Why Rocket Lab Stock Is Going to the Moon Today
Rocket Lab USA (NASDAQ: RKLB) has secured a U.S. government contract worth up to $515 million, a big boost to the space start-up. Investors are cheering the news, sending shares of Rocket Lab up 20% at the open on Friday.
Rocket Lab is one of several companies racing to benefit from the commercialization of space. The company was formed in 2006 and went public in 2021 via a special purpose acquisition company (SPAC), offering a full package to help government and commercial customers get into space and maintain operations once in orbit.
On Thursday, after markets closed, Rocket Lab said in a securities filing that it has entered into an agreement with a U.S. government to design, manufacture, deliver, and operate 18 space vehicles. Work will begin immediately, with the delivery of the "space vehicles" (presumably satellites) for launch slated for 2027. The deal also includes agreements to operate the satellites through 2030, with an option to operate them through 2033.
Source Fool.com
