Virgin Galactic SPCE has successful test flight now known hedge fund posting negative commentary on company. WHY?

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Thread locked since went off-topic.


Did you actually read the article? It’s long and detailed. Instead of asking why they posted it, why not refute their conclusion? What did they get wrong? As far as I can tell, your positive outlook is based on a successful test flight. The article talks about a lot more than that.


Some people seem to think the process is: Short stock -> Write mean things about company -> Stock goes down -> profit. Really though its more like: Do fundamental research on company -> Decide it’s wildly overvalued and/or fraudulent -> short stock -> write articles trying to convince people of your viewpoint -> stock goes down -> profit. You don’t risk your fund’s money on the bad risk/reward profile that is shorting unless you truly believe that it’s a bad stock.


You’re wondering why an investment firm would release a negative report about a company they have a short position on?


Selling dreams to dumb money. The way the great orater of Ontario Chamath Palpatine was promoting this 24×7 on CNBC, you knew he was trying to sell $hit to anyone watching. This thing has an annual revenue of less than 250k dollars. $250k. That’s half my wife’s salary. To top it all, after all the talk about how much he believed in this “one of a kind oppertunity to invest in space travel”, the biggest promoter of this thing sold a big chunk of his postion in December and March “to fight climate change” after he said a month earlier that he wouldn’t sell a share of it if he didn’t have to.