LMT - Why Terran Orbital Stock Just Jumped 14%
Shares of satellite manufacturer Terran Orbital (NYSE: LLAP) , one of the more recent " space SPACs " (special purpose acquistion companies) to have come public in a SPAC-sponsored IPO only in March 2022, are getting a big boost on Monday after announcing that defense giant Lockheed Martin (NYSE: LMT) has invested $100 million in the company in exchange for convertible notes and warrants to buy stock in Terran.
As of 11 a.m. ET, shares of Terran are up 14%.
This is a pretty heavy bet Lockheed is placing on Terran, whose entire market capitalization was just over $300 million as recently as Friday. Just as significant, Lockheed Martin has tied up with Terran in what the companies are calling a "Strategic Cooperation Agreement" (SCA) that Terran says will allow it to pursue a wider variety of opportunities with Lockheed Martin for the duration of the SCA, i.e., through at least 2035.
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Why Terran Orbital Stock Just Jumped 14%