Virgin Sells Investors a Moonshot
A private for-profit company reports near-zero quarterly revenues for every quarter since it first began releasing results. For the first nine months of 2019, it generated revenues of only $3.3 million yet burnt through so much cash that its net loss was $138 million. Any substantial revenue, much less a positive net income, is still years off. Then, it launches an initial public offering last month at $11.80, with the share price rallying soon after to $12.
And the market cap has hit nearly $1 billion.
Welcome to the personality cult surrounding the Virgin brand name and the near science-fiction world of commercial space travel. Founded by billionaire Richard Branson, one of Europe's wealthiest and most storied entrepreneurs, Virgin Galactic Holdings (NYSE: SPCE) became the first space travel company to go public with a listing on the New York Stock Exchange.
Source Fool.com
