Astra (NASDAQ:ASTR) is one of the newest public players on the space exploration scene, having had its initial public offering (IPO) on July 1. The company, which has seen great expansion over the last few years, is exciting investors with its rapid innovations. Today, ASTR stock also happens to be one of the biggest winners on Wall Street. The bullish tear is the result of the company’s newest contract, seeing it work hand in hand with a significant government entity on multiple orbital spacecraft launches.
Aerospace company Astra was founded just five years ago by NASA expatriate Chris Kemp and partner Adam London, originally as Ventions. After multiple moves around California to accommodate the company’s rapid growth, it is finally settling in Alameda. The company has conducted multiple test flights of its orbital and sub-orbital launch vehicles and was a finalist in the DARPA Launch Challenge, although an error prevented it from being able to complete the challenge within the timeframe required.
ASTR Stock Booms on Department of Defense Contract News
ASTR stock is rising as the company sees what might be its most significant contract to date with the U.S. Department of Defense. The company is going to conduct its first commercial spacecraft launch. And it is not reaching this milestone alone. It will be helping a government institution reach a milestone as well.
That’s because the U.S. Space Force is the contractor behind the news. Space Force is hiring Astra through the Department of Defense for its very own commercial test flight. The contract actually covers two launches. The first launch will take place Aug. 27 at Astra’s test facility in Kodiak, Alaska. The second launch will take place at some point between the first launch and the end of the year.
News of this huge contract is helping to bolster the value of ASTR stock today. The stock is currently up 30%, with 10 times the company’s average trading volume making its way across the market today.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.