Why are Virgin Galactic (SPCE), Joby (JOBY) stocks in focus today?

Highlights

  • Virgin Galactic Holdings Inc (NYSE: SPCE) stocks tanked on September 3, a day after FAA announced an investigation into some technical issues during its space mission.
  • Joby Aviation (NYSE: JOBY) stock tumbled after filing with SEC for resale of 540 million shares.

The Virgin Galactic Holdings Inc (NYSE: SPCE) stock tanked on Friday after the FAA said it will probe the technical issues faced during Virgin’s spaceflight, while the stock of Joby Aviation (NYSE: JOBY) fell after the company announced the resale of its 540 million shares.

The Virgin stock dropped 7.10 percent to US$24.14 at 12.55 pm ET on September 3, a day after the Federal Aviation Administration (FAA) grounded SPCE. The FAA will investigate SPCE’s test flight carrying its CEO Richard Branson on July 11.

Virgin Galactic Holdings Inc

The company cannot fly its SpaceShipTwo vehicle till FAA approves the investigation, an FAA official said. Branson and three members of the company reached space onboard the SpaceShipTwo, a winged suborbital space tourism plane on July 11.

Also read: Virgin Galactic (SPCE) & Astra Space (ASTR): 2 space stocks flying high

Source: Pixabay.

The two pilots of the mission were alerted with yellow and red warning lights, indicating the spaceship was not ascending vertically enough, and while returning to the earth, it veered out of Air Traffic Control airspace, triggering the FAA investigation. Meanwhile, a SPCE spokesperson in a said that the company has taken the issue seriously and is probing the cause.

Virgin’s a market cap is US$6.2 billion, the forward P/E one year is -17.80, and the EPS is US$-1.59.

In Q2 of 2021, it reported a net loss of US$94 million compared to a net loss of US$72 million in Q2, 2020. The adjusted EBITDA was US$56 million in Q2, 2021, compared to US$54 million in Q2, 2020. It reported revenue of US$0.57 million in Q2, 2021.

Also read: Jeff Bezos' Blue Origin sues US govt over space contract

Joby Aviation

Its stocks tumbled by 17.85 percent to US$9.78 at 1.26 am ET on September 3. On September 2, the company filed with the Securities and Exchange Commission for the potential resale of 540 million shares of common stock. On September 1, the company had announced its partnership with NASA to fly electric aircraft as part of its Advanced Air Mobility National Campaign.

Its market cap is US$5.8 billion, and the highest and lowest stock prices in the last 52 weeks were US$17 and US$8.25, respectively.

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