SPCE Stock Jumps 12% Pre-Market Today: Retail Pins Hope On The 'Only Space Tourism' Bet After Blue Origin Test Explosion

• Virgin Galactic resumed VSS Unity test flights this week to train crews and boost development of its next-generation Delta spacecraft. 
• Investor optimism around Virgin Galactic grew after Blue Origin’s New Glenn rocket exploded during testing.
• The company said a federal court granted preliminary approval of a settlement of shareholder lawsuits tied to disclosure and operational issues. 

Virgin Galactic Holdings (SPCE) stock surged in premarket on Friday as investors reacted to a combination of operational progress at the space tourism company and a major setback involving rival aerospace venture Blue Origin.

Virgin Galactic stock jumped over 12% in Friday’s premarket, extending a weekly rally that pushed the stock more than 39% higher, on track for its best week in a year.  

SPCE Advances VSS Unity Testing

This week, Virgin Galactic resumed flight activity with its VSS Unity spacecraft, while Amazon’s (AMZN) Blue Origin faced fallout from a launchpad explosion tied to its New Glenn rocket program. 

The contrasting developments reshaped investor sentiment around the commercial space sector. On Wednesday, Virgin said its VSS Unity spacecraft returned to the skies above Spaceport America for a series of glide flights. 

The company is using the aircraft as a live operational platform to prepare pilots, crews and mission systems for its upcoming Delta-class spacecraft. Virgin believes the testing program could help accelerate the launch timeline for its next-generation commercial vehicles, which remain scheduled for glide testing later in 2026 and for commercial operations afterward.

Blue Origin Faces Major Setback

Investor excitement around Virgin Galactic grew after Blue Origin’s New Glenn rocket exploded during a ground test at Cape Canaveral. 

The incident is expected to trigger regulatory scrutiny and could delay the company’s broader launch ambitions.

Market watchers feel the accident could give Virgin Galactic an advantage because its launch system works differently from the vertical rockets used by Blue Origin and others. Virgin Galactic’s spacecraft are first carried high into the sky by a larger aircraft before launching. 

SPCE Reaches Deal To Resolve Investor Litigation 

In a SEC filing on Thursday, Virgin said it is moving closer to resolving multiple shareholder derivative lawsuits after a federal court granted preliminary approval to a proposed settlement tied to allegations surrounding company disclosures and operational issues.

The space tourism company announced that its insurers would provide it with a $2.75 million payment as part of the proposed arrangement. Half of that amount would remain with the company after legal expenses and related obligations are addressed.

SPCE Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. Message volume increased by 225% in 24 hours. 

A user said, “With blue origine going nuts this is the only spce tourism out there.” 

Another user said, “without bezos....Virgin stays alone on the space tourism market.... short squeeze Is imminent...It Will be huge.”

SPCE stock has gained over 41% yearto-date. 

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