Why Shares of Virgin Galactic Are Falling Today
Shares of Virgin Galactic Holdings (NYSE: SPCE) fell 13% at the open Tuesday after the space tourism company released its second-quarter report Monday and announced a new share offering. Virgin is a pre-revenue company that trades more on hope than it does fundamentals, and this one-two punch for shareholders served as a reminder of the risks associated with this type of investment.
Virgin Galactic reported after the market closed Monday, and said it lost $0.30 per share in the quarter, $0.04 per share worse than the analysts' consensus expectation. The company had no revenue, but did record an increase in paid enrollments for its "One Small Step" program, a sales initiative that encourages potential space tourists to book future journeys.
Image source: Virgin Galactic.
Source Fool.com
