Virgin Galactic shares in chaos following Q2 2023 results

Virgin Galactic shares have experienced chaos a day after it presented its financial results
Virgin Galactic

Virgin Galactic’s shares opened slightly lower on August 2, 2023, compared to the previous day’s closing price. 

After closing at $4.14 on August 1, 2023, the company’s stock opened the day of trading at $4.12, tumbling to $3.88, before recovering shortly to more than $4 and proceeding to move between $3.9 and $4.  

Shortly after, the trade volume doubled, and, at the time of publication, the price had grown to more than $4.2.  

The rocky start marks a slight recovery from the lowest price of the year when stock closed at $3.15 on April 6, 2023, yet is far off Virgin Galactic’s highest share price of 2023, when it closed at $6.37 on February 17, 2023. 

Throughout the past few years, the company’s share price has spiraled rapidly, particularly after achieving its highest-ever price of $55.91 on June 21, 2021. 

The turbulent start to the day comes after Virgin Galactic announced its Q2 2023 results, where it reaffirmed that its Delta Class spaceships remain on track to enter commercial service in 2026.  The company completed two spaceflights in two months and its first commercial service, dubbed “Galactic 01” on June 29, 2023. 

“Scheduled for next week, the ‘Galactic 02’mission will deliver a transformational experience for our first private astronauts, and we expect to continue broadening access to space with monthly flights thereafter,” Michael Colglazier, the chief executive officer (CEO) of Virgin Galactic commented, adding that its financial position remains strong. Furthermore, Virgin Galactic’s focus remains on scaling its business and delivering the Delta Class spaceships in 2026. 

The company had $980 million in cash, cash equivalents, and marketable securities at the end of Q2 2023, finishing the period with a revenue of $1.8 million and a net loss of $134 million. Its total operating expenses were $141.4 million, the majority of which was comprised of research and development-related costs ($86.5 million). 

The “Galactic 02” mission, scheduled for August 10, 2023, was revealed in mid-July 2023, and includes a former Olympian, Italian Air Force officers, scientists from the National Research Center of Italy, as well as a mother-daughter duo who won their seats in a sweepstake that benefits a non-profit organization. 

Related Posts

AeroTime is on YouTube

Subscribe to the AeroTime Hub channel for exclusive video content.

Subscribe to AeroTime Hub