Key points:
- Virgin Galactic stock edged 3.55% lower after Chamath Palihapitiya resigned.
- Chamath was the space tourism company’s chairman since its IPO via a SPAC.
- Virgin Galactic stock surged after launching space flight bookings.
The Virgin Galactic Holdings Inc (NYSE: SPCE) stock edged 1.55% lower after announcing the resignation of its billionaire chairman Chamath Palihapitiya with immediate effect.
Investors were largely unbothered by the announcement, given that the billionaire had already sold his entire stake in Virgin Galactic for $211 million in March 2021.
At the time, Chamath said he wanted to free up some capital to keep investing at scale in his other ventures focused on companies that tackle climate change and inequality, saying they represented a hundred billion opportunity.
Michael Colglazier, Virgin Galactic’s CEO, said: “Chamath was instrumental in the launch of Virgin Galactic as a public company and, as our inaugural chair, his deep and astute insights have been incredibly valuable to both me and the company as we have grown and strengthened our business foundation.”
Chamath said that he was leaving Virgin Galactic to focus on his responsibilities on the boards of other public companies and other upcoming opportunities.
The billionaire investor is known as the SPAC King after founding and listing six special purpose acquisition companies (SPACs), helping launch the SPAC craze of 2021 on Wall Street.
Virgin Galactic shares were trading lower at publishing as investors finally reacted negatively to news of Chamath’s departure.
The space tourism company’s shares had surged higher earlier this week after launching the sale of tickets to its first space flights priced at $450,000.
Virgin Galactic was looking to attract at least 1,000 investors, each paying a $150,000 deposit to generate $150 million in cash flow.
However, some analysts were pessimistic about the space tourism company’s prospects saying that it would take hundreds of trips to take 1,000 tourists to space; hence, such a plan would have to unfold over several years.
Still, Virgin Galactic’s share price has significant potential after falling 81.53% in the last 12months, and most investors would love to see the shares reverse course and head higher.
Virgin Galactic stock edged 4.44% higher to trade at $8.61, rising from Thursday’s closing price of $9.01.
*This is not investment advice. Always do your due diligence before making investment decisions.
