lookikid.blogg.se - Race into space android

And CNBC, of course, is focusing on call option volume and rampant speculative fever on Reddit message boards.įorget Tesla. We're not sure how many shares those Robinhood accounts have actually bought, fewer now that the price has crossed the $25 threshold they use in one screen, but the stock has recently traded more than 100m shares in one day, more than 10x the 3-month average. That desire to get in on the ground floor, or launchpad, has also generated some investor enthusiasm, as you can see at Robinhood, which claims that over 80k client accounts now contain SPCE or visit Robintrack to see their graph showing a direct correlation between the share price and number of accounts that hold the stock. Just check out Seeking Alpha's SPCE page to see for yourself ( Virgin Galactic Holdings, Inc. Or the fact the company can bill itself as the first and only publicly traded company devoted to space tourism. Given the company's financial status and lack of actual products (no tourists have traveled to the outer limits just yet), the entire bull case for the stock rests on theoretical arguments. And for now, SPCE is absolutely taking off like a rocket although straight up, which rocket scientists will tell you isn't the best way of doing things. Still, they do share a common investment premise built around the promise of radical disruption, and that sends investor pulses racing and share prices soaring, at least for a time. It's trying to revolutionize a new industry, not create one from scratch! Tesla may have some warts, including declining margins and increasing capex, but its core proposition to the market is radically different than that of Virgin Galactic.

Let's face it, Virgin Galactic is a lot less of a Rorschach test than Tesla ( TSLA), the subject of our last post which elicited some serious comments from our readers. SPCE will likely join the Russell later this year, but the potential buy-in likely won't be enough to help boost the stock price to new heights. One ETF in particular, the Procure Space ETF ( UFO ) is a large holder, but investors hoping for a big ETF buy-in to keep the price up might want to start tempering their expectations. That price appreciation has mainstream financial media types arguing over call option volumes and long-term trends, but investors are again debating whether SPCE will be added more ETFs in the near future and hopefully making it more likely the stock can orbit at these high levels, instead of quickly falling back to Earth like an actual Virgin spaceship. Obviously, all of that might be enough to scare away any traditional investor, but a rampant desire for all this growth has Virgin Galactic's stock price taking off like an actual rocket with the stock up over 353% from its December low and taking the company directly into the ranks of the mid-cap market! Not too shabby, given that the company has yet to take a single paying tourist to the final frontier.

Must be case-hungry because, from the last income statement we have, before privately held Virgin Galactic merged with a special purpose entity to become a public company, SPCE had lost $139 million in just the first nine months of 2019 on over $3 million in revenue.

Let's not forget opaque financials because we have no idea how unprofitable SPCE is, given the fact that the stock has only been publicly traded since last fall and has yet to even release a balance sheet from after it began trading.

To date, not a single paying client has been taken on one of its short flights.

Of course, the company must be incredibly unprofitable as it scales up to begin actual operations.

The long-term goal might be building a "better mousetrap" i.e., fast suborbital flights as an alternative to current commercial airlines, but the dream of retail space flight has investors enthralled.

A business model holding out the promise of seemingly limitless growth in a nascent industry, in this case, carrying tourists on sub-orbital flights.

A visionary founder, in this case, Sir Richard Branson.

Let's run through the comparison checklist: Space might be the final frontier, but Virgin Galactic ( NYSE: SPCE) might seem to be just the latest re-run of the dot.com fever of the late 1990s.

Everything old is new again, at least that's how it must feel to market watchers as another tiny, unprofitable company, promising to reshape an entire industry, suddenly goes from completely overlooked to front and center.