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Are you kidding me are you joking me oh my goodness girls look at that virgin galactic stock oh hold my word ticker symbol s pc e otherwise known as space at all my goodness guys this dock just flew to outer space today up over 23% here today alone up seven dollars or five cents of them if that was not enough the stock has even going up after hours another almost four
Percent in after-hours trading unbelievable unbelievable day for this virgin galactic stock and if you have nothing keeping track this stock has been doing ridiculously well all that might just not be like heavy enough how about ridiculously ridiculously ridiculously ridiculously ridiculously well we’re talking about this stock has gone a5x has over a 5x in a little
Over two months guys a little over two months and the stock is over 5 x i mean 5 x that’s the type of performance you could expect from a great stock over a 5 or 10 year span not a 2 a 2 and a half month spin like it’s absolutely incredible guys absolutely in credible and i mean to give you some reference i know a lot of people you know talk about tesla’s you know
Had some ridiculous run over the last you know let’s say two and a half months or so and it has tesla stocks almost 3x in the last two and a half months but keep in mind let’s go back and look at that virgin galactic holdings chart it’s literally 5 x 10 in just over two months guys that’s absolutely incredible by the way if you don’t know virgin galactic it’s just
Think of it as a space related company okay and this is a company that has investors such as richard branson okay obviously cometh is involved heavily with this company which many of you guys like is a venture capitalist out there okay now there’s something that i key kind of said you know while back when they were thinking about taking virgin galactic public ok he
Says if we are lucky to have the same trajectory and same customer love i think we could all look back and say we’ve done something absolutely fantastic in human technology it was trying to say you know basically he was looking for a lot of like tesla like investors into virgin galactic and i gotta say you know you can’t group all of us hustle investors in the same
Group okay there’s some people that have been in tesla stock since 2010 since there was just the hope of tesla becoming a successful company where they really didn’t have much going for them at all there was just the hope and i’ll be honest that’s probably less than 1% of the tesla shareholders out there that are holding shares today we’re actually involved with
This stock back in 2010 back when they did the ipo when it was just the hope of a business model most of us jumped on either around the time model 3 came out or shortly after model 3 and i know that was the gangji new product for me personally and why i got involved with this stock so don’t just group all of us test the shareholders together like we were all there
Since day one in 2010 when it was just a hope of a business model because much of us weren’t ok and a lot of people are loving to compare tesla right now – you know virgin galactic that’s how the company and you look at an article like this at a cnbc today ok it says forget tesla wall street has found a new favorite speculative stock as virgin galactic surges 23%
And i take major major issue to that headline right there ok i mean why why would they put tesla in the same sentence as a speculative stock and it just kind of shows you how uninformed like cnbc it still is at this particular time just say oh tell us though is a speculative stock you know was put in the same sentence as speculative stock same sentence as virgin
Galactic while tesla out here about to do 30 billion plus dollars in revenue this year 30 billion plus virgin galactic no disrespect to them but they might do less than 7 million dollars in 2020 in revenue these are not stocks that should be mentioned in the same sentence ok virgin galactic trades at a sky high no pun intended price to sales ratio of 1098 possibly
The highest price to sales ratio i have ever seen in my entire i don’t know 11 or 12 years that i’ve been investing in a stock market i don’t believe i’ve ever seen a 1598 price to sales ratio okay while tesla has a 6.7 price to sales ratio cnbc this is why some of us get so frustrated with you if you want to write an article about virgin galactic write an article
About virgin galactic and say it’s you know wall street’s new favorite you know speculative stock that’s perfectly fine but don’t incorporate tesla into the argument like tesla some speculative stock when they’re about to do 30 plus billion dollars in revenue in 2020 it’s just ridiculous okay so so michael over there in kate you know what we’re putting you guys on
A time out you guys got to go to timeout you know you just go to timeout for a while study up on tesla don’t put them in the same sentence please as a speculative stock that’s absolutely ridiculous okay so virgin galactic here it’s a stock sitting at a little over thirty seven dollars here today and we all understand this is a very speculative stock okay there’s
No business model there as of right now but there’s a hope that maybe this could be a big business model in the future and we’re going to talk a little bit about this one why it continues to go up what’s the hope and i’ve done a lot of kind of research into this company over the last few days and a lot of looking at the comments of like the financial education
To video came out with basically last week called is it too late to buy virgin galactic stock in that video i talked about if it’s too late to buy a stock guys talked a little bit about it and i read through a lot of the comments and what i found was there were two cases why somebody was actually invested in this stock okay the first one was a lot of people were
Involved with because this is a hotsauce stock okay this is a hotsauce stock right now it is going up and up and you have a lot of swing traders that try to get involved when a stock continues to climb higher and higher and they look at space and it has the hype right now and then a stereo around this and like let’s play this as a swing trade and so i saw a lot of
Comments where people are like i bought in recently this is a swing trade for me this is something i’m gonna ride this until the roller coasters over whenever the stock pulls back blah blah blah percent you know whatever number they were kind of looking at whatever metric they were looking at like then i’ll go ahead i’ll sell out take my profits and our respect i
Understand you know not everybody that watches my youtube channel is gonna you know do the exact same things i do and like think about a company next 3-5 years some people just like to try to you know swing trade around some of these stocks and they look at an opportunity here like virgin galactic stock and they’re looking at this and they’re like you know this
Some of them got in and when it was 15 after it made a big run someone got in with 12 some guy in recently when it was in the 20 range and they’re like dude if i make 20% or 30% in a few weeks trying to ride the stock i’m gonna go ahead and do that and if you’re one of those people that that tries to you know do that then you know that’s perfectly fine you know
You do whatever you want to do i like to invest the way i like to invest but if you’re gonna try to you know trade this in and out and that’s a route you want to go you know it’s it’s fair play and i and i understand that’s blown what some people are doing that involved in this talk and i saw a lot of comments well i went through that video i’m basically people
Talking about you know they’re kind of treating it as a as a swing trade and the other group of individuals i saw in the stock were more of what i would call investors thinking about this for years out and they were actually in this for the big long-term story here which is space travel obviously this is what the company’s gonna focus on at first space travel and
Trying to make you know space travel like a big thing you know people do and obviously you know certainly who for the first few years if not you know a long time in the future if they can you know be successful space travel that still remains to be seen we got to see you know if they can you know do this essentially they still got to prove that everybody’s like
You know right and stone like oh yeah they’re just gonna be able to do this they still gotta prove they can do that then they have to build a business model around space travel which is gonna be you know the tickets gonna be very expensive couldn’t be looking at you know two hundred fifty thousand i mean even if it was a hundred thousand dollars i still insanely
Expensive you know for a ride that might be i don’t know ten minutes or something like that but this is a company that’s focused on space travel some folks are looking at that other folks are looking at the component of well what if they’re able to build you know like let’s say you know some type of aircraft or spaceship or something like that that can fly you from
New york to hong kong in an hour too so some folks are think about that because obviously you look at a flight time from like new york to hong kong you’re looking at like 16 hours right and so imagine if you go fly from one destination in the world that you know usually would take let’s say you know 15 to 20 hours to fly there what if you could fly there in one
Of their aircrafts and do it in a much shorter time so some folks are thinking maybe this could be a play on that over time where you could tell you essentially take a 16 hour flight and put it down to an hour or two and so that’s where a lot of folks are kind of at with this stock you know the last component of some folks i saw that we’re invested in the stock
Is some people are kind of playing this as you know basically spacex is supposed to have an ipo for their starlin side of their business at some point in time possibly very soona so some folks are looking at this and they’re like hey you know what i’m thinking that there’s gonna be a lot of hype there builds going into that starling so i’m gonna go i want to be
Involved in the space category in some way or form and this is really the only direct play on space stocks as of right now so before you know that hype starts around starlink i’m gonna be involved with this one maybe the you know the hype can continue to build maybe the investor appetite for space stocks continues to climb and this is the only direct play as of
Right now now if it’s only direct play then if you want to put money in this face category you’ve got to put it in virgin galactic stock okay once again must spacex plans a spin-off ipo for the starlink business this just came out february 6 to 2020 so it’s a very high probability that we’ll get some type of ipo in the public markets for the starlink business at
Some point here in 2020 and you see that sometimes in the stock market where essentially you know there’s exciting industry over here and maybe there’s only one player in town and so if people are looking at this and like thinking i want to invest in that industry this thing that’s gonna become a big thing in the future there’s only one name then everybody has to
Crowd into that and as everybody continues to crowd into that play what ends up happening the stock price it goes up and up and up the stock market is no different than anything else in the business world its supply and demand if there’s a ton of demand for shares of a particular you know sector or something like that it’s like one player as what’s gonna happen
A price is gonna go up know since a lot of folks love to compare this virgin galactic’s versus tesla and whatnot okay you really can’t compare these two companies and in terms of their stages right now but if you want to look back in time then we can look back to when’s the last time tesla really had no business model and there was the hope that tesla was gonna
Have a business model sometime in the future you have to go back to 2010 before the model s okay and there was really no business ball there there was a hope that maybe maybe down the road tesla could be a big electric vehicle player so what do i have on your screen right now this shows you tesla’s market capitalization over time and so what we’re gonna find here
Is back in 2010 tesla’s market capitalization was around 1.6 and billion dollars okay around 1.6 billion dollars that’s back when tesla had once again had like basically no business model and there was just the hope that someday this could be something dead okay now here we are a virgin galactic is in somewhat of a sim situation where there’s no business model
Therefore virgin galactic right now there’s the hope that they could have big business models you know space travel maybe you know flights down the road that obviously we talked about that could you know strength the amount of time it takes things like that and so as a hope that there could be those things but none of those are concrete as of now none of those
Are proven as of right now there’s just a hope that there could be big businesses there long term and right now on virgin galactic we’re looking at a market capitalization on this company of seven point two five billion dollars which is obviously dramatically higher than where tesla was at but keep in mind you know we’ll let’s go back to that tesla market cap chart
There right that’s 2010 and had that 1.6 billion that was right after the great recession a lot of people did not want to take a big risk in some you know electric startup that you know might be the next big thing but who knows money might be bankrupt in a few years a lot of investors did not want to have to take that type of risk they just didn’t at the end of the
Day okay i remember i looked in the tesla back and she would probably was like 2011-2012 somewhere around there and even i looked at i was like i don’t think i’m gonna take that risk was until after model three that i really really got intrigued with this business and the stock had moved in awhile i was like okay now it’s worth okay but here we are to 2020 you know
The seven point two five billion dollar market capitalization here i’m showing you on virgin galactic and a lot of folks are willing to take that type of risk in this name and it is what it is we will have to see where this one trades out for the remainder of the year i’m very skeptical on what’s gonna happen here because you are essentially placing a very big bet
With a very big market cap now that you know everything’s gonna kind of work out for this company it’s gonna become a big player in space travel tourism and maybe flights in the future and all those sorts of things and sitting at a market capitalization like that they’re gonna have to have some massive i mean ridiculous growth for the next five to ten years just
To justify this initial valuation never mind you know whatever the valuation comes down the road but i will say i’m happy for all the folks that have made a lot of money in this i was in the discord chat earlier and my goodness there’s been some people that have played some call options around virgin galactic and just bought the stocks trip that i made a ton of
Money i’m not gonna mention any names but what gentleman in the group he has made so much on his space options by the way he showed me screenshots so it’s confirmed it’s not like he’s just uh you know trying to talk himself up one guy had bought so many call options he’s made so much money on the virgin galactic that literally he could pay for this new poor she
Literally cash i wish you would have got a telus like come on man can’t go getting a porsche gotta get a tesla but needless to say guys it’s a very intriguing one i’m gonna continue to watch this talk and see how it plays out and see if it continues to skyrocket and next thing you know it has over a ten billion dollar market cap or if this one comes back down to
Earth it is one of those type of stocks that ends up getting cut in half or a cut by 75% in a very quick amount of time sometimes you know just depends how all the shakes out i remember the 3d stalks many years ago i remember i was living in charlotte north carolina three d stocks got incredibly hot for a certain amount of time and they all climbed and climbed and
Climbed in and was just like oh my gosh this could be the next big thing 3d printing obviously that fell you had the mj space you know just was just couple of years ago the mj space was flying up it was like canada was gonna legalize things and the mj space has just gotten absolutely destroyed over the last you know year if you look at those stock charts and almost
Any mj stock you know the little ones and also the big ones what you’re gonna find is most of them have crashed huge now we’ll see what happens with virgin galactic but they’re definitely gonna have to prove a lot over the next few years to justify the the current valuation on that one guys but i would love to hear your information down there in that comment section
What you think is gonna happen with the stock in the short term let’s say over the next month or so and what you think is gonna happen with the stock over let’s say the longer term like one two three four years out i would love to hear from you guys in that comment section it’s always semester thumbs up if you enjoyed today’s video as always thank you for watching have a great day
Transcribed from video
Why Virgin Galactic Stock Keeps Going Up! SPCE STOCK! By Financial Education