Rocket Lab Rises After Reports of Huge NASA Launch Deal
Rocket Lab shares are rising following reports that NASA is preparing to purchase billions of dollars worth of launch rockets, with the Neutron rocket mentioned among the alternatives.
Listen to this story
Rocket Lab shares rose following reports that NASA is preparing for a bulk purchase deal of rocket launches to support its $30 billion lunar base program.
The company's Neutron rocket was mentioned among the alternatives NASA is considering for the Falcon 9 rocket in the period following 2028, according to 3WS Markets and The Globe and Mail. This means that NASA is looking for alternatives to the Falcon 9 rocket before its availability declines after 2028.
Morning coverage had indicated a 4% to 5% rise, but trading data at 1:15 PM Eastern Time showed the stock up only 1.57% to $74.17, a notable retreat from its morning gains.
Rocket Lab holds an $816 million contract with the U.S. Space Development Agency and a backlog of approximately $2.36 billion. This retreat reflects investor caution regarding news that has not yet turned into signed contracts.
What Do These Terms Mean?
Neutron Rocket: A medium-lift rocket being developed by Rocket Lab, designed to launch larger payloads than its smaller Electron rocket.
Backlog: The value of signed contracts that have not yet been executed, used as an indicator of future revenue.
Space Development Agency: An arm of the U.S. military working on satellite networks for defense purposes.
Morning Gains: The rise recorded by a stock at the beginning of the trading session before the trend changes later.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
