Launched in 2004 – Virgin Galactic is a futuristic innovator that plans to introduce ‘tourist flights’ to outer space.
The company is still at the very start of its technological journey and thus – is yet to generate a single penny in operating profit. With that said, many investors can look beyond this in the case of Virgin Galactic, as the stock is one for the future.
If you’re based in the UK and looking to buy Virgin Galactic shares online – this guide will show you everything you need to know.
We’ll walk you through the process of finding a suitable UK broker, making a deposit, and finally – buying Virgin Glaacxtic shares from the comfort of your home.
- 1 Step 1: Find a UK Stock Broker to Buy Virgin Galactic Shares
- 2 Step 2: Research Virgin Galactic Shares
- 3 What is Virgin Galactic?
- 4 Virgin Galactic Share Price History
- 5 Virgin Galactic Shares Dividend Information
- 6 Should I Buy Virgin Galactic Shares?
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Trade or Buy Virgin Galactic Shares
- 9 Virgin Galactic Shares Buy or Sell?
- 10 The Verdict?
- 11 eToro – Buy Virgin Galactic Shares With Zero Commission
- 12 FAQs
If you want to buy Virgin Galactic shares online – you will need to find an FCA-regulated broker that gives you access to the New York York Stock Exchange (NYSE).
This is the easy part – as there are hundreds of such brokers active in the UK. However, you need to dive a little bit deeper before opening an account. By this, we mean that you need to explore metrics surrounding fees, commissions, payment methods, customer support, and user-friendliness.
To save you from countless hours of mundane research – below you will find a small selection of hand-picked stock brokers that allow you to buy Virgin Galactic shares.
1. eToro – Buy Virgin Galactic Shares With Zero Commission
eToro is an online stock broker that also offers ETFs, cryptocurrencies – and heaps of CFD instruments. In the case of its stock offering, the platform gives you access to over 1,700+ shares. This covers 17 markets – including the London Stock Exchange (LSE), NASDAQ, and the NYSE. As such, you can buy Virgin Galactic shares at the click of a button.
All you need to do is quickly open an account, deposit some funds and then decide how many stocks you wish to add to your online portfolio. The most appealing part of the process is that eToro does not charge any share dealing fees. Additionally, the platform does charge any ongoing maintenance fees. This makes eToro the lowest cost broker in the UK share dealing scene. In terms of the minimum investment, this stands at just $50 (£40).
You will, however, need to deposit a minimum of $200 (£160) when opening an account. Nevertheless, eToro offers a variety of trading features and tools that are aimed at the newbie investor. For example, you can elect to copy an experience share investor by mirroring their portfolio like-for-like. Every time the investor buys or sells a stock – your portfolio will automatically do the same. There is also an abundance of educational tools – including handy guides and webinars.
If you like the sound of ‘social investing’, eToro allows you to discuss trading insights with other members of the site. This operates like a social media platform – insofar that you can post, reply to, and ‘like’ conversions. In terms of payments, eToro supports UK debit/credit cards, e-wallets like Paypal and Skrill, and a manual bank transfer. Your money is 100% safe at this broker, as eToro is partnered with the FSCS (up to £85,000). Additionally, the platform is licensed by the FCA, CySEC, and ASIC.
- User-friendly online stock broker
- Buy shares without paying any commission or share dealing charges
- 800+ shares listed on UK and international markets
- Buy shares or trade CFDs
- Social and copy trading tools
- Accepts PayPal
- Mobile trading app
- Holds an FCA licence
- Not suitable for advanced traders that like to perform technical analysis
75% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Virgin Galactic Share CFDs With Zero Commission
Are you looking to place more sophisticated trades from the comfort of your home? If so, it is well worth exploring what Capital.com has to offer. In a nutshell, the online trading platform is a specialist CFD broker. This covers thousands of financial instruments across heaps of asset classes. For example, you can trade CFDs via indices, forex, cryptocurrencies, commodities, and of course – shares. Regarding the latter, this includes a wide variety of markets – including the NYSE.
As such, Capital.com gives you full access to Virgin Galactic shares without you needing to take ownership of the underlying stock. Instead, you need to determine whether you think the shares will increase (buy order) or decrease (sell order) in value. This is something that you won’t find at a traditional brokerage firm – as you can only buy shares and profit when the stocks go up in value. But, with Capital.com, you also have the option of profiting if and when Virgin Galactic stocks decrease.
What we also like about the CFD structure at Capital.com is that you can apply leverage. If, for example, your a standard UK retail client looking to trade Virgin Galactic share CFDs – you can are only required to put up a 20% margin. In Layman’s terms, this means that a £500 buy or sell position would require an account balance of just £100. Best of all – each and every marketplace at Capital.com – including that of Virgin Galactic CFDs – can be traded commission-free.
Instead, the only fee that you need to pay is that of the spread. If you like the sound of trading Virgin Galactic CFDa at Capital.com – the provider requires a deposit of just £20. This can be facilitated with your UK debit/credit card or an e-wallet like Paypal. If you decide to perform a bank transfer, not only will this take several days to arrive but you will need to meet a higher minimum at £250. Finally, Capital.com is licensed by the FCA.
- Trading on hundreds of US and UK shares
- Educational app for new traders
- AI assistant identifies your weak points
- Trade ideas generated daily
- Excellent charting and analysis interface
- 100% commission free trading
- Cannot build custom trading strategies
72.6% of retail investor accounts lose money when trading CFDs with this provider.
When making an investment into large-cap blue chip stocks like Apple, Amazon, or IBM – the decision-making process is relatively straight forward. By this, we mean that you are investing in companies that not only have a proven business model and long-standing track record, but they are market leaders in their respective fields.
This is in the stark contrast to a stock like Virgin Galactic. After all, the firm is involved in an industry that at present – is completely unproven. Instead, there is no guarantee that space tourism will ever reach the mass markets. Even if it does, it remains to be seen whether Virgin Galactic will be the firm to make it happen.
As a result, it’s absolutely crucial that you perform some in-depth research prior to taking the plunge with this stock. To help you along the way, the following sections will outline the key points that you need to be aware of before you buy Virgin Galactic shares.
What is Virgin Galactic?
Virgin Galactic is the latest brain wave of Virgin Group founder Richard Branson. In a nutshell, the company’s vision is to bring space travel to the mass market. Well, by the mass market, we mean those that are able to afford the rumoured ticket price of $250,000.
For this, you will board the VSS Unity alongside 5 other space tourists. You will be catapulted into outer space – a mere 60 miles above planet Earth. Once there, you will have the opportunity to unfasten your seat belt and float at zero-gravity.
According to the Guardian newspaper – Virgin Galactic has already signed up 600 ‘paying’ customers. By our estimation, this means a secured inflow of $150 million. The same article notes that the firm has also received strong interest from 400 additional clients.
If translated into paying customers – this would net a further $100 million. However, it is important to note that Virgin Galactic’s plan to launch its first commercial flight this year have since been delayed. Blaming the delay on the coronavirus pandemic, the first slight is now scheduled for some time in 2021.
Officially launched in 2014 – it wasn’t until late 2019 that Virgin Galactic opened its doors to outside investors. It’s initial public offering (IPO) – which saw its shares listed on the NYSE, raised $720 million in capital. In comparison to other IPOs that were initiated in earlier in the year, this is somewhat small-fry. However, Virgin Galactic actually managed to raise 20% more than it had originally hoped for.
At the time of the IPO, Virgin Galactic was (and arguably still is) defined as a ‘blank check’ company. Put simply, this means that investors were buying shares in a company that was yet to generate a single penny in revenue – let alone profit. Nevertheless, the Virgin Galactic share price was initially $10. Over the course of the following four months, Virgin Galactic shares soared – with the stocks hitting all-time highs of just over $37 in February 2020.
This represents a net return of more than 270% for those that got in on the IPO action. However – and much like the rest of the US and global stock markets, Virgin Galactic shares were heavily impacted by the fears and uncertainties of the pandemic. In fact, just a fours weeks later the shares dropped back to just over the $10 mark. There are two positives to note about the firm’s price action since its rapid 1-month decline.
Firstly, the shares managed to defend themselves by staying about the initial IPO price of $10. This is welcome news when the wider markets were experiencing mass hysteria. Secondly, Virgin Galactic shares have since recovered some of these losses. At the time of writing, the shares are valued at just over $21 each. This represents a recovery of almost 100% since March. In terms of market capitalisation, the stocks are collectively worth just under $5 billion as of October 2020.
Virgin Galactic does not pay dividends and likely will not do so for many, many years. After all, this growth stock is effectively a blank check company. Although it has secured 600 confirmed bookings – the firm is yet to make any profit.
On the contrary, Virgin Galactic is reporting losses – and will likely do so for the foreseeable future. This is common practice with up and coming tech firms anyway. For example, although Tesla has been in possession of a multi-billion pound valuation since it went public in 2010 – the electric car maker only recently turned a profit.
Without attempting to sound trite – the answer to this question is somewhat simple. That is to say, do you believe that Virgin Galactic will be successful in its desire to bring space tourism to the wider markets? If so, then this growth stock could be a good addition to your wider portfolio. Be careful to keep stakes to a minimum, not least because there is no guarantee that Virgin Galactic will one day make it big.
If you’re still sitting on the fence as to whether or not you should buy Virgin Galactic shares – below you will find some important metrics to ponder over before parting with your money.
Catch This Company While it is Still Super-Young
Virgin Galactic is the epitome of a young tech stock. That is the say, the firm is operating in a new, exciting, and cutting-edge industry that could one day take the world by storm. After all, it is offering affluent consumers the ability to engage in space tourism. On the one hand – and as noted above, there is no guarantee that Virgin Galactic will be a success.
However, if it is, it would be reasonable to suggest that the company will be worth significantly more than its current market valuation of $4.6 billion. This is especially the case if the firm is able to one day bring its service to the mass consumer market by offering a more affordable price.
You Have a Second Chance to Buy the Shares at a Huge Discount
Those that missed out on the Virgin Galactic IPO were likely kicking themselves months later when the stocks hit $37. After all, the IPO valued the shares at just $10. However, with the pandemic putting a huge rail block on Virgin Galactic’s progress, the shares have since retreated.
Had you jumped on board in March of this year, you would have paid just above the initial IPO price of $10. The shares are higher as of October 2020 at $21, albeit, this is still much lower than the aforementioned all-time high of $37. As such, if you do believe in the Virgin Galactic project, now is the time to enter the market if you want to buy the shares at a discount.
600+ Confirmed Customers
Even though it will be until at least 2021 when the first Virgin Galactic commercial flight takes off, the firm has already secured more than 600 paying customers. As noted above, this translates into a revenue of £150 million. It goes without saying that these paying customers are high-net-worth individuals that are interested in cutting-edge innovation. If and when the first commercial flight does take off, this could spur a whole new wave of paying customers for Virgin Galactic.
No Revenue in Q2 2020 and Losses Continue to Mount
On the one hand, it goes without saying that new tech companies are known to burn through cash for many, many years after launching. In this sense, Virgin Galactic is no different. For example, its Q2 2020 earning report published losses of $54 million. These losses stood at $53 million and $55 million in the two quarters prior. With that said, Virgin Galactic did not report any revenues at all in Q2 2020 – meaning that it had incoming free cash flows to help offset its losses.
New Bookings Begin to Cool-Off
Virgin Galactic’s most recent earnings report also noted that new bookings amounted to just under 300. This is down considering from the previous quarter which stood at about 400 new bookings. With that said, it’s likely that the drop-off was owed largely to the wider uncertainties of the pandemic.
Crucially, it is important to note that these new bookings are not confirmed and paid. On the contrary, Virgin Galactic is asking for a deposit of just $1,000 to secure these bookings. As such, it is reasonable to suggest that many of these bookings might not translate into fully-fledged, paying customers.
Billionaire Space Race is Hotting up
The ‘Billionaire Space Race’ is a term widely used to refer to the three key players that are looking to capitalise on the space tourism phenomenon. On top of Virgin Galactic, this also includes SpaceX and Blue Origin. The former is backed by Tesla and Paypal guru Elton Musk, while the latter is the brainchild of Amazon founder Jeff Bezos.
With this in mind, Virgin Galactic has some very serious competition in front of it. Although neither of its two main competitors are public companies – they are backed by firms with huge cash reserves. Furthermore, and perhaps most important, NASA awarded three commercial contracts worth a total of $14 billion in 2016 to three entities.
While this included SpaceX – Virgin Galactic did not get a look in. Ultimately, the key point here is that while space tourism looks set to become a substantial industry in its own right in the near future, Virgin Galactic isn’t the only company looking to dominate. This once again illustrates that the stock is potentially a high-risk, high-reward investment.
Step 3: Open an Account and Deposit Funds
As per the sections discussed above, there is a lot to think about before you proceed with a Virgin Galactic share purchase. With that said, if you’re ready to take the plunge and wish to make an investment right now – you will first need to open an account with your chosen stock broker. Irrespective of which share dealing account you decide to open – the end-to-end process is relatively straight forward.
Nevertheless, if you’ve never traded online before, below we outline the steps required with top-rated UK broker eToro.
First and foremost, head over to the eToro website via your desktop or mobile device and proceed to open an account. The FCA broker will ask you to enter some personal information, which includes your:
- Full name
- Date of birth
- Home address
- National insurance number
- Contact details
- Username and password
All online brokers that are licensed by the FCA – including that of eToro, will require you to bypass a quick KYC (Know Your Customer) process.
This simply requires you to upload a copy of your passport/driver’s license and a proof of address. The latter can be a recently issued utility bill or bank account statement. Once submitted, eToro is normally able to validate the documents in a few minutes.
Note: You can upload the above documents at a later date if you do not plan to deposit more than $2,250 (about £1,800).
When it comes to funding your eToro account, you’ll need to add at least $200. You can do this instantly with a UK debit/credit card or e-wallet (Paypal, Skrill, Neteller). It’s best to avoid a bank transfer if you want to buy Virgin Galactic shares straight away, as it can a few days for the funds to arrive.
Now that you have added some money to your eToro brokerage account, you can buy Virgin Galactic shares. The easiest way to do this is to enter ‘Virgin Galactic’ into the search box and click on the corresponding result.
Then, click on the ‘Trade’ button.
An order box for Virgin Galactic shares will then populate. Here, you need to enter the amount that you wish to buy – in US dollars. The minimum is $50 – which is about £40.
To complete your commission-free investment, click on the ‘Open Trade’ button.
Market commentators appear to be sitting on the fence when it comes to assigning a buy/sell rating for Virgin Galactic. On one side of the argument, proponents of the company note that Virgin Galactic represents a classic tech growth stock that could one day be worth significantly more than its current $4.6 billion valuation.
At the other end of the spectrum, opponents of the stock will argue that Virgin Galactic’s business model is still unproven and that its lack of sizable orders should be a concern for investors. As a result, whether or not Virgin Galactic represents a viable long-term investment is your decision to make. The only way to do this is to perform heaps of in-depth research.
Virgin Galactic investors will be hoping that the firm will be the one to dominate the future of space tourism. It does, however, have stiff competition on its hands – with the likes of SpaceX (Elon Musk) and Blue Origin (Jeff Bozos) also looking to take this innovative sector by the horns.
If you think that Virgin Galactic is here to say and thus – its shares are heavily undervalued, you can easily make an investment with eToro. This FCA-regulated share dealing platform allows you to invest without paying any commission or ongoing fees – and you can instantly make a purchase with your debit/credit card or e-wallet.
Simply click the link below to get started!
75% of retail investor accounts lose money when trading CFDs with this provider.
What does Virgin Galactic do?
Virgin Galactic is an innovative company behind space tourism. Put simply, affluent consumers have the chance to orbit into space by meeting a 'mere' ticket price of $250,000.
What stock exchange is Virgin Galactic shares listed on?
Virgin Galactic is listed on the New York Stock Exchange. Even if you're based in the UK, making a share purchase can be achieved in minutes with commission-free broker eToro.
Do Virgin Galactic shares pay dividends?
No, Virgin Galactic doesn't pay dividends. In fact, it likely won't do for many, many years. After all - and like most up and coming tech stocks - it is reporting losses quarter after quarter!
When will the first Virgin Galactic flight happen?
Initially, Virgin Galactic was on course to launch its first commercial flight in 2020. However, owing to the coronavirus pandemic, this has been postponed to 2021..
How do you buy shares in Virgin Galactic in the UK?
Even though Virgin Galactic is listed on the Ney York Stock Exchange, buying shares in the firm from the UK is simple. All you need to do is open an account with eToro, instantly make a deposit with your debit/credit card, and then choose how many shares you wish to buy. The process can be completed without paying any share dealing fees.