Virgin Galactic (SPCE) Stock Moves back Near To All-Time High: What To Do Now?
5:01 pm Monday, June 28th, 2021
In recent times there has been an increasing interest in space flight companies among investors and one of the companies to have garnered considerable attention is Richard Branson’s Virgin Galactic.
This past Friday, the Virgin Galactic (NYSE:SPCE) stock was in high demand among investors and soared by as much as 39% after the company’s license was updated by the Federal Aviation Administration (FAA). This is a significant development for Virgin Galactic since it paves the way for the company to transport passengers to space. More importantly, Virgin Galactic became the very first company to get such a license from the FAA and marks one of its biggest milestones.
At this point in time, Virgin is completely focused on its next test flight which is going to be a fully crewed flight to space. In this regard, it is also necessary to point out that the update to the company’s license has been granted less than a month after it completes its third space flight. The test flight was also fully crewed.
Hence, it is no surprise that the market has reacted with such positivity to this development. While the latest development is a massive positive, it is also true that Virgin Galactic is currently a loss-making company. Moreover, its expenses are quite high as well, as can be seen in research and development spending of as much as $645 million in 2020. The long-term debt remains at $24 million. In other words, it is a growth focussed company at this point.
