Virgin Galactic nyse Spce Stock Surges on Roaring Kitty driven Short Squeeze

Virgin Galactic (NYSE: SPCE) Stock Surges on Roaring Kitty-Driven Short Squeeze

Virgin Galactic Holdings (NYSE: SPCE) stock jumped over 20% in intraday trading Tuesday, amid a rally in heavily shorted stocks sparked by Roaring Kitty’s return to social media.

The resurgence of Roaring Kitty on social media platforms has reignited the meme stock frenzy, which initially gained traction with shares of GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) and has since extended its reach to other stocks with high short interest, including Virgin Galactic (SPCE).

Data from Benzinga Pro reveals that a significant 24.1% of available shares of Virgin Galactic are being sold short, making it a prime target for meme stock traders looking to capitalize on short squeezes and market volatility.

Despite the recent attention, Virgin Galactic received mixed assessments from analysts. TD Cowen adjusted its financial outlook for the company, lowering its stock price target to $2.00 from $2.50. However, the firm maintained a Buy rating on SPCE, expressing confidence in the company’s ability to achieve positive Free Cash Flow (FCF) by the second half of 2026.

On the other hand, analysts at Wells Fargo maintained a bearish outlook on Virgin Galactic, reiterating an Underweight rating on the shares while cutting the target to $0.75 from $1. The analysts emphasized that it’s “still a waiting game” for Virgin Galactic, highlighting uncertainties surrounding the Delta Class EIS and forecasting peak cash burn in the second half of this year.

Earlier this month, Virgin Galactic reported its first-quarter earnings, with an EPS of $-0.2500, surpassing analyst estimates by $0.04. Revenue for the quarter also slightly beat expectations, coming in at $1.99 million compared to the consensus estimate of $1.98 million.

Virgin Galactic (NYSE: SPCE) Stock Reaction

SPCE stock surged 22.12% to close at $1.27 on Tuesday. Its value increased by 25.74% this week. Trading activity has witnessed 78,735,016 (78.73 million) shares changing hands, well above the average daily volume of 16.68 million.