Rocket Lab (RKLB) Stock Trades Up, Here Is Why

What Happened?

Shares of aerospace and defense company Rocket Lab (NASDAQ:RKLB) jumped 8.3% in the morning session after the company signed a multi-launch deal with the Japanese satellite company, the Institute for Q-shu Pioneers of Space (iQPS). 

The agreement included three dedicated missions using its Electron rocket, which will launch from New Zealand starting no earlier than 2026. This new contract solidified Rocket Lab's role as the primary launch provider for iQPS's commercial earth-imaging satellite constellation and brought the total number of scheduled launches for the company to seven. Each mission was set to carry a synthetic aperture radar (SAR) satellite. The news signaled growing business momentum for Rocket Lab, further supported by reports of another contract for 10 launches with the company Synspective.

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What Is The Market Telling Us

Rocket Lab’s shares are extremely volatile and have had 75 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 6 days ago when the stock gained 5% on the news that the company announced a major expansion of its partnership with Japanese satellite operator Synspective, securing its largest-ever single-customer order for 10 additional dedicated launches. 

This new agreement brought the total number of contracted missions for Synspective to 21. The deal followed a previous multi-launch contract from just months prior, in June 2024, highlighting a strong and growing business relationship. As the sole launch provider for all of Synspective's satellites currently in space, Rocket Lab reinforced its Electron rocket's leading position in the small satellite launch market. The launches were scheduled to take place from Rocket Lab's complex in New Zealand through the end of the decade.

Rocket Lab is up 160% since the beginning of the year, and at $64.88 per share, has set a new 52-week high.

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