Stocks

Why Rocket Lab Stock Popped Today

Rocket Lab (RKLB 6.89%) stock experienced a notable increase of 6.2% by 10:15 a.m. ET on Thursday, following the announcement of a significant contract win the previous night.

The Institute for Q-shu Pioneers of Space has engaged Rocket Lab for three additional Electron rocket launch missions.

Rocket Lab Aug. 23, 2023, reused engine launch.

Image source: Rocket Lab.

Rocket Lab + Q-shu: Better Together

Rocket Lab’s partnership with Japan’s Institute for Q-shu Pioneers of Space (iQPS) is a significant one. iQPS is working towards establishing a 36-satellite constellation of synthetic aperture radar (SAR) satellites that will orbit the Earth. Earlier this year, iQPS signed a contract for a series of four launch missions, and now they have committed to three more launches with Rocket Lab.

This brings the total to seven launches planned for iQPS from now until 2026, in addition to the four launches Rocket Lab has already completed for them this year.

Rocket Lab is aiming for “20-plus launches” in total this year, which represents at least a 25% increase in launch frequency compared to 2024, with the potential for nearly 100% growth.

Is Rocket Lab Stock a Buy?

While these launches are promising, they have not yet proven to be profitable for Rocket Lab. As of the last report, the rocket stock has incurred losses totaling $127 million through the first half of 2025, with analysts predicting total losses exceeding $218 million ($0.43 per share) by the end of the year.

However, there is hope on the horizon. If Rocket Lab successfully launches its inaugural Neutron rocket as planned, it could mark a turning point for the company. A successful ramp-up of Neutron launches next year could lead to reduced losses in 2026, and by 2027, Rocket Lab might achieve its first full-year profit.

Investors are keeping their fingers crossed for this momentum stock.

Rich Smith has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.