Virgin Galactic Is Ringing the Warning Bells, and Investors Shouldn't Cover Their Ears
There are major crosscurrents impacting Virgin Galactic (NYSE: SPCE) today. On the one hand, the company has finally begun operating its space tourism business. On the other, its business model is actually dependent on a second-generation spaceship that is still in the early stages of development. The best way to see the financial mismatch this will cause is by comparing Virgin Galactic's financial statements to its financial projections.
When Virgin Galactic reported second-quarter 2023 earnings, it posted revenue of nearly $1.9 million. That was a jump from the $357,000 it brought in during the same quarter of 2022. This is because the company has now commenced regular flights sending tourists (and scientists) into space. It is, without a doubt, a pivotal moment in the company's history.
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Source Fool.com
