Virgin Galactic Explained: Introduction to SPCE Stock Trading

Virgin Galactic Inc., a subsidiary of the Virgin Group, is the pioneer of commercial spaceflight and ranks 50th among the largest aerospace companies in the world by market capitalisation (as of 2024).

This article explores Virgin Galactic's business operations, stock performance and how to trade its stock (SPCE) price.

Main Points:

• Virgin Galactic Holdings Inc., a subsidiary of the Virgin Group, specialises in space travel services.
• Virgin Galactic is headquartered in California but operates from Spaceport America in New Mexico.
• Virgin Galactic was founded in 2004, went public via a SPAC merger in 2019, and its stock reached an all-time high of $1,256 in 2021.
• Virgin Galactic trades with the ticker “SPCE” on the New York Stock Exchange (NYSE) and online platforms like Plus500.
• Traders can speculate on Virgin Galactic stock through CFDs on platforms like Plus500.

What Is Virgin Galactic Holdings Inc.?

Virgin Galactic Holdings Inc. is a US-based aerospace company that offers space travel services to private persons, academic and scientific researchers, and public institutions. Virgin Galactic is part of the Virgin Group's portfolio of companies. The Virgin Group maintains control over Virgin Galactic through its 11.9% ownership stake explicitly held by Virgin Investments Limited. The company is dedicated to leveraging its proprietary technologies to develop commercial spacecraft to achieve suborbital science missions and space tourism. Its operations encompass the design, development, manufacturing, testing, operation, and maintenance of its spaceflight ecosystem. However, the company's primary revenue streams are tourist space trips and its ‘Future Astronaut’ membership program.

Where is Virgin Galactic Located?

Virgin Galactic is headquartered in California, USA, but conducts its operations from New Mexico, USA. The company utilises the ‘Gateway to Space’ facility at Spaceport America, the world’s first commercial spaceport. This strategic location gives Virgin Galactic a competitive edge due to the favourable weather conditions for spaceflight and the restricted commercial airspace, providing an ideal environment for space operations.

What Is Virgin Galactic's Mission and Future Plans?

The primary objective of Virgin Galactic is to provide customers with prolonged space tourist flights featuring Earth observation and zero-gravity experiences. The company is also committed to supporting scientific exploration by providing suborbital flights for researchers and scientists. Virgin Galactic intends to leverage its suborbital flight capabilities to complement these efforts and support professional astronaut training programs. The company is actively developing its next-generation spacecraft, the Delta Class and their corresponding carrier aircraft. The commencement of Delta Class spaceship testing is set for 2025, ultimately leading to commercial services' launch in 2026.

History and Key Milestones of Virgin Galactic Holdings Inc.

• British entrepreneur Sir Richard Branson established Virgin Galactic in 2004.
• Between 2010 and 2011, Aabar Investments (Abu Dhabi's sovereign wealth fund) acquired a 37.8% stake in Virgin Galactic and secured exclusive rights to launch space flights from the UAE capital.
• In December 2018, VSS Unity, Virgin Galactic's first suborbital spaceplane, conducted its first space flight.
• The following year, Virgin Galactic raised $450 million through a SPAC merger listing on the New York Stock Exchange (NYSE) and became the first publicly traded space tourism company.
• On July 11, 2021, Richard Branson became the first aerospace founder to travel into space on his spacecraft.
• The following year, Virgin Galactic announced ticket sales opening to the public, with reservation prices set at $450,000.
• Virgin Galactic inaugurated commercial spaceflight services in June 2023. By December of the same year, reservations for spaceflight grew to over 700 tickets.
• Virgin Galactic carried out its sixth commercial space trip the following year (January 2024). While the company continues the maintenance and services of VSS Unity, it has shifted its focus to Delta class vehicles and quicker launch turnover.

Virgin Galactic's Industry

Virgin Galactic operates within the industrial sector and the commercial space segment. As evidenced in the Virgin Galactic 2023 annual report, there has been accelerated growth in the commercial space market due to technological advancement, collaborative frameworks and shrinking expenditures. Consequently, increased investment has fostered the emergence of numerous companies redefining the traditional space industry segments, including human spaceflight, satellite operations, payload delivery, and launch methodologies. Furthermore, governing institutions have recognised the potential of space and are depending on the commercial aerospace sector for cutting-edge technologies to achieve their various space initiatives.

The global segment of suborbital space and tourism was valued at over $700M in 2023 and is projected at approximately $3B by 2032. While this represents an emerging market with substantial growth potential, it is also anticipated to be highly competitive.

Virgin Galactic Financial and Stock Market Performance

Virgin Galactic avoided the traditional initial public offering (IPO) route to debut on the NYSE via a SPAC merger with Social Capital Hedosophia in 2019. The stock opened at $12.01 with the ticker symbol ‘SPCE’ and reached an all-time high of $1,256 on February 4, 2021. Overall, Virgin Galactic stock declined by −92.33% in 2023.

As of August 2024, Virgin Galactic Holdings Inc. has a market capitalisation of $131.64 million, outstanding shares of 411.36 million, and a public float of $18.82 million. The company also recorded a negative earnings per share (EPS) of -$25.03.

Risk of Trading Virgin Galactic Stock

• Virgin Galactic incurs significant costs in its operations and development, negatively impacting its profitability.
• The burn rate of Virgin Galactic's cash reserve relative to its cash flow poses a significant risk to the company.
• In Dec 2023, Richard Branson stated that he had no intention to provide additional financial support to Virgin Galactic. The founder's lack of a financial backstop can influence investor sentiment and stock performance.
• Regulatory scrutiny and safety concerns can affect the company's reputation and investor confidence.
• Any setbacks or failures in Virgin Galactic’s space product launch can adversely impact the stock price.

How to Trade Virgin Galactic Stock

‘SPCE’ is the ticker symbol representing Virgin Galactic Holdings Inc. on the New York Stock Exchange and the Plus500 trading platforms.

Traders can buy or sell Virgin Galactic stock without owning the actual shares by trading Contracts for Difference (CFDs) via a CFD trading account.

By entering into a long or short position on Virgin Galactic share CFDs, traders can realise gains or losses from its upward or downward price movements based on the differences between their opening and closing CFD prices.

Trading Hours for Virgin Galactic (SPCE) Stock CFDs

On the Plus500 WebTrader platform, traders can monitor the real-time price movements of Virgin Galactic (SPCE) shares and trade them on weekdays from 15:30 PM CET to 10:00 PM CET.

*Please note that trading platform hours may vary depending on the individual operator.

Steps to Buy and Sell Virgin Galactic Shares CFDs with Plus500

To trade Virgin Galactic stock with Plus500, follow these steps:

• Open a real or demo account with Plus500 to access advanced trading tools, economic calendars and other features.
• Utilise the platform's search function to find ‘Virgin Galactic’ shares or browse the available instruments.
• Employ technical and fundamental analysis to evaluate Virgin Galactic's potential price movement.
• Specify the desired contract size and risk management parameters to protect capital.
• Place a buy or sell order based on the market outlook.
• Monitor, manage or close the trade to realise the profit or loss.

Conclusion

Virgin Galactic Holdings Inc., a subsidiary of the Virgin Group, is dedicated to leveraging its proprietary technologies and spaceflight ecosystem to develop and commercialise suborbital space flights and tourism. When evaluating trading opportunities with Virgin Galactic shares, key considerations include its innovative advancements in commercial space travel, the significant costs and financial risks associated with its operations, and the competition within the aerospace industry.

If you are interested in the rising and falling prices of Virgin Galactic shares, check out Virgin Galactic CFD at Plus500.