Core Insights - Virgin Galactic is facing significant challenges, including the retirement of its only operational spaceplane, Unity, and a potential two-year wait for a new Delta class spaceplane to be built and certified [5][9] - The company's stock has experienced a dramatic decline, with a 31% drop in value since the announcement of a 1-for-20 reverse share split [4][9] - To retain employees during this uncertain period, Virgin Galactic has been awarding restricted stock units (RSUs), indicating growing nervousness among staff [3][10][12] Company Actions - Virgin Galactic awarded 1,741 RSUs to a new non-executive employee, which will not fully vest for four years [3] - The company has issued RSUs to new hires five times in the past three months, suggesting a trend to incentivize employee retention [11] - The total RSU awards this year amount to 6,460 shares, valued at less than $66,000, indicating a low financial impact but a significant concern regarding employee morale [12] Stock Performance - Following the reverse share split, the stock initially rose to $14.80 but quickly resumed its downward trend [4] - As of Tuesday morning, the stock was down 13% from the previous close, reflecting investor skepticism about the company's future [9] - The overall sentiment among investors appears to be cautious, with many unsure about the long-term viability of the company [8]

Well, it seems I was too optimistic. Virgin Galactic is no longer a penny stock -- for now. Instead, Virgin Galactic's share price has plunged, and as of 11:50 a.m. ET Monday is down 17.2% at $11.34. This was probably unavoidable. As I explained last week, and also two months prior, Virgin Galactic is a company in decline. Its sole operational spaceplane, Unity, has been retired, and the company can't fly space tourists, or make revenue from space tourism flights, until it builds a new Delta spaceplane curr ...

Group 1 - Virgin Galactic is executing a 1-for-20 reverse stock split to comply with NYSE's minimum bid requirement, as its stock closed at 68.49 cents and had not been above $1 since May 21 [1][2] - The reverse split will reduce the number of shares outstanding by 95%, leading to an approximate 20-fold increase in share price, while the overall value of each investor's holdings will remain roughly the same [5] - The company expects to have two Delta ships operational by 2026, conducting about 750 space flights annually and generating approximately $450 million in revenue [3] Group 2 - SPCE stock has decreased by 54% over the last three months and 72% in 2024, despite a 410% increase in revenue last quarter, totaling $1.99 million [6] - The firm had $867 million in cash at the end of the first quarter, which positions it well for future operations [6] - Operating expenditures for the firm were $410 million over the 12 months ending in March, and if revenue targets are met while keeping spending flat, positive operating income is expected in 2026, potentially boosting SPCE stock [9]

Core Viewpoint - Virgin Galactic has officially exited the space tourism business for the foreseeable future, pausing operations to develop new spaceplanes while competitors like SpaceX and Blue Origin continue to advance in the market [1][14][15]. Competitors in the Wings - SpaceX's Starship is designed to carry up to 100 passengers at a cost as low as $10 million per launch, potentially offering ticket prices around $100,000, which is significantly lower than Virgin Galactic's current pricing [7][18]. - Blue Origin has resumed its space tourism flights, benefiting from Virgin Galactic's operational pause, allowing it to scale its business without competition from Virgin [15]. - SpaceX's Starship is an orbital-class vehicle capable of longer trips, contrasting with Virgin Galactic's suborbital flights that offer only a few minutes of weightlessness [19]. Market Dynamics - The cancellation of Yusaku Maezawa's space tourism trip with SpaceX has disappointed investors, as it would have provided insights into SpaceX's pricing strategy and its impact on the market [13][21]. - Virgin Galactic's decision to retire its "Unity" spaceplane and pause operations comes after its seventh commercial flight, indicating a strategic shift towards developing new models [14]. - The competitive landscape is shifting, with SpaceX and Blue Origin poised to capture market share while Virgin Galactic reassesses its strategy [16][17].

Virgin Galactic has proven its space tourism model. Now, it is laser focused on building a profitable business. It's pretty hard to argue Virgin Galactic (SPCE -6.23%) is anything but a story stock right now. And you either believe that story or you don't. But there are some pretty compelling elements in the narrative, as well as some really big problems. Are you a glass-half-full investor or a glass-half-empty investor? Here's what you need to think about as you make the buy, sell, or hold decision on Virg ...

Core Viewpoint - Virgin Galactic is entering a two-year hiatus after its final flight, during which it will prepare to launch its Delta-class spacecraft, marking a significant period for the company to prove its strategic direction [1][3]. Company Summary - Virgin Galactic recently completed its last flight before a two-year break, indicating a strategic pause in operations [3]. - The company plans to launch its Delta-class spacecraft following this hiatus, which is a critical development for its future [3]. Industry Summary - The aerospace industry, particularly in the space tourism sector, is closely watching Virgin Galactic's next steps as it transitions into a new phase of its business model [3].

CNBC's Investing in Space newsletter offers a view into the business of space exploration and privatization, delivered straight to your inbox. CNBC's Michael Sheetz reports and curates the latest news, investor updates and exclusive interviews on the most important companies reaching new heights. Sign up to receive future editions. VSS Unity was a good suborbital spaceship. But Virgin Galactic needs a great suborbital spaceship. As Unity heads into retirement after last weekend's launch, it's worth looking ...

It's June 13 today, and Virgin Galactic has gone ahead with its plan. Last night after close of trading, management confirmed it will reverse split its stock 1-for-20. As of 12:15 p.m. ET today, Virgin Galactic stock is down 13.7%. On the plus side, each of those 50 shares will be worth more. Virgin shares currently cost $0.74 apiece. The price Monday morning should be closer to $14.80. Virgin Galactic investors just got some bad news. They should expect more. The opposite of an ordinary stock split (where ...

Group 1 - Virgin Galactic announced a reverse stock split, consolidating every 20 shares of SPCE stock into one share, effective after market close on Friday [1][2] - The reverse stock split aims to increase the share price above the $1 minimum bid required to remain listed on the New York Stock Exchange, as the prior closing price was 85 cents [3] - Following the split, Virgin Galactic will retain the SPCE ticker but will change its CUSIP number to "92766K 403" [2] Group 2 - As of Thursday morning, SPCE stock has decreased by 14.3% [4]

About Oliver Haill About the publisher About this content Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, ...