Why Virgin Galactic Stock Dropped Another 5% This Morning

Earlier in the month, Virgin Galactic received a double dose of good news when Swiss investment bank UBS initiated coverage of the stock on Sept. 8 with a buy rating and a $25 price target ($10 higher than where Virgin Galactic trades today). Lacking profits and with even revenue uncertain now that Virgin Galactic has postponed its first commercial flight into 2021 at the earliest, Virgin Galactic is not a buy on any valuation metric -- because there really are no clear valuables to measure here, no positive numbers to assign a price-to-something, anything-ratio to. In that regard, it's worth noting: Virgin Galactic's next test flight won't take place until Oct. 22.