What happened
Shares of space tourism company Virgin Galactic (SPCE 3.15%) jumped as much as 12.7% in trading Wednesday ahead of the company's flight tomorrow. At the close of trading, shares were up 9.2%.
So what
On Thursday, June 29 at 11 a.m. ET, Virgin Galactic will launch its first commercial space flight. Three passengers from the Italian Air Force and National Research Council will be aboard to perform scientific research. This will be the first paid flight and follows about two years of delays for Virgin Galactic.
The next flight will be in August, and then the company expects to complete monthly space flights. Each flight could bring in about $2 million in revenue, which isn't enough to get the company to profitability, but it will lay the groundwork for future spacecraft like the Delta class that's currently under development.
Now what
Before flights, Virgin Galactic's stock often rises sharply only to give back those gains in the following days. I wouldn't be surprised to see that happen this week.
And keep in mind that Virgin Galactic needs around $2 billion in funding to get Delta spacecraft built and operational starting in 2026. That's a long road before the company is financially successful.
While today's move may not be sustainable, that doesn't mean this isn't an exciting time for Virgin Galactic. The company could change how we think about space, and that could be a valuable position to be in long term.
