Rocket Lab USA Soars as Massive Defense Deal Lands

Rocket Lab USA ( (RKLB) ) has risen by 8.37%. Read on to learn why.

Rocket Lab USA shares rose 8.37% over the past week, extending a powerful rally that has already made the stock one of the year’s standout performers. The latest leg higher came as traders poured into Rocket Lab’s options, with call buying outpacing puts and a “Buy” technical signal reinforcing the bullish tone. Despite the jump, 30‑day implied volatility has drifted below its 52‑week median at times, suggesting investors now expect somewhat smaller day‑to‑day swings even as trading activity remains intense.

The main catalyst behind the move has been a blockbuster defense win: Rocket Lab secured a prime contract from the U.S. Space Development Agency to design, build, operate, and sustain 18 missile‑defense satellites for the Tracking Layer Tranche 3 constellation. Valued at up to roughly $805–816 million, the deal is the largest in the company’s history and more than doubles the backlog in its Space Systems segment. Analysts say the award effectively elevates Rocket Lab into the ranks of emerging defense prime contractors, validating its vertically integrated model and strengthening its position as a challenger to long‑entrenched aerospace players.

Operational momentum is reinforcing this optimism. Rocket Lab recently completed its 21st successful Electron launch of the year, maintaining a 100% mission success rate and deepening ties with repeat customers such as Japan’s iQPS, underscoring steady demand for its launch and satellite services. Still, AI‑driven analysis from TipRanks’ Spark flags ongoing risks: high operating costs, heavy cash burn, and questions about profitability and valuation could eventually force the company to raise more capital. That tension—between rapid growth and financial strain—helps explain why options traders are also paying up for downside protection, even as Rocket Lab USA’s stock continues to climb.