Virgin Galactic Shares Face Mounting Pressure as Financial Challenges Deepen

Virgin Galactic’s stock is experiencing renewed downward pressure, reversing its brief rally from mid-September. The shares opened today’s trading session at approximately $3.36, marking a decline from yesterday’s closing price of $3.42. The substantial 14% single-day surge recorded during last month’s rally appears to have completely evaporated.

The company’s most recent quarterly report, released in August, reveals significant financial challenges. Virgin Galactic continues to operate with substantial cash burn, with its cash reserves diminishing to $508 million. The situation appears particularly dire when examining the second quarter free cash flow, which registered a concerning negative $114 million.

Revenue performance has deteriorated dramatically, collapsing from $4.2 million to just $0.4 million year-over-year—representing a staggering 90% decline.

Key financial figures include:Read more...