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      SPCE Stock: Virgin Galactic Riddled With Execution Risks

      By Wasim Omar

      Published on

      January 13, 2023

      10:26 AM UTC

      Last Updated on

      May 18, 2023

      9:58 AM UTC

      SPCE Stock: Virgin Galactic Riddled With Execution Risks

      Virgin Galactic Holdings Inc. (NYSE: SPCE) is making the news lately after experiencing a wide dip in share price, compared to the wider market. Earlier this year, its sister company saw its UK rocket launch failing. Although this news does not hold direct consequences for Virgin Galactic, market participants are beginning to question whether or not it shares execution risks.

      What is Virgin Galactic Stock?

      SPCE stock belongs to the Virgin Galactic company, which is dedicated to the development, production, and operation of spacecraft and associated technologies for commercial human spaceflight and research payloads.

      Essentially, they are working on making space travel accessible to private individuals and organizations, as well as government agencies.

      The company is based in Las Cruces, New Mexico, and was established in 2017. Virgin Galactic is involved in testing their spaceflight vehicles, maintaining them after flights, and providing a range of services related to human spaceflight.

      Anyone purchasing the Virgin Galactic stock would be buying into a company with a focus on creating a safe, reliable, and efficient spaceflight system that can be used for a variety of purposes, including research, exploration, and tourism.

      Virgin Galactic’s (SPCE) Failed Rocket Launch

      Earlier this year, news reports came of Virgin Galactic’s (SPCE) sister company, Virgin Orbital Holdings (NASDAQ: VORB) seeing its UK rocket fail in the launch, which brought in a 15% price plunge.

      Although SPCE remained immune to this news, execution risks have increasingly been growing, as both companies belong to a single parent entity.

      The Daily Mail recently published an article emphasizing the high degree of launch failures that are inherent to Virgin Galactic and Virgin Orbital, in comparison to its peers.

      Throughout the year, these concerns surrounding SPCE stock have continued to mount up, especially after the two-time deferral of its planned commercial space flight project. This has caused a strain on SPCE stock price.

      Let Not The Setbacks Blind You From The Strengths

      Even though the market is currently largely skeptical about the execution capabilities of Virgin Galactic, it is important to keep in mind the core strengths inherent to SPCE stock.

      The first of these is its rock-solid balance sheet, with a liquidity of $1.7 billion. This delivers sufficient leeway to push on the development of its ambitious projects.

      Secondly, the nature of its operations allows it to bypass the macroeconomic headwinds dominating the markets, as the demand for commercial spaceflight remains secure, regardless of inflation levels.

      Above all, Virgin Galactic continues to prove it has the flexibility to turn away from its vertical integration approach. This is crucial to consider regarding the potential of Virgin Galactic share price.

      Frequently Asked Questions

      Is SPCE Stock a Good Stock to Buy, Hold or Sell?

      SPCE stock is currently a hold, as it is going through a rough patch, with the market uncertain about its prospects. These fears have been amplified by its rocket launch failure earlier this year.

      Is it Worth Buying SPCE Stock?

      It is currently not worth buying SPCE stock owing to uncertainties it faces about its future prospects. It is better off being held, rather than bought or sold.

      What is SPCE Stock Price?

      SPCE stock price is currently at $3.46. This price is useful to consider for anyone looking to initiate, amend, or drop a position on SPCE stock.

      What is the Virgin Galactic Share Price?

      The Virgin Galactic share price is currently hovering close to $3.46. Its price is experiencing little fluctuation due to the low trade volume surrounding SPCE.

      Conclusion

      Virgin Galactic is currently facing the scrutiny of the market at the moment, and concerns are being raised about its ability to execute. However, the company continues to boast several strengths that deliver it a large competitive edge.

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