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Virgin Galactic stock boosted following commitment to Q2 commercial flight goals

Yahoo Finance Live checks out Virgin Galactic shares as it maintains its outlook for commercial flights.

Video Transcript

SEANA SMITH: Virgin Galactic shares closing higher today and anticipation growing for commercial trips. You're looking at gains of just about 12 and 1/2%, and that's commercial trips to space. The aerospace company noting in a release Thursday night that it is, quote, "on track to support commercial space line operations in the second quarter of this year." Virgin Galactic also stating in the release that we had several executive shakeups to bolster those commercial operations, including the departure of the company's president of aerospace systems.

Now the stock popping today, but that has been after a wild ride over the past few years, looking at losses of just about 81% in the last two years alone. And Dave, when you take into account a lot of excitement about the fact that we are close potentially to commercial service when it does come to Virgin Galactic, you've got to get ready to pay up if you're going to want to be on one of these flights. $450,000 for a ticket potentially-- that's crazy.

DAVE BRIGGS: Potentially, yeah. That's what they said February of last year when they discussed this plan. So 450,000 per flight, that's with a $100,000 deposit. At last check, however, they did have about 800 reservations that they managed to put on hold until what it sounds like maybe second quarter. But yeah, you're talking about a very small, small portion of the world that can afford this.

We've seen Blue Origin get into this-- the business space, tourism now with, I think, five flights. Michael Strahan, Bezos himself flying and William Shatner. But how long can this go? The real question is, how low can they bring that price point in order to bring it to ordinary Americans? I just can't imagine it's going to get anywhere close enough for ordinary people around the world to even consider.

SEANA SMITH: Yeah, I agree with you, but I also am genuinely curious in terms of how many people would actually be willing to take the risk and go up in one of these things. I have a feeling that you actually would, would you?

DAVE BRIGGS: Absolutely. My wife would say no.

SEANA SMITH: No.

DAVE BRIGGS: But, like, that's how these things go.

SEANA SMITH: I would be way too scared. It would be interesting just to see exactly how much demand there is out there for this because, yes, it's really cool. There's so much excitement when we talk about this and the fact that we could be getting closer and closer when it comes to Virgin Galactic. But I still would venture to guess there's a heck of a lot of people out there, the majority, that would be very, very hesitant, which could be a good thing.

DAVE BRIGGS: Ooh, not on Twitter, my friend. I think you are on the timid side of this.

SEANA SMITH: Really?

DAVE BRIGGS: I think millions of Americans would absolutely sign up for this if it were anywhere approachable, but 450k, even if it were cut to 100,000, which we're not 20 years away from--

SEANA SMITH: That's a heck of a lot of money.

DAVE BRIGGS: --I can't imagine that Americans would sign up for what amounts to, what, 15, 20 minutes in space? No.

SEANA SMITH: No.

DAVE BRIGGS: We're nowhere near space tourism becoming reality.

SEANA SMITH: Yeah, that price is going to need to come down quite a bit.

DAVE BRIGGS: So you wouldn't go for 10 grand?

SEANA SMITH: No.

DAVE BRIGGS: You wouldn't go for free?

SEANA SMITH: I would, like, maybe send you up, everyone else [INAUDIBLE].

DAVE BRIGGS: Well, I know you'd send me up.

SEANA SMITH: Everyone go on their test flights. If everyone comes back down safely, then I [INAUDIBLE].

DAVE BRIGGS: You wouldn't go for free?

SEANA SMITH: Not right now, no.

DAVE BRIGGS: Wow.

SEANA SMITH: Yeah.

DAVE BRIGGS: How about Blue Origin?

[LAUGHTER]

All right, all right.

SEANA SMITH: [INAUDIBLE] like, yeah, you know what?

DAVE BRIGGS: It's not--

SEANA SMITH: I'd take the risk [INAUDIBLE].

DAVE BRIGGS: It's not a Branson thing.

SEANA SMITH: Yeah, no, it's not.

DAVE BRIGGS: OK.

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