Why Virgin Galactic shares exploded on Monday
Morgan Stanley downgraded the shares of Virgin Galactic Holdings (NYSE: SPCE) stock Monday, and nobody cares.
In a note this morning, reported by TheFly.com, the investment bank warned that it has seen “very little company-specific news” to justify the doubling of the action during the year to date. And yet there is News. And shares of Virgin Galactic are racing, up 12.2% as of 10:55 a.m. EST.
This morning on Twitter, Virgin Galactic confirmed that the two test flights of its mother aircraft VMS Eve carried out last month were in preparation for a test flight of its VSS Unity spaceplane, which is now due to resume test flights this month.
The company says the flight window for VSS Unity will open on February 13. Additionally, Virgin believes it may have “opportunities to fly throughout the month, pending weather conditions and technical readiness.”
Preparations are underway for a rocket-powered test flight of SpaceShipTwo Unity from Spaceport America, New Mexico. The flight window will open on February 13 with opportunities to fly throughout the month, pending weather conditions and technical readiness. https://t.co/hy18Tg6gkf pic.twitter.com/tiAqJvLkyy
– Galactic Virgo (@virgingalactic) February 1, 2021
He could fly throughout the month, that is to say if Virgin successfully resolved the issues that led to abandon a test flight back in december. We will find out in a few weeks. If the issues have been resolved, then based on the content of the tweet, Virgin appears to be saying that it could potentially complete its last two VSS Unity flights within the next four weeks – setting the stage for a flight by the founder of Virgin Galactic , Sir Richard Branson, soon after, then income-generating commercial flights!
No wonder investors are enthusiastic, downshift or no downshift.
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