Why Volatile Virgin Galactic Stock Dropped 12% More This Morning
For a while there, it almost looked as if Virgin Galactic (NYSE: SPCE) had discovered the secret of antigravity, or perhaps perfected the perpetual motion machine -- with that motion being "up." Riding a wave of enthusiasm from an optimistic Morgan Stanley investor note, Virgin Galactic rocketed all the way from $7 a share to more than $35 -- a fivefold increase in three short months.
And it did it all without generating a penny in reported profit -- hardly more than a few pennies in revenue!
But then reality set in. Yesterday, Virgin Galactic stock suffered an 18% drop (before recovering a bit). Today, it suffered a similar 12.5% price collapse (before recovering again). As of noon EST, Virgin Galactic stock remains down 6.3%.
Source Fool.com
