Virgin Galactic Holdings, Inc. (SPCE) manufactures and operates spaceships and related technology for commercial human spaceflight and commercial research and development payloads in space. However, the uncertain demand and high costs of space tourism make it a risky investment for investors.
With SPCE reporting a poor financial performance in its recent quarter, it could remain under pressure in the current turbulent macroeconomy. The company’s losses are primarily driven by investments related to the development of the future fleet and enhancements for the current fleet. With questions on whether the company can generate enough to cover its losses, the prevailing high-interest rates make its profitability prospects look bleak.
