Shares of rocket company Virgin Galactic Holdings Inc (NYSE:SPCE) fell back to earth today after more than doubling so far this month. Shares fell as much as 18.2% today but recovered a lot of those losses and were down just 2.6% at 12:20 p.m. EST. There seems to be no end to the ups and downs of this stock.
Ahead of next Tuesday's earnings report, Morgan Stanley analyst Adam Jonas warned that the stock may dip after earnings. He said a correction is "overdue" at this point and still has a $22 price target with an overweight rating on the stock.
At this point, anything seems to be able to swing Virgin Galactic's shares double-digits in one direction or the other. Since many investors and traders listen to analyst opinions, it's not a surprise that a negative note sent shares lower this morning. But once again, shares popped back, so there was some resilience in this high-growth stock.
The rubber really hits the road next week, but analysts are taking their sides on the stock before earnings come out. There's no question that shares have run higher at an unsustainable pace, but that doesn't necessarily mean they're overvalued. I highlighted earlier this month why I think this is a company that could disrupt travel for decades to come and generate billions in revenue along the way. If that bullish case happens, today's dip could be a buying opportunity for the stock.