this technology is closer than most people think, estimating that point-to-point travel at speeds much faster than Concorde could be just 5-10 years away.
Where to buy shares of Virgin Galactic Holdings ( SPCE ).
Η freedom24 is an Online Broker that gives you access to more than 40.000 investment products of stocks, ETFs, Bonds, Futures & Options with zero transaction fees.
It is overseen by regulators such as CySEC, operates under MiFID II rules and is a member of Freedom Finance Holding Group which is traded on NASDAQ.
Of particular interest is the possibility to participate in company IPOs, as well as the D Account Savings Account with a 3% annual interest rate.
It is an excellent choice for long-term investors who want to make few moves due to its special system of charges and its security.
