Virgin Galactic’s share price has dropped by more than 10 per cent in less than a week. Today’s trading session also looks poised to extend the drop, although SPCE share prices have gained about a percentage.
Why is Virgin Galactic’s share price falling?
The last week has seen Virgin Galactic’s share price fall more than 10 per cent, putting many investors on edge. One of the reasons that the company’s share prices have fallen is the recent competition in the space industry.
Jeff Bezo’s Blue Origin successfully sent another six people into suborbital space this week. This was a significant milestone for the company, which marked the fourth time they had successfully achieved a suborbital space trip. The trip took roughly 10 minutes between when the flight was launched and when the crew landed.
Virgin Galactic has clearly stated its intentions of dominating space travel. However, with Blue Origin’s recent success, investors may have been spooked, triggering a bearish trend. Galactic’s other competitor, SpaceX, has also been making moves. This includes the Crew-4 mission, which will collaborate between SpaceX and NASA.
The project is aimed at sending astronauts to space stations. The hardware used in the project will likely be from SpaceX. Such milestones from Virgin Galactic’s competitors may become problematic to the company’s investors. This is especially true if the company fails to compete effectively.
Virgin Galactic Share Price Prediction
Looking at the daily chart below, we can see the recent drop that resulted in a 10 per cent decline in Virgin Galatic’s share price. We can also see that the prices have been on a downward trend since November, and the current bounce may be a retracement.
This is because, after hitting the 23 per cent retracement level, the prices have already dropped by 10 per cent. Although today’s trading session has been slightly bullish, the prices also look poised to keep dropping.