Video: Jim Cramer Breaks Down Virgin Galactic’s Soaring Stock
Video Caption: Investors owning surging speculative stocks should take some off the table and protect profits, “Mad Money” host Jim Cramer says.
Virgin Galactic shares swung back-and-forth in heavy trading Thursday, with the stock giving dropping midday after climbing earlier.
Shares had jumped more than 13% and soared past $40 to a new high, heading for its ninth consecutive day of gains. But the stock later reversed and fell, dropping as much as 17% to about under $32.
The space tourism’s stock has climbed more than 350% in the past three months, with a large portion of the gains coming in the past two weeks. Virgin Galactic has become Wall Street’s favorite speculative play. In the first hour of trading on Thursday, more than 40 million Virgin Galactic shares traded hands, several times its daily average volume.
There was no public catalyst from the company driving the stock’s move. Virgin Galactic CEO George Whitesides spoke Thursday morning at an investor conference hosted by Barclays in Miami — but his presentation is not expected to be released, the bank told CNBC.
Virgin Galactic has little in the way of revenue thus far. When it reported third-quarter results in November, the company booked just $800,000 of revenue for the quarter and a net loss of $138.1 million for the first nine months of 2019.
3 responses to “Video: Jim Cramer Breaks Down Virgin Galactic’s Soaring Stock”
Leave a Reply
You must be logged in to post a comment.
I am curious as to where the revenue it book came from since it hasn’t flown any flights. Other than merchandising (logo licenses) and interest on the money they have in banks/short term notes I don’t see any source.
the airplane is pretty busy doing test flights for other vehicles
So they are risking the only White Knight 2 they have for tests of other vehicles? I wonder how long it would take to replace it? They do like living on the edge…