The space tourism company Virgin Galactic Holdings(NYSE:SPCE) is slated to report its first-quarter earnings after the market closes on May 5. During the companys earnings conference call, its management will review its first-quarter earnings and discuss its expectations for the remainder of the year.<\/p>\n
Source: Tun Pichitanon \/ Shutterstock.com<\/p>\n
SPCE stock has been on a bit of a bumpy ride over the past few months. After hitting a 52-week high in mid-February, the stock has bounced up and down ever since. Its interesting to see that the stock tends to rise as the market dips and then dip as the market rises.<\/p>\n
Virgin Galactic is very different from other publicly traded companies. It is developing a commercial spaceflight system, but that takes a lot of time, and the company still has very low sales and very few customers.<\/p>\n
Nonetheless, many investors are enthusiastic about SPCE stock, and its analysts are moderately upbeat about it. But the ongoing coronavirus pandemic has caused problems for many companies, including Virgin Galactic Holdings.<\/p>\n
Many people were expecting that this would be the year that Virgin Galactic finally launches its first commercial space flight. As of February, more than 600 people had reserved a seat on the companys SpaceShipTwo aircraft.<\/p>\n
The company announced it would begin selecting candidates for space flights soon. The flights are expected to cost a pricey $250,000 per person.<\/p>\n
Launching its first commercial space flight would have been a huge step forward for Virgin Galactic, but these plans will likely be on hold for the foreseeable future. The travel industry as a whole is struggling, and its unclear when well even be able to travel by airplane again, much less go into space.<\/p>\n
But its not just climbing aboard Virgin Galactics six-passenger aircraft thats the problem. Before passengers can take a commercial space flight, they need to receive training, get fitted for a flight suit, and receive a thorough medical evaluation.<\/p>\n
All of that involves travel and a lot of in-person contact, which is not possible when so many states are implementing mandatory stay-at-home orders.<\/p>\n
The commercial space flight probably wont happen in 2020, but that doesnt mean all hope is lost for SPCE stock investors.<\/p>\n
In spite of the coronavirus setback, Virgin Galactic does have potential going forward. Commercial space travel likely will become a reality within the next couple of years, and SPCE stock has the advantage of being the first publicly traded space tourism company.<\/p>\n
The company still has healthy cash flow and is well-positioned to overcome these temporary setbacks. That makes Virgin Galactic Holdings a good long-term investment<\/p>\n
Jamie Johnson is a personal finance freelance writer and has been writing for InvestorPlace since mid-2019. She writes for a number of other well-known financial sites, including Credit Karma, Quicken Loans and Bankrate. As of this writing, Jamie Johnson did not hold a position in any of the aforementioned securities.<\/p>\n
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Will the Coronavirus Derail the Momentum of Virgin Galactic Stock in 2020? - Investorplace.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The space tourism company Virgin Galactic Holdings(NYSE:SPCE) is slated to report its first-quarter earnings after the market closes on May 5. Continue reading