Rocket Lab USA (Nasdaq: RKLB) was selected to tend to bid for billions of future launches provided by the United States and the United Kingdom.
Investors are excited by the opportunities that these selections create, sending shares to Rocket Lab up to 15% Tuesday morning and up 9% at 11:30 a.m.
Rocket Lab is one of the many space stocks emerge in recent years, and society has undoubtedly done more than anyone in this class to establish itself as a reliable operator. Launch customers, especially government customers, do not want to do business with unproven start-ups.
The last selection of the company should help its progress. Rocket Lab said it was selected to provide hypersonic test launch capacities through separate programs from the air force ministry and the United Kingdom. The scope of the programs is wide: Air Force has up to $ 46 billion to spend until 2031, and the United Kingdom has $ 1.3 billion to allocate.
To be clear, the announcement does not mean that Rocket Lab has received all of this income. What it means is that Rocket Lab was authorized to bid on the work.
For all the progress that Rocket Lab has made in recent years, it does not correspond to the gains made by the company’s share. Rocket Lab shares have more than doubled in the past six months (and at some point, have increased by more than 200%) while the excitation of investors for the company and its potential have increased.
The excitement is justified, but the real company will take years to keep its promise. Actions of more than 20 times more than 20 times, Rocket Lab actions cannot hardly be called a good deal. For those who want to participate in the new space race, Rocket Lab is among the most attractive investment candidates. But those who buy today should expect volatility and keep this stock at high prices to a small part of a Well diverse wallet.
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