Why Shares of Virgin Galactic Dived 40% in March
After soaring 113% through the first two months of the year, shares of Virgin Galactic Holdings (NYSE: SPCE) came back to earth in March as they plunged 40%, according to data from S&P Global Market Intelligence. While the general fear in the marketplace that helped to drive the S&P 500 down 12.5% motivated some investors to exit their positions in this high-risk stock, others were moved to act based on the fact that the company remained committed to compensating executives handsomely, eschewing any cost-cutting measures.
Oftentimes when the market exhibits significant volatility, many investors will retreat from speculative growth stocks like Virgin Galactic. March was no different. The company, which reported revenue of $3.8 million in 2019 and a net loss of $211 million, has yet to prove that providing space-flight tours to individuals with a high net worth can be a lucrative endeavor.
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Source Fool.com
