Why Intuitive Machines (LUNR) Stock is Skyrocketing After $5 billion NASA Contract Award
Why Intuitive Machines (LUNR) Stock is Skyrocketing After $5 billion NASA Contract Award
The stock held its 50% gain to more than $8 per share in early afternoon trading today
- Intuitive Machines (LUNR) stock is surging after the company received a government contract.
- The award from NASA is for nearly $5 billion, representing a big win.
- A pullback is possible after the move as investors look to take profits.
Intuitive Machines (LUNR)—the American space exploration company—rose 50% through mid-day trading today, holding gains from pre-market trading after the company secured a contract with the National Aeronautics and Space Administration (NASA).
The lucrative contract with NASA will support the Artemis program, a campaign to explore and reestablish a human presence on the Moon. Ultimately, Artemis has the goal of putting a base on the Moon to help facilitate the exploration of Mars.
Intuitive Machines could take in up to $4.82 billion over a five-year period, with the option for an additional five-year contract. The deployment of lunar relay satellites from Intuitive will aid the Artemis program’s communication and data transmission services.
NASA previously used Intuitive to make the Odysseus, a NOVA-C lunar lander. It touched down on the Moon earlier this year and marked the first lunar soft landing since the Apollo 17 mission in 1972, although it did lose power after the landing. It was the first lunar landing by a private company.
That previous success likely influenced NASA’s decision to award the contract to Intuitive, and it also signals it can continue to win contracts. The new contract also represents a significant increase in financial terms, with this one vastly larger than the previous contract, which was about $120 million.
Investors are obviously excited not just by this week’s news but the broadening investment theme driving space exploration through commercial means. While NASA continues to play a key role, privatization has quickly evolved into a larger and larger chunk of the industry, with many players proving they can not only achieve the same operational success as a purely government-funded system but also that they can do it more cost-effectively.
Trading LUNR after the news
LUNR held its 50% gain going into afternoon trading today, with prices rising to the highest levels traded since February at above $8 per share. Despite the enthusiasm, traders often like to short these extremely large moves, the reason being that it invites profit-taking from investors who have been in the trade for a while.
That said, the most notable level of potential support is near the $6 handle, which is marked by the May swing high and several failed intraday attempts over the past month. However, the March swing high at 7.31 could also come into play if the move fades.
.png?format=pjpg&auto=webp&quality=50&width=1000&disable=upscale)
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.