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Yet, while the rally has captured plenty of market interest, one investor, known by the pseudonym Tangerine Tan Capital, believes caution remains warranted. The investor argues that the company’s financial position remains challenging and that the recent surge reflects “speculation rather than a strengthening underlying business.”
Tan points to Virgin Galactic’s debt burden and ongoing cash burn as key concerns, noting that he does not view the recent share-price gains as sustainable. The company still lacks the financial foundation needed to support its long-term ambitions and, according to Tan, investors are paying an extremely high valuation for a business with uncertain future revenue prospects.
Furthermore, much of the recent excitement can be traced to anticipation surrounding SpaceX’s planned IPO. Tan suggests that some market participants may be buying SPCE as a proxy for the offering, partly because the company’s SPCE ticker closely resembles the expected SPCX ticker for SpaceX. The investor also believes social-media enthusiasm and the possibility of a short squeeze have contributed to the stock’s advance, though he maintains that speculative activity rather than business progress has been the primary driver.
