Why Did Virgin Galactic’s Stock Experience a Remarkable Surge?
Why Did the Virgin Galactic Stock Surge?
At the heart of the financial news, the Virgin Galactic Stock Surge became a prominent highlight. On an unassuming Wednesday, Virgin Galactic’s stock, identified as SPCE 4.22%, witnessed a significant recovery from its previous fall. This remarkable upswing, predominantly evident after 2 p.m. EDT, primarily stemmed from the Federal Reserve’s decision to hold the federal funds interest rate near 0% through 2023. Such a move is anticipated to reduce the allure of bonds compared to stocks, indirectly benefiting stock market investments, including the Virgin Galactic Stock Surge.
Beyond the broader market influence, Virgin Galactic also enjoyed some positive company-specific developments.
The Company-Specific Catalysts behind the Virgin Galactic Stock Surge?
The uplift in Virgin Galactic’s stock wasn’t just a stroke of market luck. According to reports by StreetInsider.com, Truist Securities (formerly BB&T Securities) initiated coverage of Virgin Galactic’s stock post-Tuesday’s trading session. They weren’t just optimistic but bullish, setting a $50 price target. Truist’s enthusiasm stemmed from Virgin Galactic’s unique position as “one of the first market entrants, with proprietary technology, vertically integrated operations” — including The Spaceship Company, their spaceship-building arm — and “plans for a consumer-oriented experience leveraging the Virgin brand.” This bold stance forecasts that by 2030, Virgin Galactic will dominate half of the space tourism market.
What’s Next for Virgin Galactic?
As the space tourism sector is still in its nascent stage, only a few like Virgin Galactic and Jeff Bezos’s Blue Origin.
They have expressed clear intentions to shape this industry. In such an emerging market, predicting a 50-50 split between these two front-runners isn’t just logical but suggests a strong vision. Trust analysts, however, note a potential delay: the company’s postponement of test flight operations to May 2021 might push the commercial launch to early 2022 rather than this year.
While this delay might sound like a concern, it hasn’t deterred Truist from maintaining a buy rating on Virgin Galactic’s stock. In the world of space tourism and high-stake ventures, patience and long-term perspectives often pay off.
the surge in Virgin Galactic’s stock signifies not just the resilience and potential of the company but also highlights investor confidence in the future of space tourism. Despite short-term delays and challenges, the journey of Virgin Galactic is one watched closely by investors and space enthusiasts alike, as the firm embarks on turning sci-fi dreams into reality. As we keep an eye on this thrilling sector, Virgin Galactic’s stock continues to be a beacon of pioneering spirit and innovation.
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