XpresSpa (XSPA) Stock Will Likely Continue Upward

XpresSpa XSPA Stock News

XpresSpa Group Inc (NASDAQ: XSPA) has been a hot stock to watch as of late. Following up on strong gains today, the stock has far more than doubled in the last month. So, what is it about this airport spa business that has investors so excited? Well, it’s got nothing to do with spa service.

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XSPA Stock Benefits From Agility Of Management

As the coronavirus pandemic started to spread, many companies just rolled over and put their head in the sand. Unfortunately, the virus has lead to widespread economic pain, as was expected. However, there are a few companies that have completely shifted focus on a temporary level. These companies, with incredibly agile management teams, are seeing great benefits from their moves, and XpresSpa is one of them.

With the COVID-19 pandemic in mind, in most states across the United States, many businesses have been shut down. Anything that’s not considered to be an essential business simply cannot be open at the moment in an effort to stop the spread of the virus. Unfortunately, spa treatments aren’t what we see as essential business.

However, XSPA decided that it would not let this hold them down. Early on, the company started putting feelers out in order to get access to COVID-19 testing kits. The company started having conversations with the airports in which it had real estate, with regulatory authorities, and with biotechnology executives.

These talks ultimately led to the company’s plan to temporarily change the shape of its real estate in airports across the United States. Instead of using this real estate to offer spa services, the company plans on using these spaces to offer COVID-19 testing services, and that my friends is a genious move!

The truth of the matter is that the spread of COVID-19 seems to be plateauing. There are even a few states that are becoming more relaxed on social distancing restrictions. In Florida, consumers are walking on beaches. In Georgia, some are eating at dining establishments. And the same is seen in a few other states.

However, even with social distancing regulations relaxing, they are not, and will not be, completely gone. This isn’t likely to happen until we have vast testing capacity and mass availability of a vaccine. Ultimately, we’re about 18 months off on that.

So, there is a strong opportunity in this timeframe for a company like XSPA to step up and use its real estate to expand testing capacity, and see incredibly strong revenue growth as a result. Moreover, with the company’s real estate being in airports, it couldn’t be in a more perfect situation.

So, Why Will XSPA Continue To Fly?

It’s simple, XpresSpa’s agile management saw a hurdle. Instead of sitting down and quitting the race, the company sprung into action and created a temporary plan to expand revenues while the world waits to get back to normal. It doesn’t get better than that. Stocks like XSPA are exactly the types of opportunities that investors should be looking at right now.

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