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Investors punished Virgin Orbits (VORB)’s stock after the company’s first-ever international rocket launch attempt failed in early January.
Virgin Orbit stock subsequently dropped 14%. The good news for shareholders now is that investors seem to have moved past their initial disappointment, even though an ongoing investigation has been unable to explain the anomaly. Over the past three weeks since Virgin Orbit lost its meteor, the company’s stock has recovered by 4%.
Yes, you can now invest in Virgin Orbit (VORB) stock. The California-based company specializing in launching small satellites into orbit became a publicly traded company on the Nasdaq Stock Market in August 2021 through a merger with a special purpose acquisition company (SPAC) called NextGen Acquisition Corp.
Current Stock Price and Performance:
As of October 26, 2023, Virgin Orbit’s stock is trading at around $8 per share, down approximately 2% for the week This represents a significant decline from its initial offering price of $10 per share.
Factors Influencing VORB Stock Price:
- Market Volatility: The overall market volatility and economic uncertainty have impacted VORB’s stock price, along with other growth stocks.
- Competition: The space industry is becoming increasingly competitive, with numerous companies vying for market share.
- Launch Success Rate: Virgin Orbit’s success rate for launches is crucial for investor confidence. The company has experienced some setbacks, which have impacted its stock price.
- Future Growth Potential: Investors are assessing Virgin Orbit’s long-term growth potential and its ability to secure new launch contracts.
Investment Considerations:
Investing in Virgin Orbit stock involves significant risks and uncertainties. The company is still in its early stages of development, and its future success is not guaranteed. However, it also presents potential opportunities for investors who believe in the long-term growth of the space industry.
Before investing in VORB stock, consider the following factors:
- Risk Tolerance: Virgin Orbit is a high-risk, high-reward investment. Investors should have a high tolerance for risk and be prepared for potential volatility.
- Investment Horizon: Investing in VORB is a long-term proposition. Investors should be willing to hold the stock for several years to realize potential gains.
- Financial Analysis: Conduct thorough research and financial analysis of Virgin Orbit’s business model, financials, and competitive landscape.
- Diversification: Diversify your portfolio to mitigate risk. Don’t invest more than you can afford to lose.
Investing in Virgin Orbit (VORB) stock is a complex decision that requires careful consideration. While the company has promising growth potential, it also faces significant risks and uncertainties. Investors should conduct thorough research, assess their risk tolerance, and make informed decisions based on their individual circumstances.
A couple bad rockets are the least of Virgin Orbit’s problems
Regarding performance, Virgin Orbits’ track record thus far isn’t too bad for a fledgling rocket company. Only two of Virgin Orbit’s first six launches—its inaugural one and its most recent—failed to reach orbit, with the other four succeeding.
Virgin Orbits 0 Compared to other rocket start-ups, such as Astra, which has only achieved two unqualified successes in nine attempts, or ABL, which is currently 0 for 1. 666 batting average doesnt look too shabby. But from a business standpoint, I have to admit that this 2021 SPAC IPO-turned-space stock appears to be in trouble.
Just take a look at the numbers.
According to data from S&P Global Market Intelligence, Virgin Orbit is burning through cash at an annualized rate of $233 million per year — except that Virgin Orbit doesnt actually have $233 million to burn. Absent an inflow of cash, or revenue from some successful rocket launches, the company might not survive another year.
referring to S once more This amount does not seem to include recent cash infusions from Sir Richard Branson’s Virgin Investments Limited, which could bring the company’s cash level to approximately $116 million. Even so, it would only be sufficient to cover six months’ worth of cash burn.
Let’s assume Virgin Orbit can resolve the issue with this month’s rocket launch and resume its planned course of action. Presume it can swiftly reverse course and resume firing rockets. How might this affect the companys financial position?.
Well, according to data compiled by NewSpace. Virgin Orbit charges $12 million for a payload launch that can carry up to 300 kg. Thus, in order to break even and offset its cash burn rate, the company needs to launch at least 20 times annually. (And probably much more than that, considering that rocket launches are both expensive and profitable.) Virgin Orbit isn’t launching at all at the moment, and losing its final rocket won’t make it any easier for it to sell rocket launch services.
However, the greater issue facing Virgin Orbit is that, even though the $12 million price tag is too high to turn a profit, it’s also probably too low to draw in a large number of clients. Further examination of the NewSpaces data suggests that the cost of a Virgin Orbit rocket launch is approximately eight times higher than the $5,000 per kilogram that SpaceX charges for a smallsat rideshare. Additionally, it costs more than other small rocket launchers with which Virgin Orbit directly competes.
For payloads up to one metric ton, ABL, for instance, intends to charge just $12,000 per kilogram (assuming it can ever get a rocket off the ground). Astras new “Rocket 4” will launch for $19,750 per kilogram. Even Rocket Lab charges only $255,000 per kilogram of their Electron rocket, which now matches Virgin Orbits LauncherOne’s payload at 300 kg to low-Earth orbit.
Virgin Orbit Stock: What Is Richard Branson Up To?
FAQ
What happens to Virgin Orbit stock?
Will Virgin Orbit survive?
Is it worth buying Virgin Galactic stock?
Is Virgin Orbit a public company?
What will Virgin Orbit do with growth capital?
Using the growth capital from the transaction, Virgin Orbit will further scale its rocket manufacturing to meet customer demand, and to fund growth in its space solutions business and Virgin Orbit’s ongoing product development initiatives.
How much money does Virgin Orbit make a year?
According to public filings posted Monday, Virgin Orbit has about $300 million worth of contracts already lined up, and it expects to be bringing in more than $2 billion in revenue per year by 2026 as it sells services to commercial satellite operators as well as government customers.
Is Virgin Galactic the only space company you can invest in?
But Virgin Galactic isn’t the only space company named “Virgin” that you can invest in. A little over a month ago, Virgin Galactic’s sister company, Virgin Orbit (which launches satellites rather than humans to space) announced that it, too, plans to go public in a SPAC-sponsored IPO.
Will Virgin Orbit go public?
Virgin Orbit, the Richard Branson-backed startup that launches small satellites into space, will make its stock market debut later this year, adding another name to the long list of space-focused companies to go public via reverse merger.