Market

Virgin Galactic (SPCE stock): Q2 Earnings Below Estimates

  • The Virgin Galactic stock price is presently trading at $3.72 while observing a return of -2.11% during the intraday session.
  • The release of the 2nd quarterly earnings report on August 1 showed earnings to be less than estimated.
  • The year-to-date return of SPCE stock price is 2.76%, and the three-month return is 4.79%.

Virgin Galactic is a California-based aerospace company that focuses on space tourism and space travel for private individuals and researchers. Virgin Galactic mainly focuses on research, development, and manufacturing of futuristic space launch vehicles and habitable space stations. It was founded in 2004 by Richard Branson.

Source: (SPCE: NYSE) by TradingView.

The Virgin Galactic stock price has been affected by the recent release of the 2nd quarter earnings and revenue report on August 1. The price reflects bearish sentiments in the market, from the resistance level of $4.32 on July 31 to the recent support level of $3.68. 

The consensus earning per share (EPS) estimate was -$0.508, but the actual reported EPS came with a slightly lower -$0.46, showing a slight increase of $0.04 EPS.

In addition to the negative EPS result, SPCE stock price reported a revenue of $1.871 Million. It eventually failed to meet the consensus estimate of $2.523 Million by a margin of $0.652 million.

Whipsaw Pattern Drag Price Back Down to Consolidating Zone

The Whipsaw pattern was witnessed in mid-June when the price rapidly moved in upward momentum and reached the $6 mark, followed by a drastic downward move causing the stock price to fall relative to its prior $4 level mark. This whipsaw or bull-trap phenomenon dragged the price back to the consolidating zone.

On June 29, Virgin Galactic’s first commercial SpaceShipTwo mission, “Galactic 01,” a suborbital space voyager, a research flight for the Italian Air Force, was accomplished by Virgin Galactic’s VSS Unity vehicle. 

SPCE Stock Price Reflects Long March Of Bears

Source: (SPCE: NYSE) by TradingView.

The SPCE stock price is currently trading below the 20, 50, 100, and 200-day EMAs, indicating weakness in the market. However, it reflects the rise in sellers’ participation in the market.

The relative strength index (RSI) trades at 44.66 and denotes the slight weakness in the market during the intraday session.

The chaikin money flow (CMF) score is -0.01, indicating sellers’ slight participation in the market during the previous 24 hours. 

The current market capitalization of Virgin Galactic stock price is $1.366 Billion, with an average volume of 16.907 Million shares.

Conclusion

The tickets for the “Galactic 02” mission of Virgin Galactic are mostly sold. About three-fourths of the 800 tickets so far were at prices between $200,000 and $250,000 each. Now the company raised prices to $450,000 each. Thus, there is a high probability that SPCE stock prices will perform well in the near future.

Technical Levels

Major support: $2.92 and $3.30

Major resistance: $6.42 and $6.17

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss. 

Ethan More

Hello , I am college Student and part time blogger . I think blogging and social media is good away to take Knowledge

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