Terran Orbital Stock Just Rocketed 70%. Did It Deserve To?
Call it "the rocket blast heard round the world."
Last week, in an announcement that took the stock market completely by surprise, recent space SPAC and satellite manufacturer Terran Orbital Corporation (NYSE: LLAP) announced a deal to build some 300 satellites for wireless communications company Rivada Space Networks. The total value of the contract: $2.4 billion.
Suffice it to say that this sounds like a big contract for a start-up like Terran Orbital to win -- big enough to drive Terran Orbital's stock price up more than 70% in a single day, and for good reason. Over the past 12 months, Terran generated barely $73 million in sales (and according to data from S&P Global Market Intelligence, $171 million in losses). When you consider that all Terran Orbital stock in existence today has a total market capitalization of only $390 million, the size of Terran's new multi-billion-dollar contract looms even larger.
Source Fool.com
