Why Virgin Galactic Stock Took Off Friday

Shares of billionaire Sir Richard Branson's space tourism company Virgin Galactic Holdings (NYSE: SPCE) soared Friday morning on news that the Federal Aviation Administration (FAA) has approved the company for passenger space flights. As of 10:35 a.m. EDT, Virgin Galactic shares were about 25% higher. 

FAA approval for a full commercial license to operate with passengers follows the company's latest successful test flight in May. Its previous license allowed only test flights with crew (no passengers). Data from the May 22 test flight -- which reached a speed of Mach 3 and an altitude of 55.5 miles -- has been fully analyzed, the company said, and all flight objectives were achieved. Branson is reportedly hoping to beat fellow billionaire Jeff Bezos into space after Bezos announced he will be on the initial human flight of his Blue Origin space company. 

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Source Fool.com