The space tourism industry is making news across the world, and Virgin Galactic (NYSE:SPCE) is thriving in the success of the successful space tourism flight. However, SPCE stock has not taken this success well. The stock is down 28% so far for the month of July.

SPCE stock hit $57.51 in June and opened at $31.26 today, but patient investors need not get nervous about the stock. The company enjoys a first-mover advantage and will take the stock higher.

After the successful flight, Virgin Galactic filed to sell $500 million in shares, which led to a massive decline in the stock. This decline reversed the gains made by the company after the successful flight. I believe this dip is an opportunity to buy SPCE stock and hold until the company makes an announcement about the next flight.

The Volatility May Not Last

It is natural for stocks to rise and fall when companies make major announcements. Whether it was the cancellation of the test flight in February or a successful test flight from competitor Jeff Bezos in July, the stock has shown volatility. Virgin Galactic has an early mover advantage and a futuristic business plan that has already garnered fans across the world.

The stock market comes with volatility, and it should not worry seasoned investors. I strongly believe that the high volatility seen recently will not last long. The stock will gain momentum and soon rise to the previous level.

The planned share offering has left investors concerned about the future of the company, but space enthusiasts must understand the investment that space tourism requires. 

The company’s goal is to fly 400 trips per year. This will certainly generate massive revenue in the future. It is a long way into the future but as long as there is a plan and timely execution, the company will be able to report impressive numbers. 

The Space Economy Is Massive

The space tourism market is massive and it is forecasted to reach $1.3 trillion by 2025 according to a report from Industry Arc. Virgin Galactic already has people who have signed up for future trips and are waiting for commercial flights to begin.

The company has already laid the foundation and can begin to scale up. This is why it requires funds and has planned the share offering. It has no debt and a strong cash balance, but the additional funds will help Virgin Galactic soar higher.

If the company manages to cut down on costs and ultimately reduce the cost of the trip, it will be able to attract a wider audience. This will only lead to higher revenue and massive growth. 

As the competition in the industry increases, there will be more options to choose from, but Virgin Galactic will remain a strong contender. It has already marked its presence in the industry and has shown the world that its technology is ready to take you to space. Every successful step the company makes is taking humanity closer to commercial space tourism. 

The Bottom Line on SPCE Stock

I have always been intrigued with space tourism, and the recent successful flight shows that the company will move forward with the test flights as planned.

There is no update on the next flight yet, but the company is scheduled to announce Q2 results on August 5. We can expect further updates then.

I believe the dip in the stock is an opportunity to buy. SPCE stock is here to stay, and every successful flight will take it higher. 

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.