Virgin Galactic Holdings Faces Turbulent Times Amid Stock Decline and Analyst Concerns

Virgin Galactic Holdings has experienced a 20.10% stock price decline due to investor concerns and analyst ratings. A maintained 'Sell' rating from Morgan Stanley and delays in the commercial spaceflight program, now expected to launch in 2026, contributed to the decline. The company reported a 34% reduction in operating expenses, but free cash flow remained negative. Despite setbacks, analysts like Oliver Chen maintain a 'Buy' rating, citing the company's strategic planning and potential revenue from its Delta Class Spaceships.

Virgin Galactic Holdings Inc. (NYSE: SPCE) has experienced a significant 20.10% stock price decline in recent weeks, driven by investor concerns and analyst ratings. The company's stock has been under pressure due to a maintained 'Sell' rating from Morgan Stanley and delays in its commercial spaceflight program. The company's stock price currently stands at $3.42, down from its previous target of $5.00 set by Morgan Stanley [1].

The delay in the commercial spaceflight program, now expected to launch in 2026, has pushed back potential revenue generation and contributed to the stock decline. Morgan Stanley cited the schedule slip as a primary reason for lowering its price target to $2.50 [1]. Despite the delay, Virgin Galactic remains focused on its long-term objectives in the space tourism sector.

In its recent earnings report, Virgin Galactic highlighted a reduction in operating expenses by 34%. However, free cash flow remained negative, indicating ongoing financial challenges [3]. The company has also paused commercial operations to focus on developing its upgraded Delta spacecraft, which is being optimized for reusability and faster turnaround times between flights [3].

Analysts remain divided in their opinions on Virgin Galactic. While Morgan Stanley maintains an Underweight rating, Oliver Chen of Cowen & Co. has a 'Buy' rating on the stock, citing the company's strategic planning and potential revenue from its Delta Class Spaceships [2]. Chen believes that the company's long-term potential in the space tourism sector outweighs the near-term setbacks.

Investors are closely monitoring Virgin Galactic's progress as it continues to refine its operational strategies. The company's ability to generate revenue and improve its financial performance will be critical in regaining investor confidence and reversing the recent stock price decline.

References:
[1] https://www.investing.com/news/analyst-ratings/morgan-stanley-cuts-virgin-galactic-stock-price-target-to-250-on-delays-93CH-4180220
[2] https://in.investing.com/news/analyst-ratings/morgan-stanley-cuts-virgin-galactic-stock-price-target-to-250-on-delays-93CH-4953551
[3] https://www.bloomberg.com/news/articles/2025-08-06/virgin-galactic-spce-to-delay-first-spaceplane-flight-to-fall-2026