Shares of Virgin Galactic Holdings, Inc. (SPCE) stock were continuing the downtrend in today’s pre-market after dropping as much as 3.85% at the previous closing. SPCE stock price went down by 7.93% to drop at $20.68 a share at the time of this writing. Let’s see the reason behind this bearish sentiment.
Though there is no particular happening related to SPCE today however it seems that the SPCE has been facing the downtrend partially since the announcement of selling of shares by the founder of SPCE stock Richard Branson and partially due to strong rivals.
On April 14, 2021, Richard Branson sold $150.3 million worth of shares of SPCE at a per-share price ranging from $26.85 to $28.73.The proceeds resulted from this selling will be used in the leisure and travel business as it was greatly affected due to COVID-19. In early March, the chairman of Virgin GalacticChamath Palihapitiya also sold 6.2 million worth of shares.
Virgin stock is not running the space tourism flights due to which, it is losing its significant amount of revenue from that portion. On the other hand, its rivals are racing ahead and giving the SPCE stock a tough time nowadays. The recent 15th successful launch of the New Shepard suborbital space tourism rocket by Blue Origin and SpaceX contract with NASA related to new Starship spacecraft added more pain to the gloomy SPCE stock.
Here is what you need to know about Virgin Stock.
Virgin Galactic Holdings, Inc is operating as an aerospace company that is focused on the development of human spaceflight for researchers as well as private individuals in the United States. It is also involved in the manufacturing of air and space vehicles. It was founded in 2017 and its headquarters is in Las Cruces, New Mexico.
SPCE stock is passing through a difficult time as far as market sentiment is concerned. The deadly coronavirus pandemic has greatly hit the SPCE business as its effects were seen in the previously earning report by the Virgin stock. Hence it is obvious why the SPCE stock is not performing well these days. Virgin stock will announce its earnings report on May 4, 2021, which would further clarify the position of this stock in the future.