Last week was a great week for space-tourism pioneer Virgin Galactic (NYSE:SPCE) — if a bit less great for Virgin Galactic stock. On July 11, Virgin Galactic founder Sir Richard Branson successfully flew to space and back aboard the VSS Unity spaceplane.
But even before Branson had landed, Virgin Galactic’s stock was crashing back to Earth.
In fact, over the five days since Branson completed his historic flight, Virgin Galactic shares have shed more than 36% of their share price. Today, the stock made a half-hearted attempt to revive — rising nearly 5% in early trading — but quickly gave up the attempt.
This makes Virgin Galactic stock vulnerable to declines whenever investor interest wanes. And right now, it’s waning because, well, Sir Richard has already flown his flight. He came back safe and sound, but now it’s time to start paying attention to the next billionaire lining up to travel to space.
Also because Big Tech head of Amazon Jeff Bezos plans to make his space expedition on July 20 investors are now unsure wether Branson’s Virgin Galactic will bring them the most profit. After all who can compete with Bezos “The Richest man in the world” the truth is space is unpredictable and doesn’t revolve around someone’s net worth. Only time, good engineering Good science and a good flight crew will make space travel on a consumer level efficient and safe enough for investors.