Maxar Technologies (NYSE:MAXR) stock is dropping Friday after gaining on news of a deal with NASA yesterday.
News of the deal with NASA yesterday saw Maxar Technologies stock increase by roughly 27% on Thursday. However, the stock is now falling just one day after the announcement of that deal.
The deal between Maxar Technologies and NASA will have the company working on the new lunar Gateway spacecraft. It will be designing and creating the spacecraft, as well as performing a test spaceflight of it.
Maxar Technologies won’t be working alone on the new spacecraft for NASA. Blue Origin and Draper will also be working alongside the company in the creation of the vehicle, as well as for testing.
“Our power and propulsion element partnership enables NASA to leverage Maxar’s commercial capabilities to cost-effectively expedite plans for sustainable exploration of the Moon, while also providing significant benefits to American industry,” Dan Jablonsky, CEO of Maxar Technologies, said in a statement. “As a valuable part of Maxar, our Space Solutions group serves the global commercial and U.S. government satellite market.”
The deal between Maxar Technologies and NASA has a value of $375 million. NASA may choose to acquire the spacecraft made by MAXR after a year of testing.
While Maxar Technologies is seeing its stock drop just one day after the announcement, it isn’t enough to completely undo the gains from yesterday. MAXR stock is currently down 8% as of noon Friday and is trading at around $8.10.
As of this writing, William White did not hold a position in any of the aforementioned securities.