By James Rogers
(The initial version of this story featured incorrect data for Virgin Galactic’s most recent quarterly results. This has now been corrected.)
Shares of Virgin Galactic Holdings Inc. fell 17.1% Monday after founder Sir Richard Branson ruled out further investment in the space-tourism company.
The stock is on pace for its biggest daily percentage decline since June 23, 2023, when it fell 18.4%. Virgin Galactic’s /zigman2/quotes/208333884/composite SPCE +3.15% stock is also on pace for its lowest close since Nov. 13, 2023, when it closed at $1.89, Dow Jones market data show.
Related: Virgin Galactic’s stock rockets as ‘Galactic 05’ mission reaches space
In an interview with the Financial Times Branson said that his business empire will not be putting more money into Virgin Galactic, which recently fleshed out its near-term growth strategy. “We don’t have the deepest pockets after COVID, and Virgin Galactic has got $1bn, or nearly. It should, I believe, have sufficient funds to do its job on its own,” he said.
Last month Virgin Galactic narrowed its quarterly loss and more than doubled its revenue when it reported its third-quarter results.
Related: For Virgin Galactic, faster revenue generation is coming — ‘just not anytime soon,’ says one analyst
Branson founded Virgin Galactic in 2004. The company’s stock has been pressured by the struggles of Branson’s satellite launch company Virgin Orbit Holdings Inc., which filed for bankruptcy protection earlier this year.
Last month Virgin Galactic was downgraded to underweight by Morgan Stanley. Of 12 analysts surveyed by FactSet, two have a buy rating, four have a hold rating, and six have an underweight or sell rating for Virgin Galactic.
Related: Virgin Galactic’s stock continues tumble following Morgan Stanley downgrade
Shares of Virgin Galactic have fallen 44.3% in 2023, compared with the S&P 500 index’s /zigman2/quotes/210599714/realtime SPX +1.02% gain of 18.9%.
Claudia Assis contributed.
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