In the time since Virgin Galactic Holdings Inc. (NYSE: SPCE) went public as the first publicly traded space tourism company, its stock has been volatile. Spaceflight has compelled many investors, but SPCE stock is risky. The company develops commercial spacecraft for scientific missions and space tourism in an intensifying race to become the first company to offer broad space travel. Virgin Galactic has already conducted successful test flights and has had passengers on some of its flights. When these flights become more affordable because of scale, the company may generate strong demand.
Ready to jump on board space tourism? Virgin Galactic could be a great stock pick. Read on to learn how to buy Virgin Galactic now.
How to Buy Virgin Galactic (SPCE) Stock
Whether you see Virgin Galactic as your prime opportunity to invest in the exciting future of space travel or you feel as if its recent price explosion is an opportunity to turn a quick profit in a single trading session, the first thing you need to do is learn the basics of buying stocks.
Pick a Brokerage
When you're on the hunt for a brokerage, consider what kind of fees it charges, which kind of equities it has access to (such as stocks, exchange-traded funds (ETFs), cryptocurrencies, options) and the educational and research features it offers its investors.
Decide How Many Shares You Want
The number of shares you want comes down to personal preference. If you're looking for a short-term trade opportunity, focus on the technical analysis of the stock's price history. If you view SPCE as a long-term growth opportunity, focus on a fundamental analysis of the potential future payoff of the company's current investments in space travel.
Investors may have an easier time buying more shares if they view SPCE as a short-term opportunity. Day traders can capitalize on short-term stock price movements without worrying about long-term prospects. The longer you hold onto SPCE stock, the riskier can become. This factor can influence how many shares you purchase.
It is a good idea to assess your portfolio and allocate a small percentage of your money toward SPCE if you want it in your portfolio. Turning SPCE into a top-heavy position in your portfolio is incredibly risky, especially if the spaceflight company doesn't live up to its expectations.
Choose Your Order Type
After you've done your research and know how many shares you want, it's time to place your order. You can either conduct a market order or a limit order. Market orders go through right away at the current price. Limit orders go through when the stock reaches the designated price point that you decided on.
Execute Your Trade
Once you've chosen the number of shares and the order type, all that's left is placing the order. At this point, the trade order is in the market and you're waiting for confirmation from your broker when the trade has been executed. Market orders go through within seconds, while limit orders can take longer, depending on when the stock reaches your desired price.
Best Online Stock Brokers
To start researching which broker is best for your trading style and experience level, learn more about Benzinga's best brokers and check out these recommendations below:
Virgin Galactic Stock History
Virgin Galactic had its initial public offering (IPO) on Oct. 28, 2019. Since then, volatility has been the name of the game. The company went from about $10 per share at its IPO to just below $60 per share at its peak. The stock has been a roller coaster, but it hasn't been going well for long-term investors in recent months. Virgin Galactic is now a penny stock that fell below $2 per share for the first time in 2023.
Why? Virgin Galactic has had to delay proper flight operations on numerous occasions. There has been a fatal accident involving SpaceShipTwo, piloted by two test pilots — the co-pilot was killed and the pilot was severely injured when the vessel broke up mid-flight. Additionally, the company has always been behind the eight-ball in terms of timing because the technology is extremely advanced.
Pros to Buying Virgin Galactic Stock
These are some of the perks of buying Virgin Galactic stock that can play out and reward investors.
- Experience: Unlike its major competitors, SpaceX and Blue Origin, Virgin Galactic is owned by a company with extensive experience in aviation. The experience gave Virgin Galactic a head start in assembling a team of top-level aerospace experts for research and development.
- Advanced technology: Using spacecraft for hypersonic intercontinental travel can give Virgin access to a broader customer base than just the few who would be able to afford space travel.
- Proven concept: Virgin Galactic has flown people into space. While these flights are expensive, Virgin Galactic proved their viability which is a step in the right direction.
Cons to Buying Virgin Galactic Stock
Virgin Galactic stock has several advantages, but the disadvantages are notable. These are some of the risks to consider.
- Virgin Orbit filed for bankruptcy: SPCE investors are nervous about how the bankruptcy will affect Virgin Galactic. The company can pay off richly in the best-case scenario, but there are many hurdles blocking that best-case scenario from happening.
- The company burns through cash: Virgin Galactic is not profitable and depends on funding to stay afloat.
- Space flights are expensive: It's going to cost a lot of money if someone wants to fly in space. Space tourism does not have the same appeal or scaling as commercial flights.
Make Virgin Galactic Your Next Growth Stock
Virgin Galactic could be your opportunity if you want to get on the recent squeeze rally, but timing is key on shorter-term swing trades.
Even if Virgin doesn’t end up first in the space race, the company's decades of research and development ensure that it won't be far behind and could continue to be a strong industry player.
Frequently Asked Questions
Is Virgin Galactic hosting space flights?
Yes, Virgin Galactic is hosting space flights, but they are expensive. Ticket prices are roughly $450,000.
Are space flights expensive?
Space flights are very expensive. Virgin Galactic tickets currently cost $450,000 apiece. Richard Branson hopes to bring this price down as space flights gain demand.
Is SPCE a good long-term stock?
SPCE is a risky long-term stock with significant uncertainty. Investors may want to stay on the sidelines and see how it plays out. It’s only an idea to consider for investors with maximum risk tolerance levels.