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Virgin Galactic’s Unity spacecraft is getting ready for flight.
Galactic Virgo
Virgin Galactic shares fell after the company delayed its next space flight test, which was scheduled for this weekend.
“We have made progress in our pre-flight preparations and during this process we have decided to allow more time for technical checks. We are working to identify the next flight opportunity,” the company said in a statement.
Virgin Galactic shares have climbed more than 450% since the company went public in October 2019, with its market valuation now reaching almost $ 14 billion – despite the company’s lack of significant revenue to date. and regular quarterly losses. Investor speculative trading to date is dependent on Virgin Galactic’s progress in completing its development program and launching commercial flights, with updates and delays having a pronounced effect on daily stock swings .
Shares fell 11% in pre-market trading on Friday from its previous close of $ 59.41.
The stock had jumped 13% the day before, after an FAA advisory said the space flight test was on track to launch on Saturday. The company confirmed Thursday that it was “making good progress in our flight preparations”, but noted at the time that the attempted flight was still awaiting technical preparation.
A technical check can be performed for a wide variety of reasons, from inspecting the hardware to verifying the software, so the lead time can range from a few days to several weeks depending on the severity of the problem.
The upcoming space flight test is a redesign of the December attempt that the company canceled mid-launch. Virgin Galactic spent two months analyzing the cause of the abandonment and performing ground tests, with the test flight set to verify “the repair work that has been completed.”
With only two pilots on board, the flight is expected to be the first in a series of three as the company seeks to complete development of its spacecraft system.
Earlier this week, UBS downgraded its rating on the stock to neutral, citing the stock jump to start the year. UBS said in a note to clients that “we are aware of an assessment that appears to be complete”, even if the upcoming test flights create an attractive “catalyst chain”.
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