RKLB Stock Rises Overnight: Rocket Lab’s First 8 Satellites From $143M Globalstar Deal Reach Orbit

• The spacecraft are the first eight of 17 platforms covered by Rocket Lab’s $143 million MDA Space contract.
• All eight satellites are performing normally, generating power and undergoing commissioning.
• Each 500-kilogram spacecraft uses Rocket Lab’s vertically integrated Lightning platform.

Shares of Rocket Lab (RKLB) rose 1% overnight late Sunday after the company confirmed that the first eight satellite platforms built under its $143 million contract with MDA Space successfully reached orbit.

RKLB stock snapped a two-week winning streak, ending last week down 3% at $80.25. 

Rocket Lab Deploys 8 Globalstar Satellites 

The satellites launched from Cape Canaveral Space Force Station on Saturday. Rocket Lab has contacted all eight spacecraft and said they are performing normally and generating power. Commissioning is underway before they begin supporting Globalstar direct-to-device communications and Internet of Things (IoT) services.

The spacecraft represent the first batch of 17 platforms Rocket Lab agreed to build for MDA, the prime contractor for Globalstar’s constellation-replenishment program. Announced in 2022, the $143 million agreement was Rocket Lab’s largest spacecraft-bus order at the time. It also included options covering launch integration, dispensers, an operations control center and up to nine additional spacecraft.

The 500-kilogram satellites are customized versions of Rocket Lab’s Lightning platform. Built and tested in Long Beach, they incorporate the company’s in-house solar arrays, reaction wheels, software, avionics and telemetry, tracking and command radios.

Rocket Lab Expands Beyond Launch

CEO Peter Beck said that the deployment shows Rocket Lab’s ability to operate well beyond launch. “From spacecraft platform design, build, testing, and on-orbit operations, we’re executing across the entire mission lifecycle,” Beck said. He added that Rocket Lab’s vertically integrated manufacturing gives it greater control over cost and schedules, positioning the company to become “the partner of choice for the constellation economy.”

Its vertical integration is key to Rocket Lab’s bid to challenge traditional aerospace contractors. The company can manufacture major satellite components internally, while providing spacecraft design, production, software and orbital operations under one roof.

Defense Contracts Raise RKLB Stakes 

The successful deployment is also an important proof point for Rocket Lab’s growing defense business. Lightning is being produced for programs involving the U.S. Space Force and the Space Development Agency. In December, Rocket Lab secured an $816 million contract to build 18 missile-warning and tracking satellites for the SDA’s Tranche 3 Tracking Layer, marking its largest award to date.

Combined with an earlier $515 million SDA satellite contract, Rocket Lab has now received more than $1.3 billion in awards from the agency. Additional subsystem opportunities could take the value associated with its Tranche 3 work to $1 billion.

How Do Retail Traders Feel About RKLB?

On Stocktwits, retail sentiment for RKLB slipped to ‘bullish’ from ‘extremely bullish’ levels a day ago amid a 185% jump in 24-hour message volumes.

One user said, “$RKLB — The casino is about to open for the penny chasers. At times, all you have to do is relax, sit back, and let the market do its thing. This week is going to be very crucial.”

Another user said, “$RKLB a lot of accumulation here in last 2 weeks , look for a move to $120 soon. Bought in low 60s let’s ride the bull wave up”

RKLB stock jumped 87% over the past year. 

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