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Rocket Lab stock set for 20% weekly gain after flurry of launch deals
Rocket Lab shares have added more than a quarter in value this week as the aerospace company inked new launch deals in the burgeoning space tech industry.
The stock was flat on Friday, but has surged over 20% this week. Shares were up nearly 50% over the last two weeks and traded near fresh highs on Friday.
The stock has nearly tripled since the start of the year.
On Friday, the company said it secured two launches with the Japan Aerospace Exploration Agency, scheduled for December and in 2026.
Earlier in the week, Rocket Lab announced a multi-launch agreement with Japanese space start Q-shu Pioneers of Space. That’s on top of four contracted missions.
Late last month, the company also secured 10 additional launch missions for Synspective, bringing its total with the Japanese satellite company to 21. The first is scheduled for later this month.
Rocket Lab’s extreme stock movement could also be a result of some short covering, which occurs when short sellers buy a security to close a position and mitigate losses. Short interest accounted for nearly 14% of Rocket Lab’s float at the end of September.
Investors have poured more money into the space sector this year as the government greenlights more contracts and funding.
The space sector, currently dominated by billionaire-backed ventures like Elon Musk’s SpaceX, has also seen a wave of initial public offerings this year from the likes of Firefly Aerospace, Voyager Technologies and Karman Holdings.
