Estimated reading time: 3 minutes
Why I would Not Invest
A couple reasons why I would not invest into Virgin Galactic stocks. The first reason would be because a lot of people including myself lost a lot of money from such a volatile stock. For example, this stock (which is a SPAC Stock) started with a lot of hype and like all SPAC stocks was 10 dollars a share when it went public.
Well… after the stock jumped to around 55 dollars within that timeframe of rising people like me jumped on the space stocks trend, but the stock has taken a dive, a very crashing horrific dive! They even did a reverse stock split to save face. For those that don’t know what a stock split is, it is when shares are worth less, but you get more. A reverse stock split is when you get fewer shares but more expensive. Their stock right now is a whopping $2.99 per share as we speak. That means technically their stock is not even at a penny.
Don’t be Fooled
Please when you see in the headlines articles that they are doing a new launch or something really cool, await with caution before investing. As in the early 2020’s they seemed to always be making the news in order to get their stock to bounce. You will word like “investors are excited” or “mark you calendars for the new launch,” from articles like this: Dear Virgin Galactic Stock Fans, Mark Your Calendars for Testing in April like yahoo finance just put out. For the love God proceed with caution.
Virgin Galactic Scandal
There are so many scandals with this company is makes me want to puke. For instance, the 2021 Branson Flight Investigation. Virgin galactic stock got huge backlash for failing to communicate the deviation to assigned airspace.
There is also investor lawsuits suing the company for giving, you heard it, false or misleading statements and did not properly disclose of information about the safety of its ships. As of now, the case is ongoing and this is from 2024.
The scandal that unnerves me the most is INSIDER TRADING. Reuters | Breaking International News & Views reported of this that Chamath Palihapitiya sold 6.2 million in shares in 2021 of march. Guess what the stock price went down too?! Before the split it was at $7.96 a share. Yes, you heard before people like you and me heard to sell the insiders did!
Final Thought
Again, if you are looking into purchasing Virgin Galactic stock, research the cons first. This stock is not even at a penny if it was before the reverse stock split.
Disclaimers* Timothy Gocklin holds An MBA and master’s in finance, but he is not a financial advisor. This is not financial investment advice.