Rocket Lab USA (NASDAQ:RKLB), best known for its Electron rocket and satellite launches, is making a big move to expand its role in the space industry. The company is acquiring Mynaric (MYNAY), a German firm specializing in laser-based satellite communicationa technology that's becoming essential for secure, high-speed data transmission between satellites.
Bringing Mynaric's expertise in-house strengthens Rocket Lab's position in national security and defense contracts. It also makes financial sense. Mynaric has faced production delays and financial struggles, allowing Rocket Lab to scoop it up for $75 millionfar less than the $300 million previously invested in the company. If certain revenue targets are met, an additional $75 million may be paid, but even at full price, it's a steal. The deal also gives Rocket Lab its first European base in Munich, further expanding its reach.
Stock Performance: A Wild Ride
Rocket Lab's stock has been all over the place. Over the past year, shares soared 350%, crushing the S&P 500's 9% gain. But in the past month, RKLB has dropped over 30%, signaling a steep near-term correction. Despite that, it's still up 150% in the past six months. Year to date, though, RKLB is down 26%, showing a rocky start to 2025.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.