Where Will Virgin Galactic Stock Be in 5 Years?
With its shares down roughly 82% over the last five years, Virgin Galactic (NYSE: SPCE) has disappointed its early investors. The ambitious space tourism company has faced operational delays, cash burn, and general uncertainty about the viability of its business model. Will the situation improve over the next five years, or will the stock continue to crash and burn? Let's dig deeper to find out.
Virgin Galactic is a pioneer in a brand-new industry: space tourism, which involves transporting high-net-worth individuals to the edge of space to enjoy a brief period of weightlessness and spectacular views. No one knows for sure what this opportunity will be worth over the coming years. But UBS analysts believe it could grow to $4 billion by 2030 as companies invest more capital into their technical capabilities.
Virgin Galactic is an early mover. In late June, the company completed its first commercial spaceflight with six paying customers -- joining a small group of companies, including SpaceX and Blue Origin, which have also accomplished this feat. But despite achieving this long-awaited goal, Virgin Galactic is still yet to create sustainable value for shareholders.
Source Fool.com
