Why Voyager Technologies Stock Soared Today

Voyager Technologies (NYSE: VOYG) stock rocketed 8.1% through 11:15 a.m. ET Thursday on a double dose of good news. The biggest: President Trump announced Wednesday he wants to spend $1.5 trillion on defense.

"For the Good of our Country ... our Military Budget for the year 2027 should not be $1 Trillion Dollars, rather $1.5 Trillion Dollars ... This will allow us to build the 'Dream Military' that we have long been entitled to, and, more importantly, that will keep us SAFE and SECURE."

Image source: Getty Images.

One company, two businesses

As a company that gets more than half its revenue from defense contracts, Voyager stands to benefit from this budget. Voyager gets the rest of its revenue from its space business, though, and Voyager has more good news on that score:

This morning, NASA awarded Voyager a contract (of unspecified size) under its Create Hardware (HUNCH) program. HUNCH gives "high school students ... hands-on experience designing and fabricating hardware used by NASA."

The amount involved mayn't be substantial (it's small enough that Voyager didn't mention it). But "HUNCH builds a skilled pipeline of engineers, technicians and operators for civil, commercial and national-security missions," says Voyager. It probably puts Voyager at the top of the list for places to work for the students involved in HUNCH.

Is Voyager stock a buy?

Of the two items, I think the $1.5 trillion defense budget is most significant for Voyager, and the biggest reason he stock is up so much today.

Still new to investors after its recent IPO, and still finding its footing as a space stock, Voyager gets most of its money from defense, and its defense business is growing faster than space -- up 57% so far this year. A significant increase in defense spending can only be beneficial for Voyager stock.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.