Why Virgin Galactic Lost Altitude in August
Virgin Galactic Holdings (NYSE: SPCE) is finally airborne, but investors got a fresh reminder of the hurdles that still remain before the space tourism company is profitable. The net result was disappointment, with shares of Virgin Galactic losing 41.1% of their value in August, according to data provided by S&P Global Market Intelligence.
Virgin Galactic achieved a major milestone in August when it completed its first private astronaut flight and gave the green light for another commercial mission in September. The flight occurred years later than what the company originally planned but provided a strong proof of concept after a series of engineering- and pandemic-related delays.
A monthly launch cadence will help grow revenue, but Virgin Galactic is still a long way from achieving profitability. A week before the successful commercial flight, the company reported a wider-than-expected quarterly loss on just $2 million in revenue.
Source Fool.com
