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%.

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Source Fool.com