Virgin Galactic, founded in 2004 by billionaire entrepreneur Richard Branson, is a pioneering space tourism company seeking to provide commercial suborbital flights. After years of developing its reusable spacecraft technology, including overcoming setbacks like a fatal 2014 crash, Virgin Galactic launched its first tourist flights in June 2023. The company’s spaceship, VSS Unity, is reported to have the capacity to carry six passengers and two pilots to the edge of space, allowing customers to experience minutes of weightlessness and view the curvature of the Earth.
Virgin Galactic went public in 2019 and has continued working to make space tourism a reality after delays and uncertainties. While the long-term outlook remains speculative in this emerging industry, the company hopes to revolutionize access to space as more people dream of the unique experience of viewing the Earth from above. Despite challenges, the company maintains its ambitious vision of opening space to more people and shaping the future of commercial space travel.
But what will the future hold for this billion-dollar company and its stock price? In this article, we will explore the potential scenarios for its long-term growth.
Key Takeaways:
- We created three forecast scenarios for Nvidia’s potential price, each with a different annual growth rate: 5% yearly growth, historical S&P 500 ROI (11.8%), and historical Nasdaq-100 ROI (17.5%).
- Based on 5% annual growth, Virgin Galactic’s stock could reach $5.23 per share by 2040 and $8.51 per share by 2050.
- Using the S&P 500’s historical annual return of 11.8%, the stock may reach $15.19 per share by 2040 and $46.33 by 2050
- With the Nasdaq-100’s historical 17.5% annual return, the stock could hit $35.37 per share by 2040 and $177.40 by 2050.
- Key growth drivers that could catalyze high growth include expanding into new revenue streams beyond space tourism, leveraging its partnerships and brand strength.
Here’s an overview of Virgin Galactic stock’s price prediction under different growth scenarios.
2025 | 2040 | 2050 | |
---|---|---|---|
Virgin Galactic Stock Forecast ( 5% yearly growth ) | $ 2.39 | $ 5.23 | $ 8.51 |
Virgin Galactic Stock Forecast ( S&P 500 historical 11.8% ROI) | $ 2.55 | $ 15.19 | $ 46.33 |
Virgin Galactic Stock Forecast ( NASDAQ historical 17.5% ROI) | $ 2.68 | $ 35.37 | $ 177.40 |
*Based on the SPCE stock price of $2.28.
Virgin Galactic’s stock price history
Virgin Galactic’s volatile stock debuted on the NYSE at $12.34 per share in October 2019, gaining momentum and peaking at $42.49 in February 2020 after successful test flights and a NASA partnership.
However, COVID-19 plunged the shares to $14.21 in May 2020 as operations were delayed. Then a recovery followed, with the stock finishing 2020 at $33.51 as flights resumed. Early 2021 brought a new high of $62.80 as Virgin Galactic announced 2022 commercial launches and a Rolls-Royce collaboration.
However, disappointing Q4 results and flight delays sank the shares to $23.95 in March 2021. The share price fluctuated, lifted to $35.44 by June 2021 after FAA approval for commercial flights. However, concerns around safety, profitability, and competition eroded confidence over time.
The stock price ended 2023 at $2.50, down 54.7% from the previous year, and since the start of 2024, the share price has tumbled below $2.28 per share amid lawsuits, investigations and cancellations.
Virgin Galactic stock forecast for 2040
What will Virgin Galactic stock be worth in 2040? That’s the billion-dollar question for many investors who are fascinated by the prospects of commercial space tourism. To answer this question, we will use three different scenarios based on different assumptions and growth rates, and also calculate them using our profit calculator to estimate how much profit you can make investing in the company in terms of ROI.
Let’s start off with our most pessimistic scenario and assume that Virgin Galactic will grow at about a 5% annual rate in the coming years. Using this growth rate, we can project the future stock price of 2040, assuming that the company maintains that growth trajectory.
Based on this scenario, Virgin Galactic’s stock price could reach $5.23 by 2040, which represents a 129.39% increase from the current price of $2.11.
Another way to estimate the future stock price of the stock is to use the historical average annual return of the S&P 500, a widely used benchmark for the US stock market. This scenario implies Virgin Galactic’s stock price could reach $15.19 by 2040.
Finally, let’s use the historical average annual return of the First Trust NASDAQ-100, an index that tracks the performance of tech companies listed on the NASDAQ stock exchange. The index boasts an average annual return of about 17.5% over the past 20 years.
So, using this growth rate, we can assume a 2040 forecast of $35.37, which is over 15 times the current price.
Virgin Galactic stock forecast for 2050
To make a prediction for Virgin Galactic stock price in 2050, we are going to use the same three scenarios as for 2040, but this time, we will extend the time horizon by 10 extra years.
Based on the first scenario, the stock is predicted to reach $8.51 by 2050, a 272.37% increase from the current price if it follows a 27-year time frame with 5% ROI per year.
If the stock were to follow the multi-decade average return of the SP&500 Index, Virgin Galactic stock could reach $46.33 by 2050.
The third scenario forecasts a bullish price of $117.40 by 2050 if the stock matches a robust 17.5% average annual return of the QTEC Index.
Virgin Galactic’s potential catalyst for growth
Virgin Galactic has several potential catalysts that could drive its growth and boost its stock price in the coming decades. A major one is the successful commencement of commercial space flights, which are planned to begin soon after test flights are completed.
Virgin has reported to have over 600 customers lined up, and willing to pay $250,000 per ticket for the experience. There’s no doubt the company revenue and demand would increase if flights meet the required expectations and reliability
Beyond space tourism, the company also aims to expand into new services like orbital flights, research, satellite launching, and point-to-point hypersonic travel. One aspect that demonstrates this potential is its partnership with NASA in 2022. By leveraging its strong brand presence, Virgin could expand beyond Western markets and into other regional markets as well.
A view of Virgin Galactic’s VSS Unity spaceship. Image source: Pinterest
Additionally, continued innovation and differentiation have given Virgin an edge over most competitors, apart from SpaceX, which still operates privately, although there’s been a lot of speculation about SpaceX’s potential IPO. Virgin has reportedly invested heavily in R&D for new technologies and products. This can be gauged when looking at the company’s unique carrier aircraft, and spacecraft designs that provide flexibility and efficiency.
According to Morgan Stanley, the global space economy could reach $1.4 trillion by 2040, and Virgin Galactic is poised to capitalize. However, clear regulations and standards are needed to address technical hurdles, safety issues, and legal concerns.
Virgin Galactic price prediction for 2025
According to our algorithm, Virgin Galactic stock could reach $20.88 by the start of 2025, which is a 57.34% increase from the current price of $2.31.
The bottom line
While Virgin Galactic’s goal to open space travel to regular people is exciting, the company faces big challenges to make money from it long-term. Its stock price has been highly volatile amid concerns over delays, safety issues, and profitability.
However, while growth projections based on historical returns are optimistic, the reality is that Virgin Galactic is still in the early stages as a startup in an untested industry.
Even as it is almost ready to operate, the future is still very uncertain. Demand for $250,000 tickets could fall if the ride is underwhelming or, as many expect, disaster strikes.
Ultimately, the company is a high-risk, speculative investment at this stage. While the company’s ambitions to open space access have strong appeal, they have much left to prove. Only time will tell if Virgin Galactic can deliver on its promise and reward early shareholders.
If you want to learn more about the long-term prospects of other major tech companies, check our articles on Tesla, Microsoft, Apple, and Amazon.
Source: https://coincodex.com/article/36517/virgin-galactic-stock-forecast-2040-2050/