What is going on moon gang? My name is matt, and i hope both you and your portfolio are having a great day the only publicly traded commercial space flight company virgin galactic just had its second best trading day ever since it went public almost a year ago. In this video i will be discussing what prompted such a bullish stock surge. I will be doing a quick technical breakdown of its chart and, of course, i will be sharing my thoughts on if this is a good investment or not before i get started. If you haven't already, you can join the moon gang by subscribing to the channel.

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I know no one likes videos that ramble on so i'll make this as quick and concise as possible virgin galactic is a richard branson company. That's working to make commercial space travel a reality as early as next year, virgin galactic is in direct competition with elon musk's, spacex and jeff bezos's blue origin, but those two aren't publicly traded. So, if you're looking to invest in the commercial space flight industry virgin galactic stock is currently your only option. On monday september 28th virgin galactic received two more buy ratings, as wall street remained unanimously bullish on space tourism stock.

This led to virgin galactic jumping 25 in its second best day. Ever after getting wall street's full endorsement virgin galactic shares surged nearly 25. The move came after wall street continued to set higher expectations for the space tourism stock with a unanimous 8 by ratings. The stock jump came after bank of america and susquehanna initiated coverage on virgin galactic, notably the two firms joined six others in recommending virgin galactic stock to investors, giving the company eight wall street buy ratings and 0 to hold or sell.

I must admit it feels pretty good when there's no dissenting opinions in wall street, a bank of america analyst ron epstein, said that no company in our coverage universe has anywhere near comparable growth potential. In other words, if you're looking for stock with high growth virgin galactic is a great option. Let's continue the space. Tourism has yet to begin commercial service and lack significant revenue with quarterly losses.

More than 15 million dollars, as it finishes developing its spacecraft. So, even though virgin galactic stock does have high growth potential, it's still a speculative play. I would never recommend throwing a considerable amount of money at it, because the position would have a considerable amount of risk virgin. Galactic is closing in on its final development milestones with two key remaining test flights in the coming months, virgin galactic, told shareholders in august.

It expects to fly founder, sir richard branson in the first quarter of 2021, which will effectively mark its beginning commercial service. With respect to these test flights, i did find this article virgin galactic plans next test space flight for october 22nd, as it nears flying founder richard branson virgin galactic plans to conduct its next crude spaceflight test on october 22nd. The flight will be the first of two that the space tourism company has planned to complete testing of its spacecraft system. If the next two space flights succeed virgin galactic has said it plans to fly its founder in the first quarter of 2021 with the hype and excitement surrounding this company.

If these test flights are a success, i would expect the stock to pop, and if richard branson does take that flight in the first quarter of 2021, i would expect the stock to surge. If you're a swing trader, these near-term catalysts could definitely be a benefit for you, but if you're more of an investor with a longer time frame, you might be wondering about the market that virgin galactic is in, and i have some good news for you. There's big demand among the high net worth for virgin galactic space flights. A cowan survey found that about 39 percent of people with a net worth of more than 5 million dollars are interested in paying at least 250 grand for a virgin galactic flight to the edge of space.

The firm estimates that virgin galactic sub-orbital flights have a total addressable market of about 2.4 million people who have a net worth of more than 5 million. To date, more than 600 people have reserved a space flight with virgin galactic their deposits total more than 150 million dollars. Now i don't know about you, but my pockets aren't deep enough to afford one of these luxury trips, but investing in virgin galactic stock might get me one step. Closer virgin, galactic trades under the ticker spce and the stock is currently just above 20, but spce has had a wild year.

It started off in january just below 12 and it quickly ran all the way up to 42. from there because of rona. It came tumbling down to below 10, but it managed to bounce and consolidate in the 17 range from there. It broke out and was able to test 47, and it was rejected and came all the way down and bounced off of 15..

That brings us to now where we're currently at the resistance of 21 from the start of the year until now, virgin galactic stock is up a noteworthy 75, let's zoom in a bit to get a more detailed view about. What's been going on recently, when bank of america initiated coverage with a buy rating and a price target of 35 dollars, the stock ran 24 in one day if the bull camp is able to push the stock above this resistance at 21 dollars, i would then be Watching to see how it reacts to 24 and of course above that would set up 27, but if it is rejected here i would look for support to be found at 18, because this was previous resistance and consolidation. But if the bears pushed the stock below that, i would then be looking for a bounce off of the high 14s. I personally invested into virgin galactic in late august, and my cost basis was the low 17s and until we clearly establish a new higher support, i will still be using this 1486 as my line in the sand.

But with that being said, i fully intend on being a long-term investor. I will cut my position if i have to, but i'm planning on holding these shares past 40 50, even a hundred dollars. I think these price targets will be hit. It will just take some time to give you a little bit more of a detailed perspective from the most recent close.

The first support would be a drop of 11, and then this secondary region, where i would expect there to be a lot of demand, would be a decline of 30. But, on the other hand, the analysts at credit suisse are saying that the stock will outperform and have a price target of 24, which would be a 17 gain. The analysts at ubs are saying, buy and they have a price target of 25, which would be a 22 gain, and, finally, bank of america, which just initiated coverage, is calling for 35, which, from the most recent close, would be a 71 gain. Even though this is a speculative play that might not pan out, in the end, the risk to reward is asymmetric, the considerable reward is currently weighing out the risk, which is why i'm happy to be an investor overall, i'm personally bullish on virgin galactic stock.

The company has first mover advantage in the commercial spaceflight industry, massive growth potential and an experienced management team that can capitalize on it. I think the stock will test the 27 resistance in the near future and if it can break out above that, it would set up a test of the all-time high at 42. Please don't forget that virgin galactic is a non-profitable company and it's essentially pre-revenue. It's a speculative play, to say the least: don't let your risk get out of hand, but with that being said, i'm not a financial advisor, and these are just my personal opinions make sure to do your own research.

I would love to know your thoughts on virgin galactic stock and comment below and also feel free to leave any suggestions or recommendations for what i should cover next, thanks for watching to the end of the video, your support is truly appreciated. If you enjoyed this video, you can, let me know by hitting the like button and if you want to help me hit my goal of 5 000 subscribers. You can join the moon gang by hitting the red button below thanks for watching and until next time. Best of luck in the market, you.