NEW YORK, May 22, 2026, 14:09 EDT
- Virgin Galactic shares traded around $3.25, up roughly 18%. Volume was much higher than usual.
- The stock jumped 11.34% on Thursday as space-related names caught a bid.
- The company is still dealing with cash burn and financing risk as it aims for flight testing later this year.
Virgin Galactic Holdings stock rose Friday afternoon, keeping up a rally after renewed interest in space stocks. Investors moved in following new information about SpaceX’s planned IPO, the company’s first public share sale.
The stock traded near $3.25 in the latest action, gaining about 18% for the day after reaching more than $3.40 earlier in the session. Volume ran almost triple the typical level, with the moves pointing to short-term traders fueling activity, not only long holders.
Virgin Galactic snapped a four-day slide, jumping 11.34% to $2.75 on Thursday after a volatile week. The Nasdaq Composite was up 0.09% and the Dow climbed 0.55% the same session.
Space stocks got a boost Friday, but it wasn’t off any fresh Virgin Galactic announcement. The Wall Street Journal said AST SpaceMobile and Virgin Galactic both jumped over 9% as talk of a SpaceX IPO drove up listed space shares. Rocket Lab and Firefly Aerospace also traded higher.
SpaceX is looking to set up a staged lock-up for early share resales after its IPO, Reuters said, instead of the usual six-month freeze. The report said the company has a $1.75 trillion valuation target. Ali Perry, an attorney at Mayer Brown, told Reuters this could help SpaceX avoid “one big lock-up cliff.” But Perry also noted it wouldn’t take out all the volatility. Reuters
Virgin Galactic investors aren’t focused on this quarter’s revenue, but instead are eyeing the next big steps for the company’s spacecraft program. Virgin Galactic said on May 14 that ground tests are underway for its first new SpaceShip. Flight testing is still set for the third quarter, with the first spaceflight planned in the fourth quarter.
Chief Executive Michael Colglazier said Virgin Galactic has “delivered the first of our new SpaceShips” to the test-and-launch hangar and said the company remains “on track” with its flight schedule. Colglazier called this one of the “final quarters of our pre-revenue phase.” Virgin Galactic
Virgin Galactic’s numbers stay weak. The company posted $0.2 million in first-quarter revenue, a net loss of $65 million, and negative free cash flow of $93 million. Free cash flow here is cash left after running costs and capital spending; a negative means Virgin Galactic burned cash.
Virgin moved to cut its cash drain. In a May 18 filing, the company said it redeemed $10 million of 9.80% first-lien notes by issuing 3.77 million shares. That leaves about $202.5 million of the notes still out. Virgin called the step part of a capital-management and cash-preservation plan.
But a sector rally might not solve the balance sheet problem. Virgin Galactic’s latest quarterly filing shows it is still pre-commercial service, reports no spaceflight revenue, and expects big costs with its next-gen spaceships. The company also warned about “substantial doubt” on its ability to keep going—an accounting red flag about whether Virgin Galactic can stay funded without more help. SEC
The stock is still caught between the SpaceX IPO timeline and Virgin Galactic’s test flight schedule. Delays on tests, a soft risk tone after the holiday, or new equity deals could all turn this trade fast.
U.S. stocks traded Friday. The New York Stock Exchange has Memorial Day, Monday, May 25, on its 2026 market holiday calendar. Trading picks up again Tuesday. Virgin Galactic is still drawing interest as a high-beta space play, more in focus than earlier this week.
