Rocket Lab Soars 12% on $8 Billion Iridium Takeover, AST SpaceMobile and Planet Labs Rise 10%

Space stocks are catching a bid Monday morning after Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) unveiled a definitive agreement to acquire Iridium Communications (NASDAQ:IRDM) in a cash-and-stock deal carrying an enterprise value of approximately $8 billion. Rocket Lab stock is up 12% to $95 in early trading.

The deal validates consolidation across the satellite economy, and peers are riding the momentum. AST SpaceMobile (NASDAQ:ASTS) stock is up 10% to $78 and change, while Planet Labs (NYSE:PL) stock is up 10% to $29.90.

The rally cuts against a brutal stretch for the group. Rocket Lab stock had fallen 44% over the prior month, while Planet Labs stock was down 46% and AST SpaceMobile stock was down 45% over the same window. Today’s gains are starting to repair some of that damage.

Rocket Lab Buys Iridium in $8 Billion Vertical Integration Play

Under the terms, Iridium holders will receive $54 per share, consisting of $27 in cash plus Rocket Lab common stock based on an exchange ratio with a collar banded from $67.50 to $112.50. Both boards have unanimously approved the transaction, which is expected to close in mid-2027.

The strategic logic is easy to understand. Rocket Lab gets a profitable, recurring-revenue satellite communications network with more than 2.55 million subscribers across government, defense, aviation, and maritime markets, plus globally coordinated L-band spectrum and direct-to-device capabilities. Iridium generated $871.7 million in revenue and $495 million of operational EBITDA in 2025.

To fund the cash portion, Rocket Lab secured a $3.6 billion 364-day senior secured bridge term loan commitment from Deutsche Bank and Wells Fargo. CEO Sir Peter Beck declared it “a defining moment for the space industry.”

AST SpaceMobile Adds Its Own Catalyst

AST SpaceMobile has its own catalysts beyond the sector tape. The company said BlueBirds 8, 9 and 10 are now operational in orbit, with the next trio targeted to launch from Cape Canaveral in the first half of August. Production is now running through BlueBird 37.

AST SpaceMobile is targeting roughly 45 satellites in orbit by year-end and expects an orbital launch every one to two months on average this year. Institutional positioning into the constellation build-out appears to be supporting the shares.

Planet Labs Rides the Sector Tape

Planet Labs has no company-specific catalyst today. The Earth-observation operator is moving purely on sector enthusiasm as investors rotate back into space exposure following the Rocket Lab announcement. With Planet Labs stock still up 37% year to date, momentum traders appear willing to chase the bounce.

For context, the recent pullback in Rocket Lab put valuations within reach for buyers who had missed the original move. The deal gives bulls a renewed thesis: a fully vertically integrated launch, manufacturing, and communications operator with hard cash flow attached.

What to Watch

The risks are real in these space stocks. Rocket Lab still needs Iridium stockholder approval and regulatory approvals, and a mid-2027 close leaves plenty of time for deal spreads to widen if the political or financing backdrop sours. Polymarket data showed traders pricing the daily direction of RKLB stock at a 96% probability of an up close, with the weekly range concentrated in the $88 to $96 band.

Overall, these are volatile, speculative names with high betas. For example, Rocket Lab carries a beta of 2.499 and AST SpaceMobile sits at 2.634, so investors should consider keeping their position sizes modest. Investors can watch for whether today’s gains hold into the close and how Iridium’s deal spread settles relative to the $54-per-share offer.