Stock Market Today, Dec. 22: Rocket Lab Surges on $816 Million Deal and Analyst Upgrade

Rocket Lab (NASDAQ:RKLB), a leading launch and space systems provider, closed Monday’s session at $77.55, up 10%. Rocket Lab IPO'd in 2020 and has grown 696% since going public. Trading volume reached 46 million shares, doubling its three-month average of 23 million shares.

Monday’s catalysts centered on a new $816 million U.S. defense satellite award and confirmation of a record 21 Electron launches this year.

How the markets moved today

The S&P 500 added 0.61% to finish at 6,876, while the Nasdaq Composite gained 0.5% to close at 23,429. Space-focused peer, Virgin Galactic rose 5.9% to $3.71, underscoring renewed interest in launch and space services operators.

What this means for investors

Rocket Lab has now soared 44% in its last three days of trading following its:

• $816 million deal with the Space Development Agency on Friday
• 21st successful Electron rocket launch on Sunday (100% success rate and most in a year)
• New price target of $85 from investment firm Stifel on Monday

The new deal nearly doubles Rocket Lab's $1.1 billion backlog, which prompted the upgrade from Stifel. In addition to this shorter-term news, the company plans to launch its new medium-lift Neutron rocket in the first half of the year. Success with this launch would place it more in line with its mega-peers SpaceX and Blue Origin. As Rocket Lab continues to demonstrate that it is more than just a launch company, I believe the growth stock remains a promising buy.

Josh Kohn-Lindquist has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.