19 (Xinhua) — Shares in Virgin Galactic, the “first share of space travel” listed last October, have soared to record highs in recent weeks, rebounding fourfold from their December lows and nearly 1.5 times higher so far this year, surpassing Tesla’s 91 percent gain this year.
After a 21.2 per cent jump on Monday, the stock rose further on Tuesday, surging 26 per cent at one point to break $35, but closed at an all-time high of $28.68.
Like Tesla, Virgin Galactic’s recent frenzied rise has raised concerns among analysts about a bubble in the stock.
Adam Jonas, an analyst at Morgan Stanley, questioned in a report on Tuesday whether the speculative space stock rally was “too fast”.
“We think Virgin Galactic’s story is very constructive … and we’re very constructive,” Jonas said. We just think the share price may need a respite. We must admit that the recent movements in share prices appear to have been driven by forces other than fundamentals. “
He also suspected that the “scarcity of space companies on the open market” could be combined with “a surge in investor sentiment around manned spaceflight”, contributing to the stock’s “extraordinary rise”.