These days, Richard Branson’s Virgin Galactic Holdings Inc (NYSE: SPCE) is the most frequently mentioned company in headlines of tech news. And hot discussions around its activity are no wonder as the company’s stock shows incredible movements. Virgin Galactic (SPCE) stock rises, with shares of the company nearing $40. The company’s stock has climbed 310% in the past three months, and with such performance, Virgin Galactic outperforms Tesla Inc. (NASDAQ: TSLA).
On Tuesday, Virgin Galactic (SPCE) stock experienced wild trading. Its shares took off. The value of short bets against Virgin Galactic hit a record of $500 million on Tuesday after the stock surged to its own all-time high, $37.35. Besides, its market cap was above $7 billion. After surging up to 24%, the shares were up 14% in pre-market trading on Wednesday, February 19. That day, Virgin Galactic stock closed at $37.26.
Yesterday, the trading volume also set a new record, as 134.5 million shares traded hands. But SPCE shares closed down 0.2% at $37.26. Early in trading the stock jumped more than 13% and soared past $40 to a new record high. However, later the stock reversed and fell, dropping as much as 17% to about under $32. It closed at $37.35.
As for the current price after closing, Virgin Galactic stock is valued at $37.26, the company’s market cap is $7,302,998,676.
According to Morgan Stanley analyst Adam Jonas, the volatility of price shows that it needs correlation.
“A modest correction is overdue, and frankly, healthy, in our opinion. Even Spaceships Must Return to Earth.”
Jonas further added:
“The stock is trading 70% above our $22 price target with around 60% upside to our $60 bull case.”
Virgin Galactic has already outperformed analysts’ predictions. Moreover, it has outdone Tesla and Apple Inc. (NASDAQ: AAPL).
High Expectations of Virgin Galactic (SPCE)
It is expected that $40 is not a bound for Virgin Galactic. The company started trading on the New York Stock Exchange (NYSE) under the ticker SPCE in January this year. Notably, it became the first-ever commercial human spaceflight company to go public. Since the listing at around $12.10 per share, the stock has skyrocketed over 200%.
If Virgin Galactic stock rises over $40, it will unlikely astonish traders. The company has already profiled itself, and all wonder what will come next.
Founded back in 2004, Virgin Galactic has spent more than $1 billion on developing its program. For 2023, the company is predicting to make 270 trips to space, which would get it around $600 million and generate a profit of more than $430 million.
According to Vertical Research Partners, the company is a “one-of-a-kind opportunity to invest in space tourism.” Judging by Virgin Galactic stock performance, it is definitely true.