One week ago, space rocket company Rocket Lab (NASDAQ: RKLB) suffered a tiny setback when a Collision On Launch Avoidance/Assessment (COLA) report warned of collision risk if it launched a set of Kineis satellites as it had planned.
Rocket Lab just waited until the space traffic jam cleared, however, and on Saturday, the "IoT4YouandMe" mission launched successfully, deploying five new satellites for customer Kineis, putting Rocket Lab just one rocket away from completing its contract with Kineis -- and one rocket short of having launched five dozen missions since Rocket Lab's creation.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Saturday's launch was the fourth of five planned missions for Kineis.
Mission success for our 59th Electron launch 🚀
-- Rocket Lab (@RocketLab) February 8, 2025
Five new satellites are now in orbit for @KineisIOT.
That's mission 4 of 5 to build out @KineisIOT's internet-of-things constellation. pic.twitter.com/TOMqH4MzdA
Rocket Lab stock is up 5.5% through 10:10 a.m. ET Monday morning in response to the news.
Mission success for Rocket Lab's biggest customer
France's Kineis operates Internet of Things (IoT) satellites, used to track and collect data from internet-connected machines all around the globe. With a planned constellation size of 25 and Rocket Lab being its only launcher, it's currently Rocket Lab's biggest customer in terms of number of satellites contracted for launch.
Bigger things ahead for Rocket Lab
Emphasis on "currently." Last week was also notable for Rocket Lab, you see, because of a different contract the company signed with Japan's Institute for Q-shu Pioneers of Space (iQPS). Already a Rocket Lab customer, iQPS signed a new contract with Rocket Lab last week for the launch of four one-satellite missions between now and 2026, toward the goal of building a 36-satellite constellation of synthetic aperture radar (SAR) satellites for the customer.
What's the upshot for Rocket Lab? The company's winning more contracts, and from bigger customers, as it proves its power at putting rockets in orbit. While I'm still pretty skeptical of Rocket Lab stock's valuation, it's hard to argue with its success as a space business.
Should you invest $1,000 in Rocket Lab USA right now?
Before you buy stock in Rocket Lab USA, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Lab USA wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $795,728!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of February 7, 2025
Rich Smith has positions in Rocket Lab USA. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.