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Virgin Galactic stock dropped more than 10% on Monday morning, the day after Richard Branson’s company completed the world’s first space tourism flight.
Shares in
which rose 217% in the two months ahead of Sunday’s flight, climbed more than 8% in premarket trading. The selloff occurred soon after the market open. The stock is 107% up year to date thanks to a number of catalysts, including June’s regulatory approval from the Federal Aviation Administration, which sent the shares close to 40% higher in a single day.
The landmark flight to the edge of space opened up a new frontier for commercial space travel in a race between billionaires that has captivated investors.
The hourlong flight from a desert in New Mexico took off shortly after 10.30 a.m. ET, with Branson himself aboard the company’s VSS Unity spaceplane. At the peak altitude of about 57 miles, just short of what many consider the boundary of outer space, Branson and three fellow passengers experienced weightlessness for several minutes and took in sweeping views.
The successful trip is a landmark moment in the space tourism race, but there are many more expected.
founder
Jeff Bezos
plans to make his own flight to the edge of space on July 20 in his Blue Origin New Shepard capsule.
There is more competition to come, as
Chief Executive
Elon Musk
is planning a number of SpaceX missions, taking passengers on longer trips, with the first scheduled for September.
Write to Callum Keown at callum.keown@dowjones.com
