Rocket Lab USA (RKLB), a top rival of Elon Musk’s SpaceX, has seen its stock surge to record highs following a successful double rocket launch. The space satellite services provider announced two successful launches on Monday within 24 hours of each other. Its “Ice AIS Baby” mission blasted off from its New Zealand launch site on Monday, deploying five satellites in low-earth orbit for Kineis, a France-based Internet of Things (IoT) constellation operator. The launch came less than 22 hours after the company sent up a rocket from its Virginia complex.
Founder and CEO Peter Beck said launching two missions in such a short period of time showed the company’s “unprecedented capability in the small launch market.” In response, Rocket Lab shares jumped after the opening bell Monday. With Monday’s gains, the stock has more than quadrupled in value since the start of the year.
Rocket Lab USA is also finalizing a multi-million-dollar grant from the government. Indeed, the company will receive a $23.9 million award from the Department of Commerce under the CHIPS and Science Act of 2022. The money is to be used to increase its compound semiconductor manufacturing capability and capacity at its Albuquerque, New Mexico plant.
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Rocket Lab Stock Surges: Can it Catch Up to Elon Musk’s SpaceX?
RKLB had a solid Q3 as reflected by its earnings report earlier this month. Rocket Lab maintained a robust 26.7% gross margin in Q3, suggesting strong pricing power and operational efficiency. With that gross margin, the company continues to invest heavily in new initiatives. Q3 revenue reached $104.81 million, a solid 55% jump from the previous year.
These numbers still lag behind its rival SpaceX, owned by Elon Musk. Musk’s companies all saw a surge in November thanks to the US election results. Following Donald Trump’s presidential nomination, he kept his promise of bringing in Musk to his team. Shares in Tesla and hype around Space X both rose, leaving their rivals in the dust.
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Now though, RKLB is beginning to catch up following its latest announcements. At press time, Rocket Lab stock is up over 100% in the past month, and 328% year-to-date. Shares touched $27 for the first time on Monday before trading opened.
