Why Virgin Galactic Shares Are Descending Today

Chamath Palihapitiya is leaving the board of Virgin Galactic Holdings (NYSE: SPCE), causing some investors to head for the exit as well. Shares of the space tourism company traded down as much as 5% on Friday morning after the well-known investor announced he will no longer chair its board.

Palihapitiya has been with Virgin Galactic since the beginning of its public life. His Social Capital Hedosophia Holdings sponsored the special purpose acquisition company (SPAC) that took Virgin Galactic public in October 2019, and Palihapitiya until now had served as chairman of the company's board as well as owning a significant stake.

A Virgin Galactic space plane. Image source: Virgin Galactic.

Source Fool.com