Why Virgin Galactic Stock Is Down (Again) Today
Virgin Galactic Holdings (NYSE: SPCE) isn't getting the boost it likely hoped for from sending its founder into space. The shares lost more than 10% on Monday and were down again on Tuesday as investors digested what happened over the weekend and what the company has done since. As of 12:23 p.m. EDT, the stock was down 3%.
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.
The company followed the flight with news it would sell about $500 million worth of additional shares. Secondary offerings typically have a negative impact on stocks because they add to the total float, meaning every investor has a slightly smaller piece of the overall pie. But in this case the $500 million will have relatively little impact on a company with a $10 billion market capitalization, and given Virgin Galactic's need to invest for growth, bringing the extra capital in likely makes sense.
Source Fool.com
