SPCE Stock Jumps / SPCE Sock News
Virgin Galactic opened %20 higher than its previous close on Monday. Over the past 5 days this SPCE stock is up about %50 which is a massive increase for the stock price. Most Long-term investors are not going to sell their shares because of the amount of catalyst coming up. SPCE stock was pumped by investors up to $28. Trading was halted several times and it seems there is no limit for Virgin Galactic SPCE stock right now. It is going to the moon! It is at the top of the list in terms of turnover. Although Virgin Galactic SPCE stock is up, it is still more than %60 below its all-time high because it will take a long time for a full recovery.
Why is Stock Price Increasing?
SPCE which stands for Virgin Galactic flew a successful test flight over the weekend. It is the first successful test flight from New Mexico. Everything went smoothly. Therefore, Elon tweeted and congratulated Virgin Galactic. Investors were very excited for the SPCE stock to open on Monday. People started to buy back in because the space flight mission was a huge success. You can find the whole process video on YouTube and their Twitter account. If you have not watched it yet, we recommend you watch it. You can follow them on Twitter, they are updating it. Virgin Galactic SPCE stock price is $26.89 today however it was $21.07 yesterday. They have a market cap of approximately $5 Billion.
Investments or stocks are kind of valued depending on how much risk they have in the future. Because of this reason, it was riskier to own SPCE stock before the mission on Friday. There was a big risk to failure. However now that mission has reached success, it is going to add more value to the company. Although that mission was a huge success, their engineers still have to conduct a review of all the test data and inspect the spaceship so there is the potential that there could have been something wrong. Ability to get data is a great move for the company but some investors can think of it as a risk.
Their Flight Test Program
Their flight test programs have 4 flights before they become commercially viable. The first one that happened on Saturday was the successful one. On Saturday’s flight they have a rocket powered space flight with two pilots on board. This first test flight was supposed to be completed in December 2020 but unfortunately because of an electromagnetic interference problem, it was delayed for 6 months. The second flight is likely to happen very soon, and it will be with two pilots and a full cabin of mission specialists. It can be in Summer of 2021.
The third one will be a very exciting one which includes Sir Richard Branson, will demonstrate private astronaut experience. It is more likely to generate the most publicity. Final flight will demonstrate microgravity research and it is going to be the first full revenue generating flight. As you can see, the company still has to go through much more.
Fixing an issue takes a lot of time. Of course, there is a possibility that we might not see any issues or delays with the next 3 test flights, and we can get these 3 flights before the end of 2021. However, you have to know that if there were issues like the first flight, flights can take again for 6 months to fix those issues. They have a higher chance for success in Summer because the weather is nicer in summer months.
You should do your own research. This content is not created for financial advice.