Space launch and systems company Rocket lab (NASDAQ:RKLB) is emblematic of the volatile nature of space exploration stocks. RKLB stock began trading on Nasdaq on August 25, after the company completed a reverse merger with Special Purpose Acquisition Company (SPAC) Vector Acquisition.
Admittedly, the actions took a long time to get started. They stayed close to the typical pre-$ 10 SPAC share price until early September. After the release of the first report on Rocket Lab’s results as a publicly traded company, RKLB stock climbed 110% in just over a week, reaching a high of $ 21.34 on September 9.
But as fast as stocks skyrocketed, they collapsed again on Earth, teaching stock hunters a hard lesson. RKLB stock fell about 35% in two weeks, falling below $ 14 per share.
As of this writing, the stock is around $ 12.35. Fortunately, some recent developments suggest that the company is on the right track, although the stock price is not yet.
Rocket Lab launch
While Rocket Lab is not expected to turn a profit for at least a few years, the company is increasing sales at an impressive rate. In addition, it fulfills its mission of rapidly advancing the science of space travel.
Rocket Lab is the leading manufacturer of small launchers. So far in 2021, the company has completed four missions of its small, reusable, orbital-class Electron rocket, bringing the total number of launches to date to 21. The Electron has also deployed 105 satellites into orbit.
Rocket Lab plans two more Electron launches next month to deploy satellites for geospatial and global surveillance company BlackSky technology (NYSE:BKSY).
Commenting on the multiple launch deal with BlackSky, Rocket Lab CEO Peter Beck said: BlackSky to grow its constellation and services with confidence.
As the company continues to launch the Electron, it is also working on the development of its medium-range neutron launcher. This next-generation rocket, which will be able to carry a payload of nearly 9 tonnes in low Earth orbit, is expected to begin launching in 2024.
End-to-end space solutions
Rocket Lab’s space missions will continue to grab the headlines, but there’s another positive development that has happened without much fanfare.
Last week, Rocket Lab completed its acquisition of space software company Advanced Solutions in a deal valued at $ 40 million. Advanced Solutions’ flight software focuses on mission simulation, component testing and navigation.
I see the deal as a win-win for both companies. Rocket Lab seeks to be a full-scale space services company, and Beck said the acquisition “will enhance our portfolio of space systems and provide improved end-to-end space solutions.”
Meanwhile, Advanced Solutions Founder and CEO John Cuseo said the two companies “complement each other very well” and will now have “more rocket fuel in the tank to play with” as they continue to operate. serve customers and innovate.
The result on RKLB Stock
RKLB stock has experienced major turbulence in recent months. And that shouldn’t change anytime soon. But we’re talking about a SPAC merger, space exploration, and a non-profit corporation. Anyone who expects a smooth ride is barking the wrong tree. That being said, the business is full of promise.
In the short term, the RKLB share could benefit from future launches. And investors who buy at today’s prices and hold for the long term could see their patience largely rewarded. Just be prepared for the roller coaster to continue.
At the date of publication, David Moadel did not hold (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
David Moadel provided compelling content – and sometimes crossed the line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga and (of course) InvestorPlace.com. He is also a chief analyst and market researcher for Portfolio Wealth Global and hosts the popular YouTube financial channel Looking at the Markets.