Two Satellite Launches, New Govt Funding Propel Rocket Lab Stock: Retail Joins the Ride
By Stocktwits Inc | First Published Nov 25, 2024, 6:33 PM ISTIf pre-market gains hold, Rocket Lab shares could set a new all-time high at the open, following Friday's record-breaking close.
Rocket Lab USA Inc. ($RKLB) stock was up as much as 16% during Monday’s pre-market session after successfully launching two satellites in less than 24 hours over the weekend and securing a $23.9 million award from the U.S. Department of Commerce.
The investment, granted under the CHIPS Incentives Program, will fund the expansion of Rocket Lab’s Albuquerque, New Mexico facility, boosting semiconductor production by 50% over the next three years.
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According to the government’s release, the project is expected to create over 100 jobs.
Meanwhile, the “Ice AIS Baby” mission launched from New Zealand just 21 hours after a successful launch in Virginia, setting a record for Rocket Lab's fastest turnaround between launches.
The mission deployed five satellites for Kinéis, a French Internet-of-Things (IoT) constellation operator, into a 643 km Low Earth Orbit (LEO).
This marks Rocket Lab's 14th mission in 2024 and brings its total deployment of satellites to 203.
“Two successful launches less than 24 hours apart from pads in different hemispheres. That’s unprecedented capability in the small launch market…” said Rocket Lab Founder and CEO Peter Beck in a statement.
Sentiment around the stock jumped to ‘bullish’ from ‘bearish’ a day ago, along with an uptick in chatter to ‘normal’ from ‘low’.
Users on the platform celebrated the company’s new milestone, claiming that Elon Musk’s SpaceX is Rocket Lab’s only competition.
The aerospace manufacturer and launch service provider reported a loss of $0.10 per share for the third quarter last week. Its net loss widened to $51.93 million from $40.57 million during the same quarter last year.
However, the company’s revenue increased 55% year-on-year (YoY) to $104.81 million, leading to retail cheer.
Shares of Rocket Lab closed at an all-time high of $23.26 on Friday after Roth MKM raised its price target on the stock to $30 from $25 while keeping a 'Buy' rating. The brokerage cited the company's pending Neutron inaugural launch in mid-2025 as a "significant catalyst" for more deals to come in.
The surge in Rocket Lab's shares on Friday pushed Beck’s net worth past the $1 billion mark, according to Forbes’ estimates.
According to the report, the stock’s 360% surge so far in 2024 has brought Beck’s 10% stake in the company to $970 million.
In addition to that, the New Zealand-born founder is estimated to have another $65 million from selling shares of the company over the years.
If the pre-market gains hold, shares of Rocket Lab could open at a new all-time high.
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