Virgin Galactic hasn’t proven that it can take tourists to space, yet it has already taken stock investors to the skies. Virgin said that its first passenger flight, which will carry Mr. Branson himself, has been pushed back from this year into 2021. Roughly 700 customers have made prepayments on flights, but Virgin still needs cash and this month issued new shares, diluting existing investors. Short sellers are circling, conscious that the rally can partly be explained by individual investors’ love for “sexy” companies. This year, they have clocked $372 million in mark-to-market losses on Virgin, according to financial analytics firm S3 Partners.

Source: Wall Street Journal August 16, 2020 14:02 UTC