The infamous Richard Branson, one of the bunch tech billionaires with a dream of conquering space will not sleep well tonight.
After the failed launch of the satellite yesterday by Virgin Orbit, today, the stock market reacted with a reverse rocket on the price of the stock of Virgin Orbit. The price tanked with 22 % in one day, which is a huge loss for the company.
The short memory of the stock market
This shows once again how stock markets have a very short memory span. This one failed launch doesn’t mean that in the long run this company is bad. It’s one failed launch! A very emotional reaction of the markets which could mean a similar move up after good news is equally possible… That would again be an emotional but not rational move.
Do your due diligence when you buy or sell a stock, and don’t act by emotions!