Why Virgin Galactic Stock Keeps Going Up
Shares of space tourism pioneer Virgin Galactic (NYSE: SPCE) stock closed 12.3% higher on Friday. In an announcement made Thursday after the close of trading, Virgin Galactic revealed that its president of Aerospace Systems, Swami Iyer, has left the company for undisclosed reasons. Iyer "will continue to serve as an advisor to" Virgin Galactic CEO Michael Colglazier through March 3.
Although Iyer is leaving, Virgin Galactic noted that under its "updated leadership structure," Mike Moses remains president of Spaceline Missions and Safety, Mike Moore remains executive vice president in charge of Spaceline Technical Operations, and Steve Justice remains senior vice president for Spaceline Programs and Engineering.
Virgin Galactic also confirmed that upgrades of its mothership, VMS Eve, have been completed and that test flights are about to begin. The company reiterated its plans to begin commercial operations as well (i.e., flying space tourists to the edge of space). If and when this happens, Virgin Galactic should begin recording revenue at the rate of $1.5 million or more per spaceflight -- versus $1.6 million recorded for all of its last 12 months.
Source Fool.com
