Rocket Lab Wins Share of a $46 Billion Defense Contract. How Big a Share? Well...
Rocket Lab's a winner, but perhaps not quite as big a winner as this news makes you think.
It's been two weeks now since Rocket Lab (NASDAQ: RKLB) announced the big news that it was included in a $46 billion (headline value) contract "to provide hypersonic test launch capability with its HASTE launch vehicle ... for the United States and the United Kingdom." For a tiny space company that did just $436 million in business over the last 12 months, you would expect that kinda news to have a big effect on the stock price. And it did.
Just perhaps not quite as big an effect as you would expect.
Over the two weeks since the contract was announced, Rocket Lab's stock price has jumped about 15%, most of which came on the day immediately following the announcement. It's a substantial advance for the space stock-turned-defense contractor, but perhaps not as big as a $46 billion contract win would ordinarily imply.
