Why Rocket Lab Stock Skyrocketed Last Week

Rocket Lab announced an $8 billion acquisition of satellite operator Iridium Communications in a 50-50 cash and stock deal, causing the stock to surge 24%. The acquisition aims to expand Rocket Lab beyond launch services by gaining access to Iridium's 66 in-orbit satellites, spectrum, and 2.55 million subscribers. While the deal promises improved cash flows, analysts caution that Rocket Lab's lofty 82x sales valuation warrants a cautious approach.