Virgin Galactic gains on reported Blue Origin flight pricing above $500k per seat

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  • Virgin Galactic (NYSE:SPCE) rose 4.4% partly after a tweet that rival Blue Origin (BORGN) is pricing its space flight tickets above $500k per seat.
  • A tweet from a senior space editor at Ars Technica claims that a reliable source said that price for New Shepard will be "well north" of $500K when the pricing is announced tomorrow.
  • Seeking Alpha's Catalyst Watch reminds investor that the Blue Origin pricing event is tomorrow. Blue Origin hasn't released information yet on how much tickets will cost.
  • Shares of Virgin Galactic have been volatile in the past on days Blue Origin made announcements.
  • Virgin Galactic's average ticket price in their ~600 passenger reservation pool is about $250k, according to a note from UBS analyst Myles Walton last week. UBS has modeled a ~$300k per passenger.
  • Walton wrote that a Blue Origin price point below $250k-$300k would likely lead to questions about pricing durability for the industry.


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