Virgin Galactic Sinks 32% to $5.08 as Settlement Revives Dilution Fears
Updated
Updated · 24/7 Wall St. · Jun 2
Virgin Galactic Sinks 32% to $5.08 as Settlement Revives Dilution Fears
3 articles · Updated · 24/7 Wall St. · Jun 2
Virgin Galactic fell 32% to about $5.08 after preliminary court approval of a shareholder derivative settlement revived concerns about cash burn and fresh share issuance.
Q1 results underscored that pressure: revenue was just $227,000, net loss reached $64.72 million, and free cash flow was negative $93.31 million, reinforcing the bear case around a pre-revenue business.
The selloff contrasted with gains elsewhere in space stocks, with AST SpaceMobile up 10% and Planet Labs up 9%, suggesting investors favored companies with operating momentum over speculative proxy trades.
AST reaffirmed $150 million to $200 million FY2026 revenue guidance and targets about 45 satellites in orbit by year-end, while Planet recently posted record $81.25 million revenue and $672.47 million in remaining performance obligations.
Even after Tuesday's drop, Virgin Galactic remains up 55% year to date, but the move highlighted how quickly a SpaceX IPO-linked retail trade can unwind when financing fears return.