Virgin Galactic is at the forefront of space travel along with other numerous companies.

Virgin Galactic is a spaceflight company that is within the Virgin Group. The main aim of Virgin galactic is commercial space travel & scientific launches into spaces. The company was founded in 2004 and recently went public on the NYSE. Virgin Galatic has some serious potential in the future as space travel is just starting, it is a case of picking the right compnaies now for long term growth.

The financials of Virgin Galactic are mixed. Current Market capitalisation is $3.5bn with 2019 revenue of $3.78m. This means the valuation of the company is 925x bigger than revenue. In general, this is not seen in the stock market. Revenue is up from 2018 around $900,000. Last year Virgin spent $132.8m in research & development costs and $82.1m in admin costs meaning the company took a loss of $210.8m. That being said the company is in the development stage and the purpose of it going public was to raise capital and because of this cash on hand is $492.7m. Total assets of the firm are $605.5m, with liabilities at $137.9m. This gives healthy net positive assets of $467m. In the last 3 months (from Jan to March) the company has used around $61.1m of its cash pile, thus meaning the company will burn through around $244m this year. Unfortunately on the basis of Q1 2020, if revenue stays the same, turnover will be around $950k this year. I expect the projected loss to be around $240m.

From a technical standpoint, this chart is good. MACD & Bollinger suggest more upside. Trendline support holds below at around $15 a share. A break below this could mean quite a breakdown. Resistance would stand at $21 a share, representing the April and May highs. A break above $21 could see more upside for the longer run. The all-time high of the share is around $42.

Virgin Galactic is an investment that would have to be taken cautiously. On the positive side, technicals suggest stability for the short term however the financials are mixed. This company losses a significant amount of money every year in the 'hope' that in the future they are well-positioned in spaceflight. If this company was successful it could pay off, but it does require a lot of investment. It is also important to look at how the Virgin Group is handling the current COVID crisis because ultimately this is under that umbrella.