Virgin Galactic shares rise despite a $94 million loss - what's up with that?
Published by: 10.08.2021 07:51:44Virgin Galactic Holdings Inc. said Thursday it is beginning official sales of commercial space tickets. After its initial suborbital flight, it announced "we are seeing a significant increase in interest in commercial spaceflight."
Virgin Galactic (SPCE) said their "flights to space" will have three options, with $450,000 being the cheapest option for a single seat. Virgin will also offer discounted packages for multiple seats for couples, friends or family.
What do you get for nearly £10,000,000?
Those who purchase tickets will experience a few minutes of weightlessness, where they will be able to move freely through the cabin and see the Earth from a perspective only professional astronauts can see.
"We are delighted to bring the unique experience of space tourism to the general public"
said CEO Michael Colglazier in a statement.
In July, Virgin Galactic founder Richard Branson and five crew members flew into suborbital space in the company's VSS Unity rocket. Wall Street estimates that space tourism will create an $8 billion market by 2030 and Virgin will be its "leader."
Shares rose more than 5% in value on Thursday despite a larger-than-expected quarterly loss. Virgin posted a second-quarter loss of $94 million, or 39 cents per share, compared with a loss of $72 million, or 34 cents per share, in Q2/2020. The company said its next space flight is scheduled for late September. As previously disclosed, this flight will be a paid mission by the Italian Air Force.The company said it ended the quarter with cash and cash equivalents of $552 million at the end of June. The stock increased its value by 35% this year, which is very positive, compared to the S&P 500 index 18% increase. Virgin said it continues to experience delays due to COVID-19 and that it continues to operate under strict health protocols. Despite this, it may be a good time to buy this stock as commercial flights have an interesting future according to many sources.
Source: Yahoo Finance
Image: licensed from Adobe Stock
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