Chamath Palihapitiya (Credit: SCH)
by Douglas MessierManaging Editor
Virgin Galactic Chairman Chamath Palihapitiya was on a financial news network yesterday denying the stock was a bubble, a claim that hasn’t aged well in the short term.
With shares soaring to a high of $41.55 only a week ago, they are hovering at around $23 as I writing this story. The shares were offered at $12 when Virgin Galactic went public last Oct. 28 and rose sharply in recent weeks.
The shares slid after Virgin Galactic reported a larger than expected loss for the fourth quarter 2019 and hinted at delays in the start of commercial suborbital flights, which were to have started in June. Analysts have downgraded the stock based on the earnings report.
Virgin Galactic has spent more than $1 billion since it announced the SpaceShipTwo suborbital space tourism project in September 2004. It has never had a profitable quarter.
The spread of the coronavirus around the world has also sent stocks sliding sharply this week.
Palihapitiya claimed that demand is soaring for trips to space at a cost of hundreds of thousands of dollars apiece. He also said there is a dearth of other companies for investors to ...