Rocket Lab’s stock increases as the firm joins the Space Force Launch Program

Key Takeaways

• Rocket Lab shares rose on Friday after the U.S. Space Force chose the space rocket manufacturer to join its $5.6billion National Security Space Launch program.
• Under the program, Rocket Lab and four other launch providers can compete for missions, including Elon Musk's SpaceX and Jeff Bezos' Blue Origin.
• Rocket Lab's stock has more than quadrupled in value over the last 12 months.

Rocket Lab USA shares (RKLB), which are owned by the U.S. Space Force, rose Friday after the company was selected to participate in the $5.6 billion National Security Space Launch program (NSSL).

Rocket Lab will be able to compete with four other providers, including Elon Musk’s SpaceX and Jeff Bezos Blue Origin. Stoke Space Technologies and United Launch Alliance are also part of the program.

To start, Rocket Lab said it received a $5 million task order to perform a capabilities assessment "that demonstrates the Company’s tailored approach to mission assurance for launches awarded through the NSSL program.”

Rocket Lab announced that it would use its Neutron vehicle for the program. Rocket Lab’s Founder and CEO Peter Beck announced that the Neutron launch is scheduled for later this year. Rocket Lab cannot wait to “showcase Neutron” as the important platform the Department of Defense will use.

Rocket Lab shares soared by over 7% during early trading on Friday before reversing most of their gains. The stock value has quadrupled within the last year.