Virgin Galactic (NYSE:SPCE) stock has been out of this world.
Source: Tun Pichitanon / Shutterstock.com
In fact, since bottoming out at $6.90 late last year, SPCE stock blasted to a high of $42.49 just months later all on the idea that a global space industry could quickly become a multi-trillion dollar industry.
However, after flying too high, too fast, SPCE stock plummeted after posting a loss of $73 million in the fourth quarter of 2019. Analysts, including Credit Suisse analyst Robert Spingarn, said the firm could no longer recommend the stock after such a hefty run higher. Morgan Stanley analyst Adam Jonas noted Even Spaceships Must Return to Earth after downgrading the stock to a hold rating.
Virgin Galactic fell even more on news Sir Richard Branson plans to sell $500 million worth of SPCE stock. However, the sale is nothing to be too alarmed about. Branson is reportedly selling to help prop up his airline and leisure assets, which have been crushed by the novel coronavirus.
Even with all of the negativity, I still believe Virgin Galactic could revisit early 2020 highs. All thanks to sky-high space travel demand, and a recent deal with the folks over at NASA.
Granted, earnings are nothing to write home about just yet.
The company posted a loss of $60 million, or 30 cents a share in the first quarter, as compared to a loss of $42.5 million, or 30 cents, year-over-year. Revenue fell to $238,000 from $1.8 million, as well. Meanwhile, analysts were only looking for a loss of 15 cents on sales of $700,000.
While Virgin Galactic isnt pulling in great numbers just yet, dont write it off. With its One Small Step space travel initiative, its already received 400 deposits payments from individuals in 44 countries, which represents more than $100 million of potential future revenue.
Analysts are also bullish. Morgan Stanleys Adam Jonas, despite his calls for a modest correction, is maintaining an overweight rating and $24 price target.
Despite the modest adjustments to our space tourism [discounted cash-flow model], the company maintains a healthy cash position (~$500 million) and its expected ~$16 million per month cash burn position it well to navigate any near-term headwinds, he noted in late March.
Virgin Galactic and NASA just signed a Space Act Agreement to develop high-speed technologies.
In partnership with NASA, Virgin Galactic believes there are significant opportunities to apply higher speeds to drive technological development to allow industries to adapt to the changing economic and ecological environment. The collaboration will aim to inform the development of national strategies using economic and technical foundations with a focus on sustainability.
Plus, as InvestorPlace analyst Matt McCall notes, SPCEs status as a pure play alone will drive some optimism. And theres a real business here. Virgin Galactic is charging $250,000 a flight. But there are, well, millions of millionaires who will pay that sum for a once-in-a-lifetime experience. And as the company grows and improves, those costs will come down.
Granted, Virgin Galactic is a speculative bet at the moment. But Im willing to bet that if it can help transform air travel at hypersonic speeds, create more deals with NASA and get off the ground to meet sizable space travel demand, itll be well worth the investment.
In my opinion, the safest move is to take a small speculative bet on SPCE stock. Buy it. Forget about it, and check back on it next year.
Ian Cooper, an InvestorPlace.com contributor, has been analyzing stocks and options for web-based advisories since 1999. As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities.
See the article here:
- Is Commercial Space Travel Finally Taking Off? BRINK News and Insights on Global Risk - BRINK - July 21st, 2020
- Twelve Must-Sees When the Smithsonian Reopens Udvar-Hazy Center July 24 - Smithsonian Magazine - July 21st, 2020
- Worried About Crowded Planes? Know Where Your Airline Stands - The New York Times - July 21st, 2020
- Does Your Company Have a Long-Term Plan for Remote Work? - Harvard Business Review - July 21st, 2020
- Travel to the stratosphere and back with Space Perspective in 2021 - Lifestyle Asia - July 21st, 2020
- ESO's virtual tour: Travel to outer space from the comfort of your home - Livemint - July 21st, 2020
- Amazon's Jeff Bezos adds $13 billion to his net worth in a single day - CNET - July 21st, 2020
- 5 design things to do July 20 - 26 - KCRW - July 21st, 2020
- The Morning After: Warner Bros. postponed the release of 'Tenet' indefinitely - Engadget - July 21st, 2020
- 6 things you didn't know about G Shock watches - We Are The Mighty - July 21st, 2020
- Did Ludacris Just Leak That 'Fast and Furious' Will Travel to Space? - Showbiz Cheat Sheet - July 21st, 2020
- HMS Challenger: The voyage that birthed oceanography - BBC News - July 21st, 2020
- Space travel is giving the future of cryptocurrency a boost for one surprising reason - Express.co.uk - June 30th, 2020
- How will private space travel change the way we explore the Solar System? - BBC Focus Magazine - June 30th, 2020
- 5 Public Space Companies to Invest in Over the Next Decade - seattlepi.com - June 30th, 2020
- New Houston-made satellites to mimic versatility of the chameleon in space - Houston Chronicle - June 30th, 2020
- Relativity and 6K Partner to Develop AM Rocket Parts for Space Made from Sustainable Materials - PR Newswire UK - June 30th, 2020
- SpaceX news: EU to boost their space exploration to keep up with China and US - Express.co.uk - June 30th, 2020
- Virgin Galactic aims to evolve $15 billion business from space tourism - Business Insider - June 30th, 2020
- Resolution approved to urge feds to locate Space Command headquarters in Ohio - MahoningMatters.com - June 30th, 2020
- At Least 110 People Needed to Start Life on Mars, Space Expert Says - Yahoo News - June 30th, 2020
- Why go 'horse and buggy' to Mars when we could go supersonic? | TheHill - The Hill - June 30th, 2020
- Recapping the Historic First Half of 2020 - Morning Brew - June 30th, 2020
- SpaceX gearing up for another launch of Starlink broadband satellites this week - Spaceflight Now - June 30th, 2020
- Boeing tests Starliner parachutes ahead of second test flight - Digital Trends - June 30th, 2020
- 5 Best Films About Space Exploration (& 5 The Worst), Ranked According To IMDb - Screen Rant - June 30th, 2020
- First UK night out of lockdown camping in Northern Ireland - The Guardian - June 30th, 2020
- The story of Ed Dwight: the man who nearly became the first African-American to reach space - The Next Web - June 30th, 2020
- Senate approves resolution urging feds to locate Space Command headquarters in Ohio - The Center Square - June 30th, 2020
- New company Space Perspective wants to take you to the stratosphere via high-altitude balloon - The Verge - June 21st, 2020
- spaceship neptune is a balloon that will take you to the edge of space - Designboom - June 21st, 2020
- The end of food? 'Taste synthesizer' will transform space travel, dieting and sex - Daily Star - June 21st, 2020
- SpaceX to build floating space ports for rockets destined for the Moon and Mars, and for hypersonic travel to Earth - Up News Info - June 21st, 2020
- What's the science on the Emirates Mars Mission? - DW (English) - June 21st, 2020
- STREAMING WARS: Netflixs big-budget comedy Space Force has all the right ingredients, but fails to deliver the laughs - SaltWire Network - June 21st, 2020
- Coronavirus: Travel to Spain, and the 'second wave' - BBC News - June 21st, 2020
- Is this double-decker seat the future of airplane travel? - CNN - June 21st, 2020
- Safe vacations and traveling during coronavirus: Advice to follow - TODAY - June 21st, 2020
- The Internets Most Censored Space - The New York Times - June 21st, 2020
- Virgin Galactic Stock Is Only for Astronauts and Speculators - InvestorPlace - June 21st, 2020
- Best Solar Eclipse Photos And YouTube Videos Of The Solstice Ring Of Fire From Around The World - Forbes - June 21st, 2020
- The amazon bond offering - Nairametrics - June 21st, 2020
- Satellites, outer space travel to be open for private companies in India: Govt - Livemint - June 13th, 2020
- Former astronaut becomes first person to visit both space and the deepest place in the ocean - CNN - June 13th, 2020
- Guest View: Despite space flight, there is no Planet B - The Register-Guard - June 13th, 2020
- Ask Ethan: How Does The Fabric Of Spacetime Expand Faster Than The Speed Of Light? - Forbes - June 13th, 2020
- Poem of the week: Sermon (for the Burial of Cassini) by Ella Frears - Telegraph.co.uk - June 13th, 2020
- Impact of COVID-19 on Space Tourism Market to Garner Astounding CAGR of 16.6% by 2025 Including Top Key Players- Space Adventures, EADS Astrium,... - June 13th, 2020
- Letters to the Editor: June 12, 2020 - West Hawaii Today - June 13th, 2020
- Have Scientists Found a Hybernation 'Button' for Humans? - The National Interest - June 13th, 2020
- Is It Risky To Ride In A Convertible? Go To A Casino? Travel With Kids? : Goats and Soda - NPR - June 13th, 2020
- Astronomer on why he is a 'frustrated martian', his love of the night sky and what the future holds for space travel - Times & Star - June 13th, 2020
- From Breakfast at Tiffanys to To Kill A Mockingbird, the best and worst examples of diversity in film - Evening Standard - June 13th, 2020
- What Space Travel Will Look Like in the Future - Earthly ... - June 9th, 2020
- WRITE TEAM: Space travel is back to once again give us faraway dreams - MyWebTimes.com - June 9th, 2020
- Former NASA astronaut Kathy Sullivan becomes first person to travel to space and ocean's deepest point - ABC News - June 9th, 2020
- Netflixs Space Force Just Exposed Animal Cruelty In Space Travel - LIVEKINDLY - June 9th, 2020
- You Can Now Tour the International Space Station From the Comfort of Your Home - Robb Report - June 9th, 2020
- This is the 'most ridiculously overvalued' trade in the travel space, strategist warns - CNBC - June 9th, 2020
- Evolution of 3rd, 4th and 5th Dimensions of Travel - Use Cases, Infrastructure Required, Application Areas, and Growth Opportunities -... - June 9th, 2020
- The Dangers of Space, Military Rivals and Other New Books to Read - Smithsonian.com - June 9th, 2020
- Here's how astronauts exercise in space without gravity - Yahoo Lifestyle - June 9th, 2020
- A group of enthusiasts has annotated the assembly code for the Apollo 11 mission to the Moon - Neowin - June 9th, 2020
- Faster-than-light travel: Is warp drive really possible? - BBC Focus Magazine - June 9th, 2020
- America Once Planned To Send An Apollo Spacecraft To A Soviet Space Station - Jalopnik - June 9th, 2020
- Trend report: nothing 'normal' about travel in the age of Covid-19 - Globetrender - June 9th, 2020
- Astronomer on why he is a 'frustrated martian', his love of the night sky and what the future holds for space travel - The Westmorland Gazette - June 9th, 2020
- Future Meeting Space explores customer needs and expectations on new event formats - Travel Daily News International - June 9th, 2020
- News: New Rotherham active travel projects - Rotherham Business News - June 9th, 2020
- Spain to extend restrictions on international travelers until June 15 - EL PAS in English - May 15th, 2020
- The 100 Series Finale Trailer Teases Screams, Space Travel, And Drastic Haircuts - Gizmodo Australia - May 15th, 2020
- On the Road Review: Ram 2500 Limited Crew Cab Diesel - Press Herald - May 15th, 2020
- Spains reeling tourism industry objects to travel restrictions - EL PAS in English - May 15th, 2020
- Virgin Galactic Is Grounded with No Profit and Little Revenue - InvestorPlace - May 15th, 2020
- Astronaut on how to survive isolation, and the future of space travel - Business Insider - Business Insider - May 14th, 2020
- Meet The Women Of The San Diego Art Prize - KPBS - May 14th, 2020
- Visual Artist Melissa Walter Makes Sense Of The Stars - KPBS - May 14th, 2020
- Astronauts experimented with Nickelodeon's slime in space - CNN - May 14th, 2020
- Virgin Group to sell shares of space venture to aid travel business - UPI News - May 14th, 2020
- What to binge next: 10 sci-fi shows to escape into the future - UPI.com - May 14th, 2020