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Virgin Galactic (SPCE) Shares Jumped 13.40% but Are 8% Down Now As FAA Confirms Next Spaceflight Test Date

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by Benjamin Godfrey · 3 min read
Virgin Galactic (SPCE) Shares Jumped 13.40% but Are 8% Down Now As FAA Confirms Next Spaceflight Test Date
Photo: Virgin Galactic / Twitter

The entire business model of Virgin Galactic is ambitious, as the company is working hard to make space travels a reality, not just for astronauts, but also for every global citizen.

The Federal Aviation Administration (FAA) has issued a notice that confirms the next spaceflight test date for Virgin Galactic Holdings Inc (NYSE: SPCE) which influenced the price of the company’s shares. Per the FAA, the next spaceflight test for the Mojave, California-based firm will be taking place as early as Saturday.

Based on this, the FAA said the airspace around Virgin Galactic’s base of operations at Spaceport America in New Mexico would be restricted for space operations from Saturday at 9 a.m. ET through Sunday at 6 p.m. ET.

The Spaceflight test is the first attempt by the company following its last aborted attempt back in December 2020. Per earlier reports, the company had to abort the flight as a result of a problem with the engine ignition. The failed test was supposed to be the company’s one of three flight tests before completing its spacecraft system.

Per the statement from the firm as reported by CNBC, citing a Virgin Galactic spokesperson, the company is “making good progress through our flight preparations,” noting that the flight attempt is pending weather and technical readiness.

The spaceflight test scheduled for Saturday will attempt to achieve all of the targets the firm aims to achieve in the December failed scenario. The firm has spent the last couple of weeks identifying and analyzing the cause of the previous abort and carrying out ground testing, with the test flight set to check “the remedial work that has been completed.”

The test will aim to re-evaluate the initial objectives “including evaluating elements of the customer cabin, testing the live stream capability from the spaceship to the ground, and assessing the upgraded horizontal stabilizers and flight controls during the boost phase of the flight,” the company said.

The update has sent the shares of Virgin Galactic up by 13.40% to $59.41, pushing the market capitalization to $13.92 billion. However, today the stock is 7.68% down in the pre-market.

Virgin Galactic on Verge of Making History, SPCE Shares May Move Higher

The entire business model of Virgin Galactic is ambitious, as the company is working hard to make space travels a reality, not just for astronauts, but also for every global citizen. The firm has done a lot of developmental work to make this dream come true, with these scheduled test flights the last hurdle to cross.

With an experienced management in place to help commercialize the venture, the company has earned a lot of goodwill from investors, with the shares doubling in 2021 alone. However, Swiss multinational investment bank and financial services company, UBS Group AG (SWX: UBSG) is cautious of the firm’s meteoric growth, revising its rating to neutral. UBS said in a note to clients that “we’re mindful of valuation that appears full,” even though upcoming test flights create an appealing “catalyst chain.”

All eyes are on Virgin Galactic’s next test flight, the success of which will stir new dawn for the company.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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