Why Is Virgin Galactic Stock Up?

After a tough few months that have seen its stock crash back to earth, Virgin Galactic shares are shooting for the stars once more.

Ever since our ancestors first took bipedal form, we have yearned to explore the stars.

Now, with science making this dream a reality, space travel has entered the realm of investing, with Virgin Galactic (NYSE: SPCE) at the forefront.

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The cosmos is within our grasp… 

We’re at a point in human history where discussions around commercial space travel are a reality. An inconceivable concept just 20 years ago. SPCE has played no small part in this change.

Virgin Galactic was the first space tourism company to go public and it has taken investors on the ride of a lifetime — despite having not brought anyone to space yet, ironically enough…

While price swings have usually been downward of late, yesterday’s jump comes after Virgin Galactic confirmed that the next test flight of its SpaceShipTwo Unity will be conducted on May 22. This is welcome news after numerous delays and gives hope to the company’s promise of full commercial services by 2022.

But, with four test flights left before this, investors shouldn’t get too comfortable just yet. Virgin Galactic is likely to experience years of turbulence before it can outline a profit-driven business model. And there’s no guarantee of this either, given the dangers surrounding space travel. One fatal crash could tank the stock.

This is about as long-term an investment as you can get, as it’s an investment in potentially the most untapped market in the universe.

That’s why investors need strong convictions to hold a stock like this, with the ability to ignore the noise that has drowned out Virgin Galactic’s long-term potential recently.

To hear MyWallSt Co-founder Emmet Savage expand on these points, tune into our most recent episode of the Stock Club podcast.

MyWallSt operates a full disclosure policy. MyWallSt staff currently hold no positions in companies mentioned above. Read our full disclosure policy here.