Rocket Lab shares surged by 65.5% in December, vastly outperforming major U.S. indices. The rally began in early December when reports emerged that SpaceX is preparing for a late-2026 IPO at a valuation near $1.5 trillion. That milestone drove investors to reappraise smaller space-tech names, lifting Rocket Lab alongside peers.

During December, Rocket Lab secured a new multi-year funding agreement with the Canadian Space Agency to advance Canada’s domestic launch capabilities. Shortly thereafter, the company completed its first mission under Japan’s Innovative Satellite Technology Demonstration Program for JAXA, with a second mission already scheduled. On December 18, Rocket Lab also fulfilled the STP-S30 launch for the U.S. Space Force and clinched a contract worth at least $806 million, with expansion options potentially taking the total value to about $1 billion.

In January, Rocket Lab stock advanced a further 21.6% as investors digested the December wins and speculated on upcoming rate cuts by the Federal Reserve. Two major brokerage firms reaffirmed buy ratings: one raised its 12-month target by roughly 13% following the Space Force award, and another lifted its projection by around 43%, citing the company’s growing manifest of missions and contract backlog as key drivers for medium-term growth.