So much for Virgin Galactic (SPCE).
Weeks after blasting off to a high of $55.50, the sock plummeted to $16.61. Worse, it could fall even more after breaking below support around $15.
Not helping, insiders like Chairman Chamath Pailhapitiya, Richard Branson, and Cathie Wood’s new space-themed ETF have been selling hand over fist. In fact, ARK Invest Space ETF has now sold almost all of its stock in SPCE. Ark Invest’s Autonomous Technology and Robotics fund also cut its position in SPCE from over two million shares to less than 7,880.
Worse, Jeff Bezos’ Blue Origin announced plans to launch the first crewed flight of its rocket on July 20. That could remove SPCE’s first-mover advantage, says CNBC.
Plus, the company just reported an adjusted EBITDA loss of $55.9 million, down slightly from a loss of $59.5 million. It also produced no revenue in the quarter, as it did in the prior quarter.
While there’s still uncertainty over its next test flight, Mike Moses, Virgin Galactic’s president of space missions and safety said, “We will report back to the market next week with an update on schedule implications to our next flight,” as quoted by CNBC.