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Virgin Orbit Cuts Staff by 85%

Virgin Orbit Cuts Staff by 85%

Today is Friday, March 31, 2023.

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Virgin Orbit Cuts Staff by 85%

Virgin Orbit (Nasdaq: VORB) is ceasing operations and shutting down, which caused the stock to plunge by 44.49% in after-hours trading on Thursday.

Details: The company said is cutting 85% of its workforce, which is about 675 employees. Virgin Orbit expects these layoffs to occur by Monday. These reductions will cost the company about $15 million.

Background: Virgin Orbit had been struggling for weeks to remain in business but had failed to raise additional funds. Two weeks ago, the company paused operations and furloughed most of its employees. Virgin Orbit has lost millions of dollars through its operations. The company also had a failed mission back in January. Without additional funding, Virgin Orbit can’t stay in business.

Final Thoughts: Virgin Orbit’s stock is down 96% since going public. It’s been an awful investment.

Notables

Notable Earnings Today: Advent Technologies Holdings (Nasdaq: ADN), Crown Holdings (NYSE: CCK), Consolidated Water (Nasdaq Global Select Market: CWCO).

Notable IPOs Today: Chanson International Holding Class A Ordinary Shares (Nasdaq: CHSN), Distoken Acquisition Corporation Ordinary Shares (Nasdaq: DIST), Apollomics Inc. Class A Ordinary Shares (Nasdaq: APLM), SGI Dynamic Tactical ETF (Nasdaq: DYTA), iShares Breakthrough Environmental Solutions ETF (Nasdaq: ETEC).

Notable Equity Crowdfunding Campaigns Ending Today: MicroMGx (Netcapital), Kazoo (Netcapital), Ouragins (Rialto Markets), Digital Direct IR (Netcapital), KMX Technologies (Netcapital), Wine Shop (Mainvest), Curtiss Motorcycle (Republic).

Notable Economic Events Today: Core PCE Price Index (8:30 a.m. ET), Personal Spending / Personal Income (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Arbitrum: The Biggest New Crypto of 2023

Photo by Shubham Dhage / Unsplash

The price of the cryptocurrency Arbitrum continues its hot streak with a 5% bounce on Thursday, even as other crypto prices dropped on the same day.

Background: Arbitrum is a scaling platform on the Ethereum network. Its governance token was officially released on March 23.

So: Ethereum is one of the most popular blockchains, but it can be slow to use. Arbitrum is trying to speed it up a bit, and investors are noticing.

Numbers: Since launching on March 23, Arbitrum is up over 7%.

Final Thoughts: It is too early to say that Arbitrum will be a long-term bet for investors. For the past week, it has performed well in price.

Nikokla’s Stock Offering Scares Investors

Nikola (Nasdaq: NKLA) dropped by 7.14% in after-hours trading on Thursday after the electric vehicle company announced a new public stock offering.

Details: Nikola’s public offering is for $100 million in common stock. Concurrently, Nikola announced that a mystery investor has agreed to buy up to $100 million in common stock. Net proceeds from both will be used for working capital and other general corporate purposes.

Stock Price: Nikola is down 86% in the last 12 months, including a 35% drop in the last 30 days.

Final Thoughts: Nikola really needs the cash. Sales are not growing and the company just made a CFO change. Nikola is trying to turn things around in 2023, but demand in the electric vehicle market is not good right now.

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