Yesterday, XpresSpa Group Inc (NASDAQ: XSPA) had a great day, gaining more than 9%. Today, the stock is trading up early on as well, with gains of more than 6% in the premarket. Nonetheless, the gains that we’re seeing at the moment are nothing compared to what we’re likely to see when news breaks.
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The Quick Rundown On XSPA Stock
XpresSpa has been an incredibly hot topic as of late, and for good reason. Before the COVID-19 pandemic, the company’s core focus was spa facilities located in airports. These facilities allowed customers to enjoy spa services while awaiting their flights, and it did pretty well.
However, spa services are far from essential. When the COVID-19 pandemic began, the United States economic shutdown started to roll out, XSPA decided it wasn’t going to sit and wait to reopen. Instead, it would get involved in the fight against the pandemic.
To do so, the company announced that it would be temporarilly restructuring its real estate. Instead of offering spa services, the company would work to turn these pieces of airport real estate into COVID-19 testing centers.
With the news in mind, the stock has seen dramatic gains. In fact, before the announcement, the stock traded as low as $0.19 per share. However, today, the stock is trading at over $0.50 per share.
The reason for the excitement is simple. XSPA turning its airport real estate into testing ceters could become a very strong revenue generator. Think about it:
Around the globe, we are looking for ways to stop the spread of the novel coronavirus. Of course, testing is a big part of this. However, when consumers travel, there’s no testing between destinations. This is where the company’s idea can make a big impact.
If all goes well, the company’s testing centers could become cornerstones in the fight against the pandemic. Think about it, testing consumers before they got on airplanes in close proximity to other flyers can stop the spread of COVID-19 on the airplane. On top of that, those who test positive would likely be stopped from getting on the plane, stopping COVID-19 from spreading state to state or country to country.
The bottom line is that the implications of XSPA turning its airport spas into testing centers could be incredible, both from a health and safety standpoint and a revenue growth standpoint.
Big Gains Ahead When News Is Released
At the moment, investors are awaiting news from XpresSpa. We know that the company plans on converting its real estate into testing centers. However, before doing so, the company as to get approvals from the airports in which it hold real estate as well as regulatory approvals.
We know that the comapny is currently in conversations to get these approvals, as well as partner with test suppliers and other key parties for this to come to fruition. As these talks continue to mature, we’re getting closer and closer to news.
When XSPA does release news with regard to its plans, the stock is likely to fly. Ultimately, with the goal to shift spa centers into testing centers, there are tons of people watching the stock. As such, any good news could lead to a frenzy of buying, sending the stock through the roof.
So, if you’re not watching XSPA stock closely at the moment, now is the time to start!
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