The company booked another big launch contract.
Space company Rocket Lab USA (RKLB 9.91%) has inked its largest-ever launch agreement for its Electron rocket.
Investors are reacting by launching Rocket Lab shares higher, with the stock up 9% as of noon ET.
The rocket business is booming
Rocket Lab is one of a new breed of space stocks looking to capitalize on growing commercial and government demand to put satellites into orbit.
Overnight Monday, Rocket Lab announced a 10-launch deal with Japanese Earth observation company Synspective. The deal, announced at an event in Tokyo, is the largest Electron deal in company history.
The new deal builds on an existing relationship between the two companies, with Synspective booked and scheduled for two launches this year. The new agreement involves launches that will take place between 2025 and 2027.
Rocket Lab founder and CEO Peter Beck said:
We are honored that the Synspective team has once again entrusted Rocket Lab with the deployment of their constellation, and we’re proud to be their launch partner for another 10 missions, our largest launch agreement to date. Japan’s space industry is one of the fastest growing globally, and we’re excited to be enabling this growth through the unique collaboration of a U.S. rocket and a New Zealand launch site, delivering an unprecedented level of tailored access to orbit for Japanese small satellites.
Is Rocket Lab stock a buy?
One launch agreement won’t make or break Rocket Lab, but it is a good further endorsement of the company’s technology and its ability to reliably ferry cargo into space.
Rocket Lab has been on a roll of late, announcing a series of ever-larger satellite deals. But these are still early days for the company and the industry, and Rocket Lab is continuing to build out its full suite of satellite design, manufacture, and monitoring offerings to go along with launch services.
The modern space race has a lot of uncertainty, and investors buying in today need to understand that a lot can go wrong. But Rocket Lab is rapidly developing into a leader in this nascent field. Those who can handle volatility and understand the risks that come with blasting off into space might want to hop a ride on this rocket.
