Galactic sours amid improved Q4 earnings – Does it hold a bright future?

Virgin Galactic Holdings, Inc. (NYSE:SPCE) stock held close to the more than 2-year low of $8.21 on Thursday. The bottom low reflected dampened sentiment as investors rushed for safe havens in the wake of the Ukrainian crisis.

This happens amid a 14% surge in the stock on Wednesday after reporting a net loss of $81 million in the last quarter of 2021. The loss was below $104 million reported in the previous year. 

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Galactic may not have sustained a bullish momentum following the quarterly results but presents a viable long-term opportunity. After too many delays, the company confirmed its first commercial space flight in Q4 2022.

Although investors may be skeptical given the previous postponement, Galactic sounded more serious after opening reservations for the spaceflight. This should sound optimistic to investors eager to go to space this year, which could trigger a massive stock jump.

Nonetheless, while the stock trades at the bottom now, we acknowledge that it lacks a catalyst for an uptick in the short term. However, the stock is attractive for a long-term hold based on the pending launch.

Galactic at a bottom-low – Rebound muted by the Ukrainian crisis

Technically, Virgin Galactic is flashing bearish signals but holds strong at the key support of around $7.67. The stock attempted to go higher but collapsed below the descending trendline. The moving averages above provide additional resistance, suggesting that the stock could remain subdued for a longer time.

Concluding thoughts

Virgin Galactic stock may not be a good buy in the short and medium-term as it remains bearish. Nonetheless, with the stock holding at the key support for more than a month, it could begin a bullish reversal from the current level.

The announced commercial spaceflight in the fourth quarter makes Galactic a compelling long-term story. Thus, buy the deep at the current level and hold long-term.

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