Why Virgin Galactic Stock Jumped 16% This Week
Shares of Virgin Galactic (NYSE: SPCE) rose 16.2% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, extending last week's post-earnings momentum as the company appointed a notable new board member.
Recall Virgin Galactic roared more than 30% higher in a single day last week after the leading space stock not only announced better-than-expected third-quarter results, but also unveiled an ambitious new cost-savings and capital-allocation plan designed to shift resources toward building out its fleet of next-generation spaceships, which it's calling its "Delta Class" vehicles.
Shares of Virgin Galactic extended that momentum on Monday, rallying more than 5% as the market continued to absorb the news. Then on Wednesday, the stock jumped again after the company announced it had appointed Luigi Brambilla to its board of directors. Brambilla also serves on the boards of Virgin Voyages and Virgin Atlantic, and brings nearly two decades of investment and capital-markets expertise to the table. His contributions could prove integral to any future efforts to minimize cash burn, scale its spaceflight operations, and potentially raise additional capital down the road.
Source Fool.com
