Shares of Virgin Galactic Holdings Inc.
SPCE,
fell 14.1% in premarket trades Monday after founder Sir Richard Branson ruled out further investment in the space-tourism company. In an interview with the Financial Times Branson said that his business empire will not be putting more money into Virgin Galactic, which recently fleshed out its near-term growth strategy. “We don’t have the deepest pockets after Covid, and Virgin Galactic has got $1bn, or nearly. It should, I believe, have sufficient funds to do its job on its own,” he said. Last month Virgin Galactic reported a deeper-than-expected first-quarter loss and revenue that missed analysts’ estimates. Branson founded Virgin Galactic in 2004. The company’s stock has been pressured by the struggles of Branson’s satellite launch company Virgin Orbit Holdings Inc., which filed for bankruptcy protection earlier this year. Shares of Virgin Galactic have fallen 32.8% in 2023, compared with the S&P 500 index’s
SPX,
gain of 19.7%.
