- Virgin Galactic (SPCE) is due to release earnings after the close on Monday.
- SPCE is closely followed by the retail community and is very volatile.
- The space sector is in the news as the space tourism race hots up.
Virgin Galactic (SPCE) gets its chance to steal some of the limelight occupied by its competitors tonight when it releases earnings after the close. The stock has been somewhat lackluster recently with limited moves, dropping volume, but is this merely preparing for blast off? Jeff Bezos' Blue Origin has stolen some of the limelight recently as it brought Captain Kirk (William Shatner) into space, and investors have since shied away from SPCE. The shares have dropped steadily since an August pop and now are trading at under $20. SPCE shares are down over 40% over the last three months.
Virgin Galactic (SPCE) stock news
Virgin Galactic is expected to post earnings per share tonight of -$0.28. Revenue is expected to come in at $1.64 million. As we can see from the table below, recent results have not exactly been kind to investors with a series of earnings misses. Last quarter's revenue beat was noticeable though.
Source: Benzinga Pro
Investors will be hoping for a better set of earnings this time around and some positive commentary around forecasts and flight launches. October 15 offered the last strong news, and it was not good. Word of a flight delay cut the stock lower by about 18%. UBS added to woes by downgrading it a few days later on the back of this news. News on flight details and timelines will likely be more important to sentiment for SPCE than the actual set of results.
Virgin Galactic (SPCE) stock forecast
Reducing volatility coupled with reducing volume and price action usually leads to a breakout, and perhaps the results can be the kicker the stock needs. But which direction? We can see more clearly from the 4-hour chart that the key range levels are $18.06 and $20.67. Breaking either should see some momentum, volatility and volume return to the stock. Breaking $20.67 leads to a volume vacuum until $23.89, the next resistance, so expect a sharp move up through here.
Virgin Galactic graph, 4 hour
The daily chart below gives us a wider view of teh huge spikes this one can see. Meme stock madness or rocket man? Here we can see the levels to the downside more clearly if the bottom of our range at $18.06 is broken. $14.50 will quickly be targetted. This is the multiple low from May and last September and October. The more a level is tested the weaker it becomes so bear thtin mind if SPCE stock begins to look at this support.
SPCE 1-day chart
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