Virgin Galactic Holdings Inc.'s stock pulled back 5.6% Wednesday, with the shares looking set to snap their recent rally.
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The space company's stock ended Tuesday's session up 27.1%, fueled by plans announced last week for Virgin Galactic's first commercial flight.
Micah Walter-Range, president of space consulting firm Caelus Partners and a contributor to the S-Network Space Index, which is the index behind the Procure Space exchange-traded fund says the stock's performance is an indication of the unique nature of Virgin Galactic.
"The recent stock moves reflect the difficulty for investors trying to evaluate a one-of-a-kind company," he told MarketWatch via email. "The news about the upcoming first commercial flight is positive - the question is whether it's the beginning of a string of successes for the company or a milestone that will be followed by another multiyear lull."
Related: Virgin Galactic's stock pulls back after soaring on plans for first commercial flight
He added: "Right now, the market is trying to predict the most likely outcome and price accordingly."
The commercial flight, Galactic 01, will be a paid scientific-research flight in cooperation with the Italian air force. TD Cowen analyst Oliver Chen described the flight as an "out of this world innovation" in a note last month.
The flight window for Galactic 01 is June 27 to June 30, according to Virgin Galactic. A second commercial flight, Galactic 02, will follow in early August. The company expects that after the Galactic 02 mission, commercial spaceflights will take place monthly.
Related: Virgin Galactic's stock continues rally, boosted by plans for first commercial flight
"@VirginGalactic announces the start of commercial spaceflight service with #Galactic01 flight this month," Virgin Galactic founder Sir Richard Branson tweeted last week. "A huge well done to the team, so excited for our astronauts to inspire more people to look to the stars."
Last month, Virgin Galactic's VSS Unity spacecraft made its fully crewed return to space, the company's first crewed mission in almost two years.
The Unity 25 mission, which was crewed by two pilots and four Virgin Galactic mission specialists, marked an important milestone for the company. It was Virgin Galactic's first fully crewed spaceflight since July 2021, when VSS Unity carried founder Richard Branson and three company employees to space.
Related: Virgin Galactic shares rocket higher on plans for first commercial flight this month
Last month Virgin Galactic reported a deeper-than-expected first-quarter loss and revenue that missed analysts' estimates.
Virgin Galactic's stock had been pressured by the struggles of Branson's satellite-launch company, Virgin Orbit Holdings Inc. which filed for bankruptcy protection earlier this year and is now winding down operations and selling its assets.