Prof G Markets: Virgin Galactic is Going to Zero, Stock as Collateral + Instacart & the IPO Market

Financial Hurdles

Virgin Galactic is facing significant financial hurdles, with net losses nearly doubling to $150 million in the fourth quarter. Despite generating some revenue, the company remains deeply unprofitable and has yet to conduct any commercial flights. Scott Galloway criticizes the business model, stating, "It's literally the shittiest business in the world." 1 He argues that the company is both supply and demand constrained, making it an unsustainable venture. 2

   

Tourism Debate

The viability of space tourism is hotly debated, with Scott Galloway and others expressing skepticism about its future. Public sentiment is mixed, with some people excited about the idea while others are hesitant due to safety concerns and high costs. Scott notes, "Space travel is more dangerous than base jumping," highlighting the risks involved. 3

   

Future Outlook

Scott Galloway predicts that Virgin Galactic will eventually go to zero, either through restructuring or being sold for its intellectual property. He remains highly skeptical of the company's ability to conduct commercial flights in 2023. Scott states, "Even though Virgin Galactic has gone down 90%, I think it can go down another 90%." 4