Why Rocket Lab Stock Is Skyrocketing Today
Shares of quickly growing launch services and space systems leader Rocket Lab USA (NASDAQ: RKLB) have soared 16% higher as of 1 p.m. ET on Friday after the company landed its largest contract so far. The Space Development Agency awarded Rocket Lab with a firm fixed-price agreement potentially worth $805 million to deliver 18 missile warning, tracking, and defense space vehicles.
This is not just a significant financial win for the company, but also demonstrates its growing importance alongside traditional defense primes, as it was selected with Lockheed Martin, L3Harris Technologies, and Northrop Grumman for the task. The new deal comes just one day after Rocket Lab successfully launched the STP-300 mission for the U.S. Space Force five months ahead of schedule, which prompted shares to rise by roughly 10% yesterday.
To put the size of Rocket Lab's largest-yet, $805 million deal in context, the company's total revenue over the last year was only $555 million. Similarly, the company's backlog at the end of the third quarter was just $1.1 billion, so this contract is a game changer for the company -- and the market seems to agree.
Source Fool.com
