Why Virgin Galactic Stock Fell Again on Thursday
For the second day running, space tourism stock Virgin Galactic (NYSE: SPCE) dropped in morning trading, falling 3.6% through 11 a.m. EST on Thursday. When you consider that Virgin is probably just hours away from conducting its next test flight, that seems counterintuitive. But there are a couple of reasons investors may be getting nervous.
First, the coronavirus has been a consistent theme these past few weeks. Investors are tracking the incidence of new infections in New Mexico in anticipation that consistently rising numbers may affect Virgin Galactic's test-flight schedule. New cases of coronavirus in the state declined on Tuesday, but then rose again on Wednesday, surpassing Monday's number.
I think that's neither good nor bad for Virgin Galactic. It would be truly bad news if cases continued to rise in a trend that might frighten state authorities into tightening restrictions on business activity, even more than they've already been tightened. Numbers that just seesaw back and forth, however, indicate no such trend and no such heightened risk.
Source Fool.com
