A Good Week for Rocket Lab, Less So for Its Share Price
Still, the company’s first US launch bodes well for competition in the space business
A Rocket Lab Electron lifts off from Launch Complex 2 in Virginia on Jan. 24.
Photographer: Brady Kenniston/Rocket LabRocket Lab Inc. launched its first rocket from US soil this week, delivering a payload of small satellites to orbit for a paying customer. It was a moment of triumph for the Long Beach, California-based startup, expanding its reach from an existing launch site in New Zealand to its new facility in Virginia. And the success augurs well for a fledgling industry that includes a bevy of other startups.
For a brief flicker of a moment following Tuesday evening’s launch, investors seemed to sit up and take note. Shares jumped as much as 11% in early Wednesday trading after Stifel Financial Corp. analyst Erik Rasmussen — with a buy rating on the stock — said the launch marks an “important milestone” and puts Rocket Lab on a trajectory to meet the growing demand for low-earth orbit satellite launches.