Virgin Galactic Earnings: What Investors Need to Know
Virgin Galactic Holdings (NYSE: SPCE), which is pioneering space tourism, reported fourth-quarter and full-year 2019 results after the market closed on Tuesday. Shares are down 7.5% as of 2:36 p.m. EST on Wednesday, while the S&P 500 is flat. We can probably attribute the market's negative reaction at least in part to the company's revenue and adjusted earnings before interest, taxes, and depreciation (EBITDA) results falling short of Wall Street's expectations.
However, there are two key things to note on this topic. First, this is a "story stock," so current results matter extremely little. Second, the novel coronavirus' effect on the stock market since Monday doesn't allow for a clear picture of how the market is reacting to other specific events, such as earnings releases.
Where the stock's price ends up on Wednesday will probably be of little relevance in the bigger picture. Since the company went public in October at $11.79 per share (via a reverse merger, not a traditional initial public offering, or IPO), the stock has rocketed 189% higher through Wednesday, when it was down 15.3% at 3:52 p.m.
Source Fool.com
