2024-05-14 15:20:28 ET
Summary
- Virgin Galactic's Q1 2024 results show improvements in revenue and cash burn rates, but the primary goal of generating significant revenue is still a few years away.
- SPCE's guidance suggests higher ticket prices, but the target of becoming cash flow positive in 2026 may still be optimistic.
- The development of the next-gen mothership is delayed, and the current generation will need to increase flight frequency to meet ambitious goals.
The Virgin Galactic Investment Thesis
A lot has happened since my last article on Virgin Galactic Holdings, Inc. ( SPCE ) last December. Therefore, I would like to see if my thesis is still valid or if I need to adjust it. At that time, I believed that the liquidity reserve might not be sufficient to reach the point where Virgin Galactic could achieve positive cash flow without further capital raising or investment, and that the planned start of Delta flights in 2026 was an optimistic estimate....
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Virgin Galactic: The Guidance Looks Better Than I Expected