Al Root

Shares of space technology start-up Rocket Lab soared early Friday after the company announced potential new business with the U.S. Space Force.

Rocket Lab stock rose 6.5% to $19.61 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were down 0.3% and 0.2%, respectively.

The news Thursday evening that the U.S. Space Force selected Rocket Lab to compete for its $5.6 billion National Security Space Launch program sent shares higher.

That's a lot for a company the size of Rocket Lab. Wall Street projects 2025 revenue of $582 million.

"Supporting assured access to space for the nation's most important missions has always been the goal with our Neutron rocket, and we're incredibly proud to [be] selected by the U.S. Space Force to demonstrate this commitment for the NSSL," said Rocket Lab CEO Peter Beck in a news release. "We can't wait to showcase Neutron as the important platform it will become for the Department of Defense."

Neutron is Rocket Labs' larger space-launch vehicle. It currently launches payloads on its Electron rocket, which can carry about 300 kilograms to space. Neutron will carry 13,000 kilograms.

Neutron's first launch is slated for later this year. It's intended to be partially reusable, like SpaceX rockets.

Reusability has dramatically lowered the costs to reach space, enabling new business models. SpaceX launches more than a rocket per week and has amassed a constellation of more than 7,000 satellites providing space-based Wi-Fi for millions of customers around the globe.

Elon Musk's rocket company is privately held but has been valued at some $350 billion. Rocket Lab hasn't achieve the scale or success of SpaceX. It's valued at closer to $10 billion.

Coming into Friday, Rocket Lab shares have risen almost 350% over the past 12 months.

Investors are excited about space.

Write to Al Root at allen.root@dowjones.com

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March 28, 2025 09:21 ET (13:21 GMT)

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