What's Going On with the Pop In Rocket Lab Stock?

Rocket Lab Corp. (NASDAQ:RKLB) shares are rising Thursday. The company won a spot on a Space Force contract vehicle worth up to $981 million. Rocket Lab stock is charging ahead with explosive momentum. What’s driving RKLB stock higher? Rocket Lab Wins Spot On Space Force’s NITE-STAR Contract Rocket Lab made the cut as one of 15 companies chosen for NITE-STAR, a Space Systems Command contract structure that allows multiple awardees and runs on an as-needed ordering basis, with a combined cap of $981 million across two separate five-year stretches, per a release the command put out July 31. The initiative centers on developing test and training resources aimed at readying Guardians to face off against sophisticated rival forces. Col. Craig Hackbarth, who directs the program for Space Systems Command, framed the selection as groundwork for quickly building out and weaving together those training capabilities throughout the command’s wider testing operations. Ark Invest Adds to its Rocket Lab Position This contract news lands on the heels of fresh buying interest from Wall Street. Cathie Wood’s Ark Invest scooped up 369,612 shares of Rocket Lab combined across three of its funds on Tuesday, split between 277,573 shares through ARK Innovation, 59,746 shares via ARK Autonomous Technology & Robotics and 22,293 shares through ARK Space & Defense Innovation. That buying activity coincided with Cantor Fitzgerald sticking with its Overweight call and $122 price target on the stock, pointing to Rocket Lab’s move to acquire Iridium Communications, a launch history now standing at 96 successful Electron missions and an upcoming Neutron rocket debut later this year as reasons for optimism. The firm went so far as to label the Neutron launch the company’s “most material catalyst,” suggesting the rocket has a real shot at going head-to-head with SpaceX’s Falcon 9. RKLB Shares Are Moving Higher RKLB Price Action: Rocket Lab shares were up 5.72% at $74.33 at the time of publication on Thursday, according to Benzinga Pro. Read Also: SpaceX Is Winding Down Falcon 9 as a Launch Crunch Looms: Can Rocket Lab's Neutron Fill the Gap? Image: Shutterstock