Virgin Galactic Stock Soars

Virgin Galactic’s stock hit an all-time high on Friday at $29.29 in after hours trading. The stock soared by $5.63 the day the company flew SpaceShipTwo VSS Unity from its test site in Mojave, Calif. to its operating base at Spaceport America in New Mexico.

Not bad for a stock that was offered at $12 when it opened on the New York Stock Exchange last Oct. 28.

Stock prices are often based on future expectations. That’s certainly true of Virgin Galactic. The company has spent more than $1 billion over the past 15.5 years developing a suborbital space tourism vehicle that has never carried a single paying passenger. Virgin Galactic has never had an annual profit.

VSS Unity has flown two suborbital flights above 50 miles (80.4 km) since it was rolled out four years ago. The last flight was nearly one year ago. So, there hasn’t been any actual action in the sky — except for a ferry flight to New Mexico on Friday — to drive up the stock price.

Months of additional flight testing is set to take place before SpaceShipTwo VSS Unity conducts its first commercial flight with passengers. Virgin Chairman Richard Branson will be aboard that flight, which could take place before or on his 70th birthday on July 18.

Virgin says it’s got 603 passengers signed up for flights. It plans to begin selling tickets once commercial service begins at a cost higher than the current $250,000 price. The company says thousands of people have expressed interest in signing up.