Why Rocket Lab Skyrocketed 65.5% Last Month and Has Kept Soaring in 2026
Key Points
Rocket Lab announced multiple successful missions and new contracts last month.
The company announced a major new deal with the U.S. Space Force.
Rocket Lab has kept climbing in 2026 amid bullish momentum for growth stocks.
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Rocket Lab (NASDAQ: RKLB) closed out 2025's trading with another month of huge gains. The company's share price surged 65.5% across the stretch. Meanwhile, the S&P 500 index was roughly flat, and the Nasdaq Composite index declined 0.5%.
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Rocket Lab stock soared in a jam-packed December
Rocket Lab investors saw a ton of relevant news in December. The stock started climbing early in the month in conjunction with news that SpaceX is gearing up for an initial public offering (IPO) late in 2026. News of a potential IPO for SpaceX helped lift valuations for many other space-tech stocks, and Rocket Lab benefited from the trend.
On the heels of the SpaceX news, Rocket Lab stock got a boost from news that the company had been awarded a new funding deal through the Canadian Space Agency (CSA). The new contract is aimed at bolstering Canada's domestic space capabilities.
Rocket Lab followed the Canada contract win with news that it had completed its first mission for the Japan Aerospace Exploration Agency (JAXA). The mission was launched from New Zealand and represented the first of two scheduled missions for JAXA's Innovative Satellite Technology Demonstration Program.
On Dec. 18, Rocket Lab announced that it had successfully completed the launch of the STP-S30 mission for the U.S. Space Force. Following the successful launch, Rocket Lab announced that it had been awarded a new contract with Space Force worth at least $806 million. The contract award also came with expansion options worth approximately $10.5 million and the potential for additional add-on services that could bring the total value of the deal to roughly $1 billion.
Following the Space Force wins, Stifel published new coverage on the stock. The firm's analysts maintained a buy rating on Rocket Lab and increased their one-year price target from $75 per share to $85 per share. Needham also raised its rating on Rocket Lab stock later in the month, raising its one-year price target from $63 per share to $90 per share and maintaining a buy rating on the stock.
Why Rocket Lab stock has kept rising in 2026
Rocket Lab stock has kept surging higher in January's trading. The stock is currently up 21.6% in the month as of this writing. While there hasn't been any major fresh news for the company, investors have continued to pour into the stock following the company's big wins last month. Investors have also been ramping up bets that the Federal Reserve could deliver more interest rate cuts this year than previously expected.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
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