Virgin Galactic Shares Plunge After FAA Crackdown and GameStop Shares Fall Before Q2 Earnings Report
On Friday, shares of Virgin Galactic plunged, closing down 6.58%.
Shares of the space flight company fell after the Federal Aviation Administration announced it is investigating the company.
The FAA said in a statement to news media that Virgin Galactic “may not return the SpaceShipTwo vehicle to flight until the FAA approves the final mishap investigation report or determines the issues related to the mishap do not affect public safety.”
The problem appears to be small and is caused by a divergence in the descending flight path. In a statement, Virgin Galactic said it was complying with the FAA and working internally to resolve the issue, adding that “at no point were passengers or crew in any danger.”
The next flight of SpaceShipTwo is slated for late September or early October.
Shares of Virgin Galactic are down 22% in the past three months.
On Friday, shares of GameStop fell, closing down 5.04%.
Shares of the American video game, consumer electronics, and gaming products company fell as it gears up to report its Q2 earnings on Wednesday.
GameStop is anticipated to announce a loss of -$0.67 per share in its fiscal second quarter, down from a loss of -$1.40 per share a year earlier. The company expects a 20% increase in revenue year over year, reaching about $1.1 billion. In the previous four quarters, EPS forecasts have been surpassed twice.
After the market closes on Wednesday, September 8, 2021, GameStop Corp. will release its second-quarter fiscal 2021 earnings report.
Shares of GameStop are down 18% in the past three months.
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