Virgin Galactic (NYSE: SPCE) stock is down nearly 9% today after reporting that the launch of its commercial spaceflight faces further delays. It seems that even positive first-quarter results cannot offset this pain. Source: Christopher Penler / Shutterstock.com
What's happening to Virgin Galactic stock?
Virgin Galactic's launch of Richard Branson into space was supposed to be a big catalyst for the stock, but it now appears most of the run-up happened ahead of liftoff.
What happened to Virgin Galactic on Friday?
Virgin Galactic traded down as much as 7% on Friday morning before recovering somewhat, but as of lunchtime it was still in the red on a day when the overall markets are in rally mode. All eyes will be on the Virgin Galactic Spaceport America near Truth or Consequences, New Mexico, on Sunday when Branson will make his long-awaited trip into space.
Why did Richard Branson lose all of his money on Virgin Galactic?
It was just a month ago when space tourism company Virgin Galactic Holdings ( NYSE:SPCE) was celebrating a successful flight to the edge of space with company founder Sir Richard Branson on board. The company's stock ran up ahead of that flight, but much of those gains were lost this week, and part of it is due to activity by Branson himself.
Is Virgin Galactic ready to start regular service?
No matter how the test goes, Virgin Galactic still has a series of boxes to check before it can start regular service. And it remains a company that, despite its $12 billion market capitalization, has an uncertain total addressable market and deep-pocketed competition.
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Will Virgin Galactic keep going down?
Virgin Galactic Stock Tumbles After Commercial Flights Delayed Until End of 2022 | Barron's.
Will Virgin Galactic recover?
Virgin Galactic said earlier that the ramp-up of Delta class spacecraft will determine when the company becomes cash flow positive. But Virgin Galactic doesn't see the Delta class spacecraft starting research flights until 2025 and won't enter commercial service until 2026.
Is Virgin Galactic a good long term investment?
High risk and high potential If customers actually begin paying nearly half a million dollars for space flights, and Virgin Galactic can collect around $2 million in revenue each time it takes off, this could be a great growth stock to own for the long term.
Is Virgin Galactic a good buy?
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.
Does Virgin Galactic have a future?
Virgin Galactic stock plunges after company delays spaceflight tests to 2022. The space tourism company is beginning a refurbishment process on its vehicles that is expected to take eight to 10 months, with completion anticipated between June and August.
What is the future of Virgin Galactic stock?
Stock Price Forecast The 12 analysts offering 12-month price forecasts for Virgin Galactic Holdings Inc have a median target of 9.20, with a high estimate of 16.00 and a low estimate of 5.00. The median estimate represents a +40.03% increase from the last price of 6.57.
What is happening with Virgin Galactic?
Virgin Galactic pushes 1st planned commercial passenger flight to 2023. Aspiring space tourists will need to wait a little longer before soaring into suborbital space with Virgin Galactic.
Can you buy SpaceX stock?
Because SpaceX is not a publicly-listed company, you cannot buy shares of the company or invest in SpaceX directly. The only way to invest in SpaceX is to invest indirectly. That means: Either invest in businesses that SpaceX works with or investing in companies that hold an interest in SpaceX.
Will Virgin Galactic be profitable?
It hopes to have five spaceships and operate 270 flights a year by its fourth year of commercial operations, which is projected to take in $590 million in revenue, while gross profit will stabilize at approximately 70%.
Will spce stock go up?
Virgin Galactic Holdings Inc (NYSE:SPCE) The 12 analysts offering 12-month price forecasts for Virgin Galactic Holdings Inc have a median target of 10.00, with a high estimate of 16.00 and a low estimate of 5.00. The median estimate represents a +70.94% increase from the last price of 5.85.
Will Virgin stock rise?
Virgin Galactic Stock Is Climbing Because It Will Fly People to Space This Year. Shares of Virgin Galactic are on the rise after the space tourism pioneer said it was still on track to start taking people to the edge of space later this year.
How high Virgin Galactic will fly?
The company's SpaceShipTwo Unity craft is designed to take off on a conventional runway while attached to the underbelly of a carrier ship known as WhiteKnightTwo. The vehicles fly to 50,000 feet, where Unity is released and its engine ignites to rocket to the edge of space.
Investors are taking some profits ahead of Sunday's big event
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
Key Points
Richard Branson is scheduled to fly into space on Sunday, an important milestone for Virgin Galactic.
What happened
On the last trading day before Richard Branson's planned trip into space, shareholders of Virgin Galactic Holdings ( NYSE:SPCE) are taking a "risk off" approach to the stock.
So what
All eyes will be on the Virgin Galactic Spaceport America near Truth or Consequences, New Mexico, on Sunday when Branson will make his long-awaited trip into space. It's an important milestone for the nascent space tourism company, and a great marketing opportunity for the brand.
Now what
It's wrong to call Sunday's flight a make-or-break moment for the company, but it is certainly important. A successful flight finishing with a smiling Branson could do wonders to win over skeptics. Any issues -- even a benign technical glitch that causes a postponement -- would be a very public setback.
What spacecraft did Branson launch?
On Sunday, Richard Branson blasted into space aboard the Virgin Galactic Unity spacecraft, officially marking the launch of the space tourism market. Virgin Galactic shares had rocketed higher in anticipation, but the reaction since has been muted.
Is Virgin Galactic a catalyst?
Virgin Galactic's launch of Richard Branson into space was supposed to be a big catalyst for the stock, but it now appears most of the run-up happened ahead of liftoff. Given the risks to the business, investors are wise taking a cautious approach as the company completes testing in the months to come.
Analysts say last week's spike higher could have been an overreaction
Lou has followed the markets for more than two decades, developing extensive contacts including industry leaders, consultants, regulators, and labor representatives. He spends a lot of time these days focused on the industrials and financials.
What happened
Shares of Virgin Galactic Holdings ( NYSE:SPCE) ran into turbulence this week, down 22% from last Friday as of midday Thursday. The stock rocketed higher last week after winning a key regulatory approval, but some on Wall Street seem to believe that climb was too high, too fast.
So what
Virgin Galactic shares have a history of turbulence, and this past week has been no exception. The company has an ambitious plan to launch tourists into space but has fallen behind on its timetable and is currently operating with little to no revenue.
Now what
Last week's jump appears to be a rare case of investors buying the rumors and buying the news. The stock doubled in value between mid-May and mid-June, ahead of the FAA decision, on evidence the testing was proceeding as scheduled and regulatory approval would follow.
