VORB - Why Virgin Orbit Stock Rocketed Higher on Thursday
Shares of Virgin Orbit (NASDAQ: VORB) rocketed 3.9% higher in afternoon trading on the Nasdaq on Thursday, 2:30 p.m. ET. Virgin Orbit, Sir Richard Branson's latest space special-purpose acquisition company ( SPAC ), launches satellites to mid-air orbit via rockets deployed from a 747 airliner in flight,.
Virgin Orbit stock was responding to an announcement by NASA yesterday naming Virgin Orbit one of 12 companies that will help it put small satellites in orbit in years to come. Some of these companies, like fellow space SPAC stock Astra Space , are as small as Virgin Orbit; some are smaller, like start-up Phantom Space, and some are downright huge, like SpaceX and Boeing -and- Lockheed Martin joint venture -- United Launch Services.
NASA's contract was couched in the form of an indefinite delivery, indefinite quantity (IDIQ) defense contract that doesn't actually guarantee Virgin Orbit any revenue. But with a $300 million ceiling value and a five-year time span, chances are good that Virgin Orbit will win at least some of the money on offer as NASA chooses contractors to put its satellites into orbit over the next half-decade.
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Why Virgin Orbit Stock Rocketed Higher on Thursday