Virgin Galactic (SPCE) shares fell over 24% on Friday, June 12, 2026. This decline coincided with the record-breaking initial public offering of Elon Musk's SpaceX (SPCX).
Analysts attribute the plunge to a capital rotation event. Investors previously purchased Virgin Galactic stock as a proxy for space sector exposure.
Following the SpaceX debut, investors took profits to reallocate funds into SPCX stock. This shift triggered a broader sell-off in related space equities.