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why is virgin galactic stock dropping

by Charlie Wilkinson Published 3 years ago Updated 2 years ago
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On Sunday, Virgin Galactic (SPCE) launched its first fully crewed mission, which took Richard Branson into space. The stock of SPCE dropped as the firm filed to sell its equity. The business said on Monday that it wants to sell up to $500 million in stock in a regulatory filing.

Shares of Virgin Galactic fell in trading on Thursday after the company announced plans to add up to $500 million in debt. The space tourism company's plans include raising up to $425 million from the sale of 2027 convertible senior notes through a private offering.Jan 13, 2022

Full Answer

Why did Virgin Galactic stock drop after its first space flight?

Dec 13, 2021 · Shares of space tourism pioneer Virgin Galactic ( SPCE 1.11% ) slipped lower for a third straight day on Monday, falling 3.2% as of 12:35 p.m. ET as investors seemed to conclude that what's good ...

Should you buy Virgin Galactic stock after its $500 million share sale?

Feb 17, 2022 · But two days later, Virgin Galactic is on track to post back-to-back stock market losses -- down 9% as of 1:50 p.m. ET -- as investors begin to realize: Virgin Galactic's next news announcement ...

Why did the stock of SPCE drop?

Feb 17, 2022 · Feb. 17, 2022, 02:38 PM. Two days ago, Virgin Galactic (NYSE: SPCE) went "to the moon" on news that it has reopened ticket sales for space tourism aboard its suborbital spaceplanes -- with flights ...

Did Virgin Galactic really make no earnings last year?

Dec 13, 2021 · Why Virgin Galactic Stock Keeps Dropping. Shares of space tourism pioneer Virgin Galactic (NYSE: SPCE) slipped lower for a third straight day on Monday, falling 3.2% as of 12:35 p.m. ET as ...

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Why are Virgin Galactic stocks going down?

In late 2021, shares of Richard Branson's company tumbled after Galactic said commercial operations would be delayed because of an issue related to the strength of the materials it uses in its spacecraft.Feb 22, 2022

Is Virgin Galactic stock a good investment?

Virgin Galactic is an extremely risky offering that's not for the faint of heart — and when it comes to a potentially game-changing opportunity like this, investors are always going to have to pay a premium, even without a concrete roadmap to future profitability.Jan 7, 2022

Does Virgin Galactic have a future?

Virgin Galactic had three more spaceflights scheduled: Unity 23, Unity 24 and Unity 25. Now, its previously announced timelines are undetermined until it completes refurbishment. The company said it aims to start commercial service, which the Unity 25 mission was expected to represent, in the fourth quarter of 2022.Oct 15, 2021

What is the future of Virgin Galactic?

Virgin Galactic Holdings Inc. expects to be flying paying passengers three times monthly in 2023, signaling it's on track to ramp up commercial flights after delays this year pushed back its space tourism debut timeline.Nov 8, 2021

Virgin Galactic had good news this week -- but earnings come out next week

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well.

What happened

Two days ago, Virgin Galactic ( NYSE:SPCE) went " to the moon " on news that it has reopened ticket sales for space tourism aboard its suborbital spaceplanes -- with flights to begin before the end of this year. But two days later, Virgin Galactic is on track to post back-to-back stock market losses -- down 9% as of 1:50 p.m.

So what

Next Tuesday, Feb. 22 after close of trading, Virgin Galactic is expected to report its fiscal fourth-quarter "earnings" for 2021.

Now what

If investors don't have earnings, or even new revenue to look forward to next week, what do they have to look forward to?

What happened

Two days ago, Virgin Galactic (NYSE: SPCE) went " to the moon " on news that it has reopened ticket sales for space tourism aboard its suborbital spaceplanes -- with flights to begin before the end of this year. But two days later, Virgin Galactic is on track to post back-to-back stock market losses -- down 9% as of 1:50 p.m.

So what

Next Tuesday, Feb. 22 after close of trading, Virgin Galactic is expected to report its fiscal fourth-quarter "earnings" for 2021.

Now what

If investors don't have earnings, or even new revenue to look forward to next week, what do they have to look forward to?

Why SPCE stock is dropping

SPCE stock's fall after the successful flight took some investors by surprise. However, it's worth noting that, ahead of the flight, the stock had run up and SPCE's valuation was astronomical. Maintaining that post-flight would have been unlikely.

Virgin Galactic announces more space flights in 2021, share sale

Also impacting SPCE stock was Branson’s anticlimactic "major announcement"—whereas markets were expecting something big, the company simply announced that it's planning two more test flights in 2021.

Virgin Galactic stock's price prediction

Analysts' median target price for Virgin Galactic stock is $43, 30 percent higher than its current price. The stock is 54 percent below analysts' highest target price of $51, but 40 percent higher than their lowest target of $20.

Will SPCE stock recover?

SPCE stock seems to have bottomed out and should recover soon. Its valuation looks much more reasonable for a pre-revenue company, and its market capitalization is just above $8 billion now. Furthermore, the $500 million stock offering isn't a major dilution, considering the company’s market cap.

Why did Virgin Galactic stock drop?

In early May, Virgin Galactic’s shares plummeted due to unexpected test delays, leaving investors in the dark about when testing would resume. Without unexpectedly, testing resumed, and shares soared. Then came the news of Branson’s test flight.

What is the name of the space mission that took Richard Branson to space?

Markets News Tech Trending Uncategorized. On Sunday, Virgin Galactic (SPCE) launched its first fully crewed mission, which took Richard Branson into space. The stock of SPCE dropped as the firm filed to sell its equity.

Is Virgin Galactic a sweepstakes company?

Virgin Galactic has also announced a partnership with Omaze, a sweepstakes firm, to give two tickets on “one of the first commercial Virgin Galactic spaceflights” early next year.

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