Should I Buy or Sell Virgin Galactic (SPCE) Stock?

Virgin Galactic expects that it will be ready for a commercial launch by 2022. The company’s CEO Michael Colglazier said that it could generate $1 billion in annual revenue per spaceport. Virgin Galactic has a market capitalization of $12 billion despite generating no revenue and a cash burn rate of over $120 million each quarter.

The space company has sold 600 astronaut tickets and collected more than $80 million in deposits. On average, each ticket costs around $225,000. Approximately 1,000 people are on the waiting list for the next ticket sale.

SPCE trades at an NTM EV-to-sales multiple of 1,072x, which looks expensive compared to other aerospace stocks. Lockheed Martin and Boeing are trading at NTM EV-to-sales multiples of 1.7x and 2.1x, respectively.

SPCE stock has witnessed a sell-off after the event passes. On May 24, the stock rose 28 percent after the company successfully completed the first test flight, while the stock fell 5 percent the day after the significant jump.

View more information: https://marketrealist.com/p/should-i-buy-virgin-galactic-spce-stock/

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