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Virgin Galactic Holdings (NYSE: SPCE) stock manages to continue its rise while the majority of the stocks on the market are falling. Now in teh pre-market, it has gained around 8%.
Virgin Galactic Holdings (NYSE: SPCE) stock has managed to rise slightly during the recent stock dip on the market. This dip occurred during a brief reign by the bears. The reason behind this was the issues surrounding the coronavirus. During the market stumble, SPCE stock had a reversal.
The stock experienced an uptick of 8% and closed at 1.2%. This came after losses of up to 14%. At yesterday’s close, the SPCE price was $34.29. Now at the pre-market, teh price is higher. It has reached $37.02 having added almost 8%.
This isn’t the only price action that is currently underway. Most of this quarter has seen speculative action on the stock. The reasons behinds this aren’t far-fetched. The very idea of space tourism itself brings all kinds of hype to the table. Then we have Richard Branson trying to introduce the concept. That changes things. This has driven to highs of over 200% this year alone.
Virgin Galactic (SPCE) Stock to Expect More Action on the Market
The performance of the company will be assessed later today. Announcements of its quarterly results are expected after the markets close. Not that it matters but the performance of the company hasn’t led to any concrete reason for the hype. At least this is what seasoned investors think.
The increases of quarter three losses to about $51.5million from $39.2 million last year raises questions. Increased research costs to about $34.5 million also raise eyebrows. This represents a 13% increase in spending.
Virgin Galactic had reported late last year that revenue had increased to $832,000. The company indicated that it was a 200% increase.
The revenue was reportedly generated from logistics regarding scientific payloads. Engineering consulting services were also included as well. This also indicates that space tourism isn’t the only business unit of the company with enormous profit potential.
The Third Quarter Reports from Last Year Show Promise
The third-quarter report of the company held more surprises. The report indicated that the company had received over 600 reservations from 60 countries. This gave the company $80 million in deposits. A potential revenue of about $120 million is also in the offing. The report further noted that about 3557 expressions of interest were made during that period.
Analysts are focusing on future activities. The testing and certification of the USS Unity are critical to the companies business model.
Other stock of innovative companies also followed this trend as well. Speculative trading seems to have been the norm for companies that have a futuristic outlook.
New technologies seem to be the darling of investors as the issue seems entrenched in this approach.
We have previously reported that various stocks are undergoing speculative trading at the moment. Tesla Inc (NASDAQ: TSLA), Virgin Galactic Holdings Inc (NYSE: SPCE) and Plug Power Inc (NASDAQ: PLUG) stocks have been indicating odd behavior on the market based on trading volumes and higher prices. All of these come without any real business on the ground to back the investment choices.
We all know that speculative prices mean one thing: Bubbles. A time will come when these bubbles will burst. The question, therefore, whether Virgin Galactic and co. will achieve their business aims and objectives? In the short term maybe but definitely in the long term, Sir Richard Branson may not be conventional but he does get the job done. And rather nicely too!