Virgin Galactic soars 20% after a successful test flight of its VSS Unity spaceship

• Virgin Galactic shares rose 20% in pre-market trading following a successful Saturday test flight.
• Social media chatter took off, with Redditors saying the company's shares would "go to the moon."
• Shares have largely declined this year after reaching an all-time highs in February.

Virgin Galactic shares jumped 20% early on Monday after the company conducted a successful test flight of the VSS unity spaceship over the weekend.

The VSS Unity took off from Spaceport America, New Mexico, with a three-person crew Saturday. Once it reached a speed of Mach 3, the mothership VMS Eve, released it, and the VSS Unity reached space at an altitude of 55.45 miles before returning to the spaceport, the company said in a Saturday press release.

"Today's flight showcased the inherent elegance and safety of our spaceflight system, while marking a major step forward for both Virgin Galactic and human spaceflight in New Mexico," Virgin Galactic Chief Executive Officer Michael Colglazier said in the statement, adding that the company is making "the dream of private space travel a reality."

Social media chatter around the commercial space-flight company took off following the flight. Virgin Galactic was the top stock in conversation among Reddit retail traders Monday with the flight being the most talked about subject, according to data from Hype Equity, which tracks pages like Wall Street Bets.

Across the Reddit forum, known for its role in the GameStop frenzy earlier this year, retail traders cheered.

"The space bullrun is here baby," one said, with an added rocketship emoji.

"To the moon," the common rallying cry among Wall Street Bets users pushing their favorites stocks, was used frequently following Saturday's flight.

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Prior to the flight, traders had been expressing mixed views. Some questioned whether the test run would actually happen, in light of past delays and failed attempts.

The company's rocket failed to reach outer space in December, and then in February, it delayed a test flight because of electromagnetic interference.

Following the review of all test data and inspection of the spaceship and mothership, the company said it plans to proceed with the next flight test milestone.

Shares of the Las Cruces, New Mexico-based space tourism company, which went public in October 2019 with a SPAC, have largely declined this year after the failed test flight and after the company's founder, Richard Branson, and its chairman Chamath Palihapitiya, sold their stakes in the business.

Retail traders on platforms such as Wall Street Bets drove the stock price to all-time highs in January and February, as it became a favorite on the subreddit amid high short-seller interest. Shares reached an all-time high of $52.41 in February, but gave back those gains in the following months, closing at $21.07 on May 21.

In pre-market trading Monday morning, shares traded about 20% higher at around $25.

In the Saturday press release, the company said the flight "gives Virgin Galactic's Future Astronaut customers a glimpse of what lies ahead."