Shares of the space company Rocket Lab USA, specializing in delivery of cargoes to the Earth's orbit and competing with Elon Musk's SpaceX, rose in price in the moment at the trading on October 8 by 10% after the announcement of a new contract. The cost of securities reached $68.5, which became a new historical maximum.

However, the share of short positions on Rocket Lab exceeds 10% of the freely traded volume, GuruFocus warns. This means that a part of investors is waiting for a decrease in quotations. Over the last year, Rocket Lab shares have risen by almost 600%.

The company has agreed with Japanese satellite operator Institute for Q-shu Pioneers of Space (iQPS) on three separate launches using an Electron rocket, which will take place no earlier than 2026 from Launch Complex 1 in New Zealand. Under the contract, Rocket Lab will be the primary launch service provider for the iQPS commercial Earth observation satellite network.

Rocket Lab also said it is ramping up production capacity and launch frequency, with plans to complete more than 20 missions in 2025. The next launch for iQPS is scheduled for November.

The Electron rocket has completed more than 50 launches since 2017, making it the second most frequently used private light rocket in the world. SpaceX's Falcon 9 is in first place with a noticeable gap.

This article was AI-translated and verified by a human editor

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