The contract marks Rocket Lab’s largest to date but failed to sustain gains amid broader tech sector pressure and balance sheet concerns.
Rocket Lab (RKLB) announced a $266 million multi-launch contract with the U.S. Space Force, its largest in history, covering 12 suborbital missile-defense launches with options for six more. The deal leverages the Pacific Spaceport Complex in Alaska for operations.
Shares initially rose 5% but erased gains by market close, reflecting investor focus on corporate balance sheet shifts rather than defense wins. RKLB has fallen over 55% from its May peak of $151, erasing $45 billion in market value, and is down 14.88% year-to-date after a 40% gain in the prior 12 months.
The selloff accelerated after Rocket Lab revealed an $8 billion cash-and-stock acquisition of Iridium Communications, raising liquidity concerns among institutional investors.