Why Virgin Galactic Stock Slumped Today

Striking a discordant note from the market's enthusiasm today is space tourism pioneer Virgin Galactic (NYSE: SPCE), shares of which are falling 5.2% in response to a big downgrade to "underperform" from analysts at investment bank Bernstein. As StreetInsider explains today, Bernstein just cut Virgin Galactic one notch to the equivalent of a sell rating and cut its price target on the shares to $4, implying roughly 33% downside in the stock. "We now have less confidence in the success of this business," states Bernstein bluntly, criticizing Virgin Galactic for continually pushing back plans to begin commercial space tourism flights, and warning that with paying flights not expected to begin before the second quarter of 2023 at the earliest, there is now only "limited potential for positive near-term catalysts."