Rocket Lab has moved to acquire Motiv Space Systems, a robotics firm whose technology has been deployed on NASA’s Mars missions, in a deal that gives the space contractor a fresh growth engine just as its share price stabilises following a bruising weekly sell-off. The stock edged up 1.2% on Thursday to €100.00, halting a five-day slide that had wiped out 21.4% of its value.
The acquisition is intended to strengthen Rocket Lab’s space systems division, which already accounts for the bulk of the company’s record $2.22 billion order book. Management plans to integrate Motiv’s robotic arms into future satellite projects, extending the unit’s reach beyond the historically volatile launch business. Analysts at Clear Street were quick to endorse the move. Greg Pendy reiterated his buy rating and lifted his price target sharply from $98 to $129, citing accelerating growth and a steady march towards profitability in the core operations.
Seeking Alpha also upgraded the stock to “buy” this week, arguing that Rocket Lab has evolved from a pure-play launch provider into a vertically integrated defence contractor. The firm’s selection for programmes such as the Space Based Interceptor Demonstration — a US Space Force effort to develop counter-hypersonic missile systems — underscores that pivot. High switching costs in the national security arena, the analysts noted, should protect Rocket Lab’s market share even as new competitors crowd into the medium-lift segment.
Behind the scenes, however, company insiders have been taking profits. Over the past three months executives including CFO Adam Spice and director Edward Frank sold shares worth roughly $67.7 million. The disposals come as no surprise given the stock’s nearly 54% year-to-date gain, but they add a layer of caution to an otherwise buoyant narrative.
Should investors sell immediately? Or is it worth buying Rocket Lab?
Financially, Rocket Lab remains in solid shape. The balance sheet shows cash and equivalents of about $1.3 billion, while first-quarter revenue surged 63% year-on-year to exceed $200 million. The path to sustained profitability hinges on the Neutron rocket, whose first flight has been pushed back to late 2026 after a structural flaw emerged during a pressure test in January. Analysts expect the company to turn the corner in fiscal 2027.
The broader sector mood has been soured by the upcoming initial public offering of SpaceX. The Elon Musk-led giant is scheduled to launch its roadshow on June 12 and is targeting a valuation of roughly $1.75 trillion. Morningstar analysts have warned that such a figure could represent massive overvaluation, prompting profit-taking across the industry. Competitors such as AST SpaceMobile have also felt the pressure, and Rocket Lab’s annualised 30-day volatility remains elevated at 131%.
On the technical side, the stock’s relative strength index now sits at 49.1, a neutral reading that suggests the recent sell-off has cooled. The share price trades 63% above its 200-day moving average of €61.35, keeping the long-term uptrend intact. Traders will keep a close eye on the SpaceX IPO roadshow, which runs until June 11, for further swings in sentiment.
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