Why Virgin Galactic's Shares Collapsed Today
Shares of space tourism company Virgin Galactic (NYSE: SPCE) fell as much as 7.8% in trading on Wednesday as the market's downturn hit high-volatility companies hard. There wasn't major news out about the company today, but that doesn't mean the falling stock price itself isn't a bad sign for the company's survival.
At 2:30 p.m. ET, shares were down 5.2%, and Virgin Galactic is near hitting an all-time low close today.
For some companies, a falling stock price is a problem in and of itself. That's the case for Virgin Galactic because the company is burning about $600 million per year in operations, generating only about $10 million to $15 million per year in revenue from the current spaceship, and has only $980 million in cash as of the end of the second quarter.
Source Fool.com
