Virgin Galactic is not a very good company by conventional criteria such as sales, profits or number of customers, but it is popular with investors. Earlier today, Virgin Galactic, known as “Space Travel’s First Stock,” reported its first reported, with a net loss of $73 million in the fourth quarter of last year, up from $46 million a year earlier.
Even so, The space carrier owned by Richard Branson, Virgin Galactic, is popular with fund and other investors. They believe Virgin Galactic will create a new space tourism industry that will carry people across continents at high speeds.
It is this unbridled enthusiasm that has pushed Virgin Galactic’s share price up nearly 200 per cent this year, reminiscent of Tesla’s rapid rise. In just eight days, Virgin Galactic’s share price has more than doubled, surging its market value to nearly $8 billion from $2.4billion in early January.
“It’s all driven by ‘future trends’, ” says Alex King, an analyst at Research Firm, a research firm. It hasn’t come true yet, but it will become true in the future, and it is not yet. ”
It was also because of this “warning point” that Virgin Galactic’s shares fell 6 per cent in after-hours trading after reporting a loss of $72.8 million in fourth-quarter results.
But there is no denying that at some point in the future, Virgin Galactic could become a very profitable company with an almost daily space flight, high margins, a wealthy customer base, and the pioneer advantage of flying across the Atlantic and Pacific in an hour or two via hypersonic suborbital travel.
Stephen Attenborough, Virgin Galactic’s commercial director, said in an interview this week that Virgin Galactic had collected nearly 8,000 letters of intent through its website, more than double the number published when it went public late last year.