Buying the Dip on Virgin Galactic Stock Looks Like a Mistake
Investors became enamored with space economy stocks during the COVID-19 market bubble, specifically from special purpose acquisition company (SPAC) mergers. With money seemingly flooding from all over the world to these speculative asset classes, pre-revenue companies were trading at market caps north of $10 billion for a short period.
One of the leading bubble stocks was Virgin Galactic (NYSE: SPCE), a space flight company that is trying to build a tourism business by charging hundreds of thousands of dollars to take trips into low orbit.
Virgin Galactic has fallen 90% from its highs during the COVID-19 SPAC frenzy but is still one of the most popular stocks on Robinhood. Here's why you should stray from the Robinhood crowd and avoid buying the dip on this stock.
Source Fool.com