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My Take: What's Next for Virgin Galactic Investors

By Jose Najarro - May 24, 2021 at 10:54AM

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Is the price of this space growth stock headed to the moon?

In today's video I look at Virgin Galactic (SPCE -0.57%) to share my overall thoughts on the success of the recent spaceflight mission and what long-term investors should keep an eye on. 

Three things Virgin Galactic investors should watch

  1. Virgin Galactic's most recent spaceflight mission was a tremendous visual success. But investors should be mindful that the engineering team still needs to review all the test data and conduct thorough inspections on the ships before giving the next mission the green light.
  2. Based on Virgin Galactic's most recent earnings slides for the first quarter of 2021, Virgin Galactic must conduct at least three more flight tests. 
  3. Virgin Galactic reported $617 million in cash and cash equivalents with a free cash flow burn of $50 million for the first quarter of 2021. At the moment the company has a strong balance sheet, but investors should keep an eye on the burn rate for future quarters.

Click the video below for my full thoughts. 

*Stock Prices used were the closed prices of May 21, 2021. The video was published on May 23, 2021. 


 

Jose Najarro owns shares of Virgin Galactic Holdings Inc. The Motley Fool owns shares of and recommends Virgin Galactic Holdings Inc. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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Virgin Galactic Holdings, Inc. Stock Quote
Virgin Galactic Holdings, Inc.
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