One of the more interesting moves in today’s market comes from Virgin Orbit (NASDAQ:VORB). Today, VORB shares sank more than 13% in early afternoon trading. announcements some relatively positive news today.
Today, the company announced that officially sent seven satellites into orbit, in its fourth air launch. Accordingly, investors may want to point out that this is the third consecutive successful launch of Virgin Orbit. Three separate parties launched their satellites from the Pacific yesterday. Each satellite should be successfully installed in the planned orbit.
It is therefore not clear what exactly is driving this declining momentum of VORB shares today. In fact, the sale has been going on since yesterday, right at the time of launch.
Where should investors in VORB shares go?
It should be noted that Virgin Orbit is one of the newest members of the group Nasdaq, list less than a week ago. Like us reported, this ranking has met with serious interest from both institutional and retail investors. This led to too much volatility in VORB shares as the satellite launch company fell and then rose before today’s decline.
The fact that the VORB share swung from a reference price of $ 10 to below $ 6 per share before recovering all its losses, and then some suggest that the market is having trouble setting the price of that share. Given how early-stage Virgin Orbit is on the path to growth, investors seem to be at a loss as to what this company itself is worth. Accordingly, there may be more volatility on the horizon.
In addition, it seems that some investors may be appalled by the delays this year. Originally scheduled for January 12, the launch date was postponed for one day. A seemingly insignificant move, so it’s hard to digest what exactly drives a VORB share, other than fundamental differences of opinion regarding the valuation of that share.