Virgin Galactic trades lower following Q1 earnings

Yahoo Finance’s Jared Blikre joined Yahoo Finance Live to break down Virgin Galactic's first-quarter earnings report.

Video transcript

ADAM SHAPIRO: Jared, within the last 52 weeks, we've seen Virgin Galactic trade as high as $62 and then some in change. Not anymore, and they're out with earnings. What are they telling us?

JARED BLIKRE: That's right. We have revenue of $0. This is a pre-revenue company, so we're not surprised about that. A year ago, they still managed pull in about a quarter of a million dollars, $250,000. Don't write home about that. They're not taking people to space just yet. But I'll tell you what-- cash and cash equivalents coming in at 616-- $16.6 million. That's up 47% from a year ago. They have plans to finally launch their tourism into space. And they're going to require a lot of capital to do that. But the net loss coming in at $129.7 million versus a loss of $59.9 million a year ago.

Now here's a quote from their earnings report. This is coming from the CEO. We continue to make strides towards our strategic objectives and have solid momentum as we focus on completing our flight test program. We are continuing-- we are committed to delivering one of the world's most unique and transformational customer experience with safety at the core of everything we do. Our greatest asset is our incredibly talented group of employees and the strength of the leadership team we have assembled for the next phase of the journey.

You're looking at a year to date chart there. And you can see we're off sharply from these highs. And you take a look at what's happened on a max chart. This was-- it kind of became a meme stop when we had the GameStop and Reddit phenomenon going on earlier in the year. And we're back down to some critical potential support that we have around $15, $16, $17 right there, guys.