Rocket Lab Corporation experienced a significant surge in its stock during regular trading on Monday, December 22, 2025, leading to a closing price of $77.55, an increase of nearly 10%. This marks a continuation of its remarkable performance following a substantial contract announcement earlier in the week. However, the positive momentum did not sustain after hours, with the stock dropping to $72.67, reflecting a decline of over 6% on heavy trading volume.
Investors were initially energized by Rocket Lab’s announcement on Friday, December 19, regarding its largest contract to date, a prime award valued at $816 million from the U.S. Space Development Agency (SDA). This contract involves the design and manufacturing of 18 missiles warning and tracking satellites, signaling Rocket Lab’s growing stature not just as a launch provider but as a key player in national security. The contract includes an $806 million base award and up to $10.45 million in additional options.
The weekend saw Rocket Lab achieving another critical milestone by successfully completing its 21st Electron launch of the year without any mission failures, deploying a satellite for Japan’s iQPS. This successful execution led to increasing investor confidence, prompting a sharp rise in stock prices.
Analysts reacted positively as well, with notable adjustments to price targets; Stifel Securities raised its target from $75 to $85, attributing the upgrade directly to the SDA contract win. As a result, 67% of analysts now classify Rocket Lab stock as a “Buy,” with an average price target of $71, which is below the stock’s closing price, indicating rapid appreciation in value.
Despite the bullish atmosphere, the after-hours trading session unveiled some volatility, which can often follow significant intraday gains, particularly in stocks that attract high options activity. Reports of an insider selling 5,000 shares at $65 under a previously established plan added a layer of complexity, and investors noted a sale of over 230,000 shares by ARK funds, which may have contributed to the downward pressure.
Moving into the next trading session, several key factors are set to influence Rocket Lab’s stock performance. Investors will be keenly watching for premarket pricing trends to see if buyers re-enter at or above the previous breakout levels, as well as for any detailed updates regarding the SDA contract, particularly around revenue recognition and delivery schedules.
Additional considerations include broader space-policy developments and potential news from competitors, particularly as Rocket Lab prepares to introduce its medium-lift Neutron rocket in early 2026. With high implied volatility and busy options trading, significant price fluctuations are expected following minor announcements.
While the underlying fundamentals from recent contract awards and successful launches are promising for Rocket Lab, the stock’s performance will hinge on continued execution and the ability to meet market expectations.
