Is Virgin Galactic ($SPCE) stock is going to the MOON?
Here is why this stock has had a meteoric rise over the past week and is now up over 235% year to date...
This stock has had a meteoric rise over the past week and is now up over 235% year to date (making highs over 39 today in post-market hours). This stock was initially compared to Wall Street’s previous volatility cushion, Tesla Motors $TSLA. Well the tides have turned and a new crazy stock is here. Introducing Richard Branson’s youngest baby, $SPCE.
What is $SPCE?
SPCE is the ticker symbol for the company Virgin Galactic. The company Richard Branson created to compete with Elon Musk’s SpaceX and Jeff Besos’s Blue Origin. Virgin Galactic has a slightly closer business model of focusing on commercial travel as opposed to the other two’s goals of reaching Mars. Richard is great at thinking about our planet first with an example being his Ocean Unite initiative.
Why is the stock shooting up right now?
Three words: Pump and Dump. Often in the stock market, you see young stocks at low prices receive a surge in trading volume. This increases the share price just enough to scare out shorts and attract short-term traders. The short float of $SPCE was a whopping 29.31% before trading today! The fuel of a high short float and a sudden price increase leads to a mega combustion of stock price shooting the stock to new heights like one of the company’s White Knight rocket planes.
Should I buy it?
Nothing we write is a recommendation to buy or sell, but take a look at our Tesla ($TSLA) analysis and do some digging into the companies financials. In short, the company is young, has no cash, has very little income, and is bleeding money BUT it has a HUGE prospective future ahead. Investing is all about finding those lumps of coal that will receive the perfect amount of pressure and heat to turn into a diamond. I will tell you though, the three analysts covering $SPCE (that’s right, only 3 - $TSLA has 35!) have an average price target of $22. The stock hit a high of $39.90 post-market today on February 19th. Do the math; and maybe wait until this cools down a bit before investing for the long run. Or if you are a trader, speak to an Inlight Mentor first to figure out if a trade in $SPCE fits your strategy or not!
Pump and Dump - A move common in public stock markets where a stock is pumped up to an overextended price and then followed by a dump as people take profits and panic sell while the stock returns to its true value.
Short Float - The percentage of outstanding public shares available for/held in short positions.
Ticker symbol - The three or four letter combination used to identify a company's public stock.
Year-to-Date - How much a stock has moved from the first of the year to the current date.
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