Recent sources indicate that test-flights might begin in a couple of days. Surely this good news is affecting Virgin Galactic Holdings in the stock market. Around mid-day on Wednesday, SPCE stock increased by 8.7 percent. The correlation is definite. Let’s find out more about it.
Space Tourism Investors And Stock Market Virgin Galactic
A couple of days ago, the space tourism department sent out a tweet suggesting that its test-flights might start within this week. This means that Virgin Galactic might start operating by 30th November. This piece of good news has spurred up the stock market activity for SPCE stock, which resulted in the recent increase.
Virgin Galactic operates from New Mexico, and they are planning on resuming their space tourism test-flights in a few days. If you have invested in SPCE stock, you should definitely keep a track of the COVID-19 trends in New Mexico. Because, at this point, that seems to be the only factor that can derail this operation.
Further good news is that New Mexico is one of the few states that have reported a downward trend in coronavirus cases. On Tuesday, the number of cases came down by 30 percent than the Friday reports. If this downward trajectory continues, Virgin Galactic and several other companies based in New Mexico will be able to swiftly get back into the business. The state had announced restrictions due to the coronavirus. However, these restrictions are going to end by 30th November.
What Does This Mean For SPCE Stock Investors?
This is definitely good news for the company. Even so, all investors must tread lightly. Given the pandemic situation, the stock market is highly volatile. Any news has the potential to derail Virgin Galactic’s plans.
If you have invested in SPCE stock, remember that the company is only resuming its test-flights. As soon as the coronavirus restrictions are lifted, the space tourism department will begin its preparations. This alone will take some time. Remember that their schedule is still running late. Richard Branson, the Virgin Galactic owner, is also scheduled to take a test flight.
The company still has a long way to go before it can ensure a safe flight for its customers. And it can start generating profits only after that happens. So, if you have your money on SPCE stock, know that things are turning but don’t make any rash decisions as of yet.
Given the state of unemployment in the United States currently, things could go either way. However, note that a Biden administration means good things are on the way for space tourism.
Taking the stock market investors’ sentiment into consideration, it looks like Virgin Galactic SPCE stock will par well in the coming days and weeks.