Virgin Galactic shares fell 8% on Friday after the company postponed its space test scheduled for this weekend

“We have pushed ahead with our pre-flight preparations and during this process we decided to allow more time for technical reviews,” the space tourism company said in a statement. “We are working to identify the next flight opportunity”

Virgin Galactic’s shares are up more than 450% since going public in October 2019 The market valuation is now over 12 billion despite a lack of substantial income and steady quarterly losses USD The stock closed at $ 5453 a share on Friday

The bull case for Virgin Galactic investors depends on the company making progress in completing its development program and commencing commercial flights, which has resulted in updates and delays that significantly impact the daily volatility of the stock

The stock rose 13% the day before after the Federal Aviation Administration said the space test was scheduled to start on Saturday, but the company confirmed Thursday that it was “making good progress on our flight preparations,” added added that the experiment has not yet been completed

A technical review can be done for a variety of reasons, including hardware review and software review, meaning a delay could be anywhere from days to weeks depending on the problem

The now belated space flight test is a replay of the attempt that was canceled during a scheduled launch in December. Virgin Galactic spent two months analyzing the cause of the cancellation and conducting ground tests, with the flight test set to “complete the one.” Remedial actions were reviewed “”

While there will only be two pilots on board, the flight is expected to be the first of three as the company plans to complete development of its spacecraft system

Earlier this week, UBS cut its rating on the stock to neutral, citing Virgin’s earnings at the start of the year, UBS said in a notice to clients that “we are aware of a rating that appears full” despite upcoming test flights attractive catalyst chains form “

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World News – CA – Virgin Galactic shares fall after company delayed space test this weekend

Source: https://www.cnbc.com/2021/02/12/virgin-galactic-spce-shares-drop-as-company-delays-upcoming-spaceflight-test.html