Where Will Virgin Galactic Be in 1 Year?
Shares of Virgin Galactic (NYSE: SPCE) have fallen more than 90% from their 2021 high-water mark. Clearly, enthusiasm for this space tourism company has waned in a big way even as it has proven that it can reliably fly people into space. The big problem for the company over the next year is that its finances are going to get increasingly weak.
Virgin Galactic made a very big announcement when it released third-quarter 2023 financial results. It is going from a monthly cadence of space flights down to just one per quarter. The reason is pretty simple: The company is trying to preserve cash. Some simple math tells you all you need to know. Virgin Galactic brought in revenue of $1.7 million in the third quarter of 2023, the first in which it was regularly flying to space, but spent $25.6 million on its spaceflight operations. In Q4, the math was a little better, with revenue of $2.8 million and costs of $24.3 million.
Image source: Virgin Galactic.
Source Fool.com
