- NYSE: SPCE is on course to end the week on a higher note despite an early fall.
- Virgin Galactic Holdings Inc seems to shrug off the test flight cancellation in New Mexico.
- Markets are awash with cash that should bring rich customers to Virgin's space tourism venture.
There are no known cases of COVID--19 in outer space – but the virus has had an adverse impact on a tourism sector company aiming for the skies. Virgin Galactic Holdings Inc (NYSE: SPCE) has been forced to cancel a critical test flight. Authorities in New Mexico, where the module was set to launch from, canceled the trial due to the covid situation in the state.
Billionaire founder Richard Branson and his team were disappointed by calling off and even made it public via Twitter. Any delay means the company continues bleeding money. Shares reacted accordingly with a drop, but it turned around later on.
Shares bounced as bargain-seekers came in and probably as investors remembered the Branson has deep pockets. Moreover, it is essential to stress that the disappointment in New Mexico is only a delay – and unrelated to the company's performance.
Yet perhaps most importantly, the world is currently awash with cash – coming from monetary and fiscal stimulus. There may be new millionaires and billionaires making money in equity markets that could potentially sign up for Virgin space flights.
Moreover, while covid caused the recent cancelation, progress on vaccines is accelerating. Pfizer (NYSE: PFE) and BioNTech are set to submit an emergency application to use their vaccine as soon as Friday. Moderna (NASDAQ: MRNA) also reported outstanding results from its Phase 3 trial and other companies to have promising immunization schemes in the pipeline.
Once the pandemic is over, the money sloshing around the world is unlikely to be drained out and could reenergize tourism – including Virgin's orbital flights.
See Covid Vaccine: Pfizer's success promising for three other efforts, rally may have only just begun
SPCE stock forecast
NYSE: SPCE is set to rise by 1.75% according to Friday's premarket data at the time of writing. That would complete an increase of nearly 20% from Monday's closing low of $20.89. Virgin Galactic's shares are now at the highest since early August. The next upside target is $25.54 seen in July. The 52-week high is $42.49. Support is at $20.89, followed by $18.
More When the market shivers, the Fed delivers? Where next for markets
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD clings to recovery gains below 0.6550 on weaker USD, upbeat mood
AUD/USD holds sizeable gains below 0.6550 in the Asian session on Monday. A sharp pullback in the US bond yields prompts some US Dollar profit-taking after US President-elect Trump named Scott Bessent as Treasury Chief. Moreover, the upbeat market mood supports the risk-sensitive Aussie.
USD/JPY remains heavy below 154.00 as USD weakens with Treasury yields
USD/JPY remains under intense selling pressure below 154.00 in the Asian session on Monday. Retreating US Treasury bond yields drags the US Dollar away from a two-year top high and drives flows towards the lower-yielding Japanese Yen, though the BoJ uncertainty could limit losses for the pair.
Gold: Is the tide turning in favor of XAU/USD sellers?
After witnessing intense volatility in Monday's opening hour, Gold's price is licking its wounds near $2,700. The bright metal enjoyed good two-way trades before sellers returned to the game after five straight days.
Elections, inflation, and the bond market
The Federal Reserve believes inflation is no longer a concern for consumers and the time has come to ensure the rate of change of prices does not decline any further.
Read more
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.