XpresSpa (XSPA) Stock: Here’s Why It’s Climbing!

XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) has been a hot topic of discussion in the market as of late. The company, known for spas in airports, is shifting focus in what could be a very profitable way. Here’s why investors are so excited about the stock:

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XSPA Gains On The Fight Against COVID-19

Not too long ago, XpresSpa said that it would be transitioning some of its space inside of airports to turn them into COVID-19 testing centers. This was a huge announcement for multiple reasons:

  • Stay At Home Orders – First and foremost, stay at home orders have swept the country. Unfortunately for XpresSpa, these orders are closing down spas as they are not essential businesses. However, by transitioning its airport real estate into COVID-19 testing facilities, the company is able to keep its locations open and generating revenue.
  • Testing Demand In Airports Will Be High – As the United States starts having discussions about reopening its economy, testing has been the largest topic within this discussion. After all, without testing, reopening is going to be very difficult. With that said, as consumers travel, it is going to be important to test them for COVID-19 when they get home. So, demand for these tests in airports will be very high, creating yet another reason to be excited about XSPA.
  • Revenue Growth On The Horizon – Finally, the fact that the company is shifting to a COVID-19 testing model is great as it will generate incredible revenues in the face of the pandemic. As mentioned in both bullet points above, demand for coronavirus testing is high. With XSPA being able to offer this testing, there’s a strong chance that we will see substantial revenue growth.

Moreover, testing is likely to start soon within these locations. In fact, in a recent press release announcing the appointment of Dr. Lewis Lipsey as the Chief Medical Director of XpresTest, the company reminded investors of the hard work that it is doing to move forward with the transition.

In fact, the company said that it has been in advanced discussions with healthcare partners and US airports to bring this plan to life. In a statement, Doug Stzman, CEO at XSPA, had the following to offer:

We are thrilled to be adding Doctor Lipsey to our executive management team. He has over 30 years of experience as a medical doctor and is uniquely qualified to oversee Novel Coronavirus (COVID-19) Screening and Testing at U.S. Airports. He will be a valued asset and advisor to the Company during these unprecedented times.

We continue to make progress with our public and private relationships to make COVID-19 screening and testing in U.S. airports a reality. We are targeting to begin pilot testing at JFK airport for all airline employees, contractors and workers, concessionaires and their employees, TSA agents, and U.S. Customs and Border Protection agents. We believe XpresSpa, through its XpresTest subsidiary, has a significant role to play in the fight against COVID-19 within the travel sector given our airport relationships, infrastructure, workforce with TSA clearance and strong desire to keep travelers and those who work in the airline industries safe.

The Bottom Line

The bottom line here is very simple. XpresSpa is making strong moves in the face of the pandemic. While many companies are simply rolling over and waiting for the pandemic to be over, XSPA is working to fight the pandemic and generate revenue for investors in the process. As such, this is a stock that you should be watching very closely.

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