Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Virgin Galactic Will Take Justin Bieber to Space—and It’s a Damn Good Investment

Companies / Tech Stocks Oct 26, 2019 - 03:14 PM GMT

By: Stephen_McBride

Companies By Justin Spittler : Rumor has it, pop star Justin Bieber and actor Leonardo DiCaprio are taking a trip to outer space...

It sounds like a sci-fi movie, but have you heard of Virgin Galactic? Founded by British billionaire Richard Branson, the company has built the world’s first spaceship.

Let me be clear...

It’s not just an idea. It’s not just a concept. It’s not just a glorified airplane.

It’s a real, working SPACESHIP… tested and approved by the US Federal Aviation Administration.



Last December, this spaceship completed a successful test flight with two astronauts and a passenger on board. It blasted to the edge of earth’s atmosphere, 51.4 miles up… then safely landed just outside Orlando, Florida.

Now, the company is preparing to launch the first commercial space flight in history, which is expected to take off as soon as 2020.

For the first time, civilians will have a chance to shuttle around in outer space.

The good news is you can be one of the first investors to buy the world’s first spaceship stock. And as I’ll explain… it’s an investment opportunity you should take seriously, just like these three I told you about before.

Virgin Galactic is an ultra-luxury tourism company, for now...

Virgin Galactic has already sold out its first batch of 600 flight tickets for a hefty fare of $250,000… collecting over $80 million. Another 1,500+ rich folks are on the waiting list.

As I mentioned before, the first passengers include celebrities like pop star Justin Bieber and actor Leonardo DiCaprio…

Which led investors to label Virgin Galactic an “ultra-luxury tourism company.” I’ve heard folks compare it to companies renting 300-foot-long yachts or private islands.

But make no mistake, Virgin Galactic’s ships are much more than a playground for rich people. That’s just step one in its plan to disrupt the space industry.

Space tourism is just a testing ground

Virgin Galactic has a unique business model that will let it earn hundreds of millions of dollars right out of the gate.

As a testing ground, it will sell its space flights to very rich folks as an expensive vacation.

And believe it or not, there’s a huge market for this service.

The company says it needs to fly only 1,000 people a year to be a viable business. As I mentioned, there are already 1,500 on its waitlist… and the company has barely marketed the concept at all.

If Virgin Galactic pulls this off, it will rake in $250 million in its first year as a public company. That’s 2X more than Amazon and Apple earned in their first years combined, as you can see below…



While the company rakes in hundreds of millions of dollars by pleasing ultra-rich folks, it will quietly start preparing for the next phase of space travel.

Virgin Galactic is coming to disrupt dreaded long-haul flights

Virgin Galactic sees an opportunity to disrupt long-haul travel by flying folks through outer space.

These flights can potentially get you from, say, New York to Tokyo in two hours… as opposed to the 14 hours it takes today. And the company is making great strides toward it.

Virgin Galactic has recently joined forces with Boeing, the world’s largest plane-maker. They are developing a commercial spaceship that will travel at 5X the speed of sound… 7X faster than today’s commercial planes.

Within a decade, space travel will be a $23 billion industry and threaten airlines, according to UBS. And Virgin Galactic is positioned to be the unquestioned leader in this space.

Virgin Galactic is quietly tapping into an $800 billion industry

Air travel is an $800 billion a year industry. UBS estimates the “space industry” will be worth $805 billion by 2030. And space travel is just a tiny part of it.

Virgin Galactic is planning to use its spaceships to conduct science experiments, launch small satellites, and bring other cargo to space.

The possibilities are endless.

For example, president of Virgin Galactic Will Whitehorn thinks we could put computer servers powering the internet in space quite easily.

You see what’s happening?

Most investors dismiss Virgin Galactic’s space flights as a gimmick. But the company is actually an up-and-coming space giant.

How to buy the world’s first commercial space stock

Earlier this year, Virgin Galactic announced it would merge with Social Capital Hedosophia (IPOA), a publicly traded shell company. The company will buy a 49% stake in Virgin Galactic.

That makes Social Capital Hedosophia the first publicly traded space stock available to the public.

I have to warn you, though.

The upside of this company is limitless. You would be buying into the very early stage of the company as well as the commercial space industry.

Social Capital Hedosophia is worth a little shy of a billion today, and it’s going after an $800 billion industry. There’s plenty of room for the company to grow 10X or more.

It could be like investing in Boeing right after it rolled the first Boeing 707 out of the hangar in 1957 … a moment that changed aviation for good.

That said, Virgin Galactic has a very small margin for error. Any accident threatening human lives could send Virgin Galactic stock plunging down.

My recommendation: Put a small position in this stock, just like I did a couple of months ago. Make it small enough that big a drop in its price wouldn’t hurt you badly.

The Great Disruptors: 3 Breakthrough Stocks Set to Double Your Money"

Get our latest report where I reveal my three favorite stocks that will hand you 100% gains as they disrupt whole industries. Get your free copy here.

By Justin Spittler

http://www.riskhedge.com

© 2019 Copyright Stephen McBride - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in