Virgin Galactic (NYSE:SPCE) stock is falling on Thursday despite a lack of news from the spaceflight company.
Instead, it’s thanks to an update from sister company Virgin Orbit (NASDAQ:VORB) that shares of SPCE stock are down today. Virgin Orbit announced an operational pause starting today that will last until March 21.
The reason given for this pause is the company negotiating for additional funds. To go along with that, Virgin Orbit also said it’s considering strategic alternatives. This saw the company’s shares take a beating on Thursday morning.
How This Affects SPCE Stock
Considering these two companies are connected, it makes sense that negative news from one would affect the other’s shares. Especially considering that both companies are involved with space via rocket and satellite projects.
Investors will also keep in mind that Virgin Galactic still hasn’t reached its commercial launch yet. Other factors to keep in mind are the company’s $980 million in cash and short-term investments as well as its debt of roughly $415 million. While in a better place than VORB stock, this does raise some concerns among traders.
With those concerns come a 4.6% drop for SPCE stock as of Thursday morning. However, shares are still up 26.7% since the start of the year.
Investors looking for more of the latest stock market stories will want to keep reading!
We’ve got all of the hottest stock coverage traders need to know about for Thursday! That includes why shares of Snap (NYSE:SNAP) and Blink Charging (NASDAQ:BLNK) stock are moving, and other recent news. You can find all of that news at the following links!
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- Market Mover Alert: Mark Your Calendars for March 17
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.