The Case for Virgin Galactic's Stock Today
When Virgin Galactic (NYSE: SPCE) announced a proposed convertible senior notes offering on Thursday, it was seen as a resounding negative for the stock. Shares dropped 19% in trading, and there's worry that the company is burning cash at an unsustainable rate at this point.
The worries are valid, given consistent delays in launching a commercial spaceflight service. But with the official launch of those paid flights expected in late 2022 (at best), there could be good reason to raise money now. And since Virgin Galactic is raising money through the debt markets and not a stock sale, this won't be as dilutive for investors if this growth stock lives up to current timeline expectations.
Image source: Virgin Galactic.
Source Fool.com
