Why Virgin Galactic's Shares Jumped 5.1% on Monday
Shares of space tourism company Virgin Galactic (NYSE: SPCE) continued their volatility on Monday, jumping as much as 7.3% in trading before closing up 5.6%. Shares have been on a wild ride in just the last month, but at least investors are getting some clarity about the company's future.
Last week, during the earnings call, management outlined plans to end current space flight operations with the spacecraft called Unity to focus the company's attention on building the Delta spacecraft that will be able to carry six passengers (up from four today) and fly twice a week (up from once per month).
The new spacecraft is needed to get close to free cash flow positive, but it brings a lot of development risk because it's a new design. But at least there's clarity on the strategy, and management says they have enough cash to keep the company afloat until the new spacecraft is finished.
Source Fool.com
