Virgin Galactic (NYSE: SPCE) shares have endured a dramatic plummet, sliding nearly 60% in the past year and a staggering 95% from their 2021 peaks. Contrarians might spy a prime buying opportunity amidst the prevailing pessimism. However, caution is warranted, as significant risks loom. Here are three essential factors to ponder before contemplating an investment in this deeply out-of-favor space stock.
The Bottomless Pit of Losses
For prospective Virgin Galactic investors, it’s crucial to grasp that the company is essentially still in its startup phase. While it has successfully demonstrated its capability to ferry paying customers to space, the sustainable long-term viability of this enterprise remains unproven. Two critical points demand attention.
