Virgin Galactic shares dive after Morgan Stanley and Credit Suisse downgrade the speculative stock

Chamath Palihapitiya
Olivia Michael | CNBC

Virgin Galactic recently took on the mantle from Tesla of the market's hottest speculative stock, with retail investors jumping in with both feet. But the bubble has popped this week in the space tourism play and losses are accelerating Thursday as two major Wall Street backers downgraded the shares.

More In Pro News and Analysis

CNBC ProThese surprises could change the story for the stock market in 2021, Credit Suisse says
CNBC ProWhat to expect from Ark Invest's coming 'ARKX' ETF, which ignited a rally for pure-play space stocks
CNBC ProStocks that investors hate like GameStop and Bed Bath & Beyond are booming in 2021