Virgin Galactic

SPCE

Market cap $479M

Virgin Galactic's stock was taking a historic dive on Tuesday after the space-tourism firm disclosed new details about how it plans to shore up its finances.

Virgin Galactic shares (SPCE) plunged on Tuesday, reversing part of a dramatic rally that had made the stock one of the biggest gainers among space-related companies in recent weeks. The stock fell as much as 38%, marking its steepest one-day decline on record, after the space tourism company announced plans to repay debt by issuing common shares.

To the moon? Perhaps not—but shares of suborbital flight company Virgin Galactic are certainly on a ride this week.

Shareholders face dilution from the company's plan to repay debt with stock.

Space stocks are splitting hard in Tuesday's session. Virgin Galactic (NYSE:SPCE) stock is crashing 32% to around $5.08 in mid-morning trading, while AST SpaceMobile (NASDAQ:ASTS) stock climbs 10% to around $116 and Planet Labs (NYSE:PL) stock advances 9% to around $50.50.

SPCE rallies sharply to a multi-year high on strong volume and technical breakouts, with momentum suggesting a potential broader bullish trend while short-term overbought conditions persist.

Virgin Galactic (NASDAQ: SPCE) stock has gone parabolic, reaching its highest point since June 2024 as investors piled into space-related companies. SPCE jumped to $8.85, up by over 300% from its lowest point this year, with its market capitalization soaring to nearly $700 million.

The space sector split is widening fast Monday morning. Virgin Galactic (NYSE:SPCE) stock is up 18% to $7.28, while launch-exposed peers are sliding hard.

Virgin Galactic Holdings Inc. (NYSE:SPCE) has been one of the most explosive trades of the spring, surging more than 165% over the past month and turning short sellers into reluctant spectators as retail momentum builds ahead of a critical commercial launch window.

Virgin Galactic surged 81% last week, likely due to confusion with the upcoming SpaceX IPO and social media-driven speculation. SPCE faces substantial going concern risks, with only $219 million in liquid assets and a quarterly cash burn near $90 million, implying less than three quarters of runway. Reduced operating expenses stem from slashed R&D, threatening long-term competitiveness or forcing future spending increases that current liquidity cannot support.