Virgin Galactic reports first loss since stock went public
Capitalism in space: Virgin Galactic today released its first quarterly report since the company’s stock went public in October, reporting a net loss of $51.5 million during the third quarter of 2019.
The stock initially opened in October at $12.93. It quickly dropped 25% in value, and has generally been trading at about $10 a share since. With today’s release the stock immediately dropped below $10, but it appears to have settled at around $9.75, for the moment.
According to this story, they presently have reservations from 600 people for suborbital flights, and have received 3,557 inquiries about flight reservations as of the end of September.”
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Capitalism in space: Virgin Galactic today released its first quarterly report since the company’s stock went public in October, reporting a net loss of $51.5 million during the third quarter of 2019.
The stock initially opened in October at $12.93. It quickly dropped 25% in value, and has generally been trading at about $10 a share since. With today’s release the stock immediately dropped below $10, but it appears to have settled at around $9.75, for the moment.
According to this story, they presently have reservations from 600 people for suborbital flights, and have received 3,557 inquiries about flight reservations as of the end of September.”
The support of my readers through the years has given me the freedom and ability to analyze objectively the ongoing renaissance in space, as well as the cultural changes -- for good or ill -- that are happening across America. Four years ago, just before the 2020 election I wrote that Joe Biden's mental health was suspect. Only in this year has the propaganda mainstream media decided to recognize that basic fact.
Fourteen years ago I wrote that SLS and Orion were a bad ideas, a waste of money, would be years behind schedule, and better replaced by commercial private enterprise. Even today NASA and Congress refuse to recognize this reality.
In 2020 when the world panicked over COVID I wrote that the panic was unnecessary, that the virus was apparently simply a variation of the flu, that masks were not simply pointless but if worn incorrectly were a health threat, that the lockdowns were a disaster and did nothing to stop the spread of COVID. Only in the past year have some of our so-called experts in the health field have begun to recognize these facts.
Your help allows me to do this kind of intelligent analysis. I take no advertising or sponsors, so my reporting isn't influenced by donations by established space or drug companies. Instead, I rely entirely on donations and subscriptions from my readers, which gives me the freedom to write what I think, unencumbered by outside influences.
Please consider supporting my work here at Behind the Black.
You can support me either by giving a one-time contribution or a regular subscription. There are five ways of doing so:
1. Zelle: This is the only internet method that charges no fees. All you have to do is use the Zelle link at your internet bank and give my name and email address (zimmerman at nasw dot org). What you donate is what I get.
2. Patreon: Go to my website there and pick one of five monthly subscription amounts, or by making a one-time donation.
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5. Donate by check, payable to Robert Zimmerman and mailed to
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You can also support me by buying one of my books, as noted in the boxes interspersed throughout the webpage or shown in the menu above. And if you buy the books through the ebookit links, I get a larger cut and I get it sooner.
Of course, they reported a loss, they have no income. If they have 600 reservations, they may have a plie of cash, they also have 600 debts and not a penny of revenue. If I pay them $1K to reserve a flight, it is not recorded as revenue, it is recorded as an increase to Cash of $1K and a corresponding Debt of $1K (they owe me a flight). When they send me up, the debt is reversed (goes to zero) and $1K of revenue recognized. This is all Accounting 101. Unless Branson is selling VG tchotchkes or something (wouldn’t put it past him), they have no sales to record.
In my personal accounts I have moved $1K from the asset Cash to another asset, Prepaid Flights They owe me either a flight or my money back. (or I could sell the reservation to you, like any other asset)
Speculation 1) the loss was bigger than the Street expected 2) Buyers remorse at seeing the word “loss” drove the stock price down.
…and have received “3,557 inquiries about flight reservations as of the end of September.”
But since when? Since Virgin Galactic was first organized? Since it went public? I’m guessing the former which is not encouraging.
I wonder what their policy is on getting your deposit back?
If I had a few 10’s of 1000’s to spend on a suborbital flight… I’d be depositing with Blue Origens at this point…
There must be a sound reason SpaceX has never given the option for a tourist suborbital “experience”… Not even genuinely advertised an orbital tourist package… ( Around the moon notwithstanding… For the silly rich..)
I’m sad to say it, but I agree with our host… Virgin Galactic is as good as dead in the water… Too low specs, too long development time, and the only “new space” company to have deaths… Multiple ones during development…
My shares ( if I had any ) would have been offloaded long ago..
I’ll buy in when they get down to the penny stock range.