One of the more interesting movers in today’s market is Sidus Space (NASDAQ:SIDU) after the company made a big announcement. Today, SIDU stock has soared 60% on another down day in the market. One of the few big winners in today’s market, SIDU stock has seen impressive volume, with more than 87 million shares trading hands at the time of writing, relative to average daily volume under 200,000 shares.
Indeed, there’s a lot for investors to like about Sidus Space relative to other growth stocks. As the company’s name suggests, Sidus is a company focused on the design, manufacturing and launch of commercial satellites. Given the private space race that’s going on right now, this is a company many have chosen as a top pick in this regard.
Of course, other space-related stocks haven’t performed well of late. This rising rate environment hasn’t been friendly to companies with a significant percentage of their revenues and earnings located in future years. Zooming out on Sidus’ stock chart, this has been the case.
That said, there is one big catalyst that’s driving shares of SIDU stock higher today. Let’s dive into what investors are watching today.
Why Is SIDU Stock Soaring Today?
Today, Sidus Space made a rather significant announcement the market is pricing in very bullishly. Specifically, the company announced it has signed a memorandum of understanding with Dhuvra Space.
Dhuvra Space is an intriguing global player with unique space-related technologies. Investors seem to think this could take Sidus Space on a positive trajectory. This memorandum of understanding provides for an expansion of an existing collaborative partnership to boost the companies’ technologies and services.
Two minds are often better than one, and that’s what investors are pricing in today. Thus, there’s a lot to like about the technological angle with this agreement.
However, there are also manufacturing and deployment benefits to this partnership investors seem to like. The extent to which this collaboration extension will boost both companies’ fundamentals remains to be seen. However, for now, the market appears to like what it sees with SIDU stock.
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On the date of publication, Chris MacDonald 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.