Why Shares of Virgin Galactic Are Soaring Today
Shares of Virgin Galactic (NYSE: SPCE) were up more than 12% on Wednesday following the company's first-quarter earnings report. The results fell short of expectations, but investors for now are focused on the potential of the business, and not its current results, and there was little in the report to make shareholders question the potential.
Virgin Galactic reported a first-quarter loss of $0.30 per share on revenue of $238,000, well short of analyst expectations for a $0.15 per share loss on revenue of $320,000. But given the company's market capitalization is about 11,000 times higher than those expected sales numbers, it's pretty clear that Virgin Galactic shares don't trade on current results.
Instead, investors were eager to see if the COVID-19 pandemic, and the subsequent fall in equity values, had an impact on demand for space tourism.
Source Fool.com
