Virgin Galactic plunges 15.0% after latest financial results

Virgin Galactic (SPCE.US) stock fell more than 15% on Wednesday as latest quarterly report revealed  space travel company funded by Richard Branson's empire, was burning cash at a faster pace in 2022 compared to previous year as it spend more funds on research and development, which was perceived rather negatively by investors in the uncertain macro environment. On the other hand, company still plans to launch first commercial flights in Q2 accompanied by the Italian Air Force after which company services will available to private customers:

• The company recorded a loss of $133 million in Q4 compared to $65 million los in Q4 2021. However, it still has an additional $980 million in cash;

• The company has carried out a number of maintenance and improvements jobs to the jet-powered mother ship VMS Eve and is completing a long modernization process

• Earlier this month, two successful flight test VMS Eve were carried out after which ship was moved from  production facility in Mojave to Spaceport America in New Mexico

• Virgin said it's on its way to resume spaceflights in the coming months.

• Before the commercial flight, a series of tests will be carried out, which will reveal whether recent improvements of VMS Eve were successful. Next Virgin plans to launch tests into space with the company's full crew on board. In the past, these events have had a significant impact on a company's stock price.

Virgin Galactic (SPCE.US) stock break below major support at $4.90, which coincides with 50.0% Fibonacci retracement of the last upward wave and 50 SMA (green line). Source: xStation5