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Stock impact report

Virgin Galactic: Branson's Decision Leaves Shareholders Uncertain [Seeking Alpha]

Virgin Galactic Holdings, Inc. (SPCE) 
Company Research Source: Seeking Alpha
The space industry has high barriers to entry, but competition from Blue Origin and SpaceX may make Virgin Galactic less attractive to customers. Virgin Galactic plans to be cash-flow positive by 2026 with the launch of its Delta ships, but revenue projections may be too optimistic. Thesis The news that Richard Branson does not plan to invest further in Virgin Galactic has spread like wildfire and unsettled shareholders. As a result, the stock fell 17% in one day. His reasoning is that he thinks the $1.1 billion in cash Virgin Galactic ( NYSE: SPCE ) has is enough to fund it until the company is FCF positive. The timing of Branson's statement is not the best for existing shareholders, as the stock is down more than 50% since I last wrote about the stock earlier this year and gave it a Sell rating. In my opinion, the liquidity reserve may not be sufficient, and I also think that the Delta flights may start later than planned. And even if they start in 2026, it may not be enoug Show less Read more
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