What happened with Virgin galactic?
Virgin galactic started making buzz when the company first announced that they would be taking ‘founder’ and billionaire Richard Branson into the edge of space. This would propel a new era of space tourism and ultimately a faster way to get from one place, to another.
During the GameStop crazy, redditors and retail investors flooded the market, putting money in different companies hoping for a huge turnout. Virgin Galactic's ‘SPCE’ stock was one of those stocks. The company gained huge upward momentum and had a 52 week high of $62.80.
When Jeff Bezos and Richard Brandon announced that they would be venturing into space last summer, the company saw another price rise as people anticipated the launch. On the day of the launch, the stock had a price of $55 and projections were anticipating the company’s success.
When the day came, all eyes were on Mr. Branson and his screw when they took the first venture into space on the virgin galactic. Mr. Branson was the first billionaire to reach space with his own space company and was in space for an entire 15 minutes, experiencing zero gravity and a look into deep space. The virgin Galactic's landing was a success and Mr. Brandon accomplished what other companies couldn't.
Now, what’s happening now?
Well, after the success of Virgin Galactic’s first space flight, the company’s stock plummeted as it announced that they would be selling $500 million worth of its shares. Projections anticipated that the stock will start to rebound at the $20 mark but it was making a upward climb after it hit $23.
Last week, the FAA opened a investigation into the companies shaky landing and barred the company from conducting any space flights until the investigation concluded. Within hours of the news releasing, the company’s stock plummetted 13 percent, reversing the day’s initial gains.
What this means for the company?
Like all flight companies, they will have to battle the FAA to make sure their planes are following regulation and safety guidelines for both the passengers and the people below. Due to the plane’s detour it had to make during the space flight, the FAA was forced to investigate the causes before allowing the company to perform any more test flights.
If the investigation is unfounded and there is nothing wrong then the plane, then the company will proceed with its test flights in preparation for the commercial launch later next year. If the opposite happens then this will set the company back years before it will be able to test fly its plane again.
Should you invest in SPCE?
Until the investigation is concluded, it will be of your best interest to withhold funding the company. The stock is expected to rebound eventually so keep watching the news and be sure to invest wisely.