Virgin Galactic Holdings Inc. (NYSE: SPCE) stock is up by about 3.2% in the last 24 hours. By the close of trading on Wednesday, the stock price was $13.30 while by press time it was $13.73.
The Virgin Galactic Holdings which is part of the Virgin Group has shown slight fluctuations from the beginning of the week. On Monday, the stock was $14.74 and later achieved a weekly high of $15.56 on Tuesday.
The gains followed the announcement that Virgin Orbit will start producing bridge ventilators for COVID-19 patients. The entity is awaiting approval from the FDA before it goes into mass production. Virgin Orbit is part of Virgin’s duo of space companies, which also includes Virgin Galactic. The goal of producing a simple ventilator is to free up more intensive-care ventilators for severely ill patients.
The Tuesday gains did not last long when the stocks traded at $13.30 on Wednesday. Notably, the stock has dropped by almost half from the February 2020 peak of $37.26.
Virgin Galactic stock insulator
The continued drop in SPCE stock price is due to the ongoing widespread sell-off on most stock prices across the market due to the effects of the Coronavirus.
With uncertainty around the impact of the Coronavirus, Virgin Galactic stocks were expected not to be impacted heavily due to a lack of sales. The lack of sales acts as an insulator for the company that will start flying humans to the edge of space later this year.
However, it seems that the expectations will not hold long since the effects of COVID-19 pandemic have led to a drop in the stock price.
At a time most companies have postponed announcing their 2020 first-quarter results Virgin Galactic will make public its results on May 5, 2020, through a conference call. The announcement should come as a boost to investors as it might propel the stock to a new high.