Ever since Virgin Galactic (NYSE:SPCE) shot Richard Branson into space on the first-ever commercial space flight, SPCE stock has been anything but stellar. Despite the successful flight, the stock is currently trading down around $35 on other news.

Make no mistake, there’s no lack of excitement over Virgin Galactic’s space tourism business. The market is very excited about it, and SPCE stock actually popped 10% the morning after the flight.

What’s stopping investors in their tracks is Virgin Galactic’s at-the-market $500 million stock offering, which was announced after the flight. As soon as news of this hit, the stock dropped 20%. And it’s been gliding downward ever since.

We understand why the market would be upset about this offering. But we also think these funds provide a long-term tailwind for Virgin Galactic.

The reality is that the next 12 months will be crucial for Virgin Galactic’s growth. The technology behind its space tourism business has been perfected, and now it’s time to scale.

That scaling includes building a whole lot of spaceships, running loads of ads and signing up as many customers as it can.

All of those operations require money — a lot of money.

Connecting the dots, we believe Virgin Galactic will throw this $500 million into accelerating its key business functions and will be able to more rapidly scale its commercial operations over the next 12 to 24 months.

The Bottom Line on SPCE Stock

And that is why, in response to the offering, we actually lifted our 2022 and 2023 estimates on the company.

We believe Wall Street will eventually do the same. And once they do, the stock will rebound back above $50.

The space economy will be enormous, and Virgin Galactic is at the forefront.

If you’re looking to buy the dip in SPCE stock, watch for the $34 level, as that appears to be a level of strong support at which this current selloff could stabilize.

Virgin Galactic is one of my top picks in the space tourism industry. Long-term, this stock will score investors big returns.

But it’s not the only high-growth, high-return stock on my radar today.

In fact, in my premier newsletter Innovation Investor, I have 50 hypergrowth stocks that could score investors Amazon-like returns over the next months and years.

If you decide to subscribe, you’ll gain access to a number of my special research reports, including reports on 3 World-Changing AI Stocks to Buy, 7 Hyperscale Stocks to Buy in 2021, and my cornerstone investment guide, The VC Insider’s Millionaire Playbook.

What’s more, you’ll have complete access to each company in my model portfolio, which includes stocks like the world’s most exciting autonomous vehicle startup, a world-class “Digitainment” stock creating the building blocks of the metaverse, a company that we fully believe is a “Tesla-killer,” and many more.

Click here to watch my first-ever Exponential Growth Summit and to subscribe to Innovation Investor today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.