tech
This rocket stock is testing a key level once again. Why Todd Gordon thinks it's a buy
The founder of Inside Edge Capital breaks down the technicals in this name.
TL;DR
- Rocket Lab's stock surged 20% on news of its $8 billion acquisition of Iridium Communications.
- Iridium offers low-bandwidth, mission-critical communication (voice, text, SOS, IoT data) using L-band frequencies, which are weather-proof.
- This is distinct from SpaceX's Starlink, which provides high-speed broadband internet.
- The acquisition creates a vertically integrated space company owning launch, satellite manufacturing, and global network services with paying customers.
- Rocket Lab gains 2.55 million subscribers and recurring revenue, complementing its existing backlog of $2.2 billion.
- The stock has repeatedly tested its rising 200-day moving average and bounced back, suggesting a potential buying opportunity.
- Rocket Lab and SpaceX are seen as the only two public, full-stack space companies, potentially moving as a pair.