Intuitive Machines (LUNR), a Houston-based space services provider, saw its stock price skyrocket on Tuesday, February 22, 2023, following the completion of its SPAC merger. The company, which trades under the ticker symbol LUNR on the NASDAQ, saw its shares surge by over 40% in early trading, reaching an all-time high of $34.12 per share.
The news of Intuitive Machines’ soaring stock price was widely covered by financial news outlets, including Space News, Seeking Alpha, and Simply Wall St. Many investors were left wondering what had caused the sudden surge in the company’s value.
According to Space News, the sharp increase in Intuitive Machines’ stock price was driven by news that the company had completed its merger with the special purpose acquisition company (SPAC) Archaea Capital Acquisition Corporation. The merger, which was announced in October 2022, was approved by Archaea shareholders on February 21, 2023, and officially closed the following day.
What happened with Intuitive Machines (LUNR) stock?
As part of the merger, Intuitive Machines received a cash infusion of $438 million, which the company plans to use to fund its ambitious plans for growth. Intuitive Machines is a leading provider of space services, including lunar lander and rover missions, in-space transportation and logistics, and Earth observation.
In a press release announcing the completion of the merger, Intuitive Machines CEO Steve Altemus said, “We are excited to have completed our merger with Archaea and to have access to the capital we need to accelerate our growth plans. Our mission is to make space more accessible, affordable, and sustainable, and this merger puts us in a strong position to do just that.”
The news of Intuitive Machines’ successful merger and the injection of capital that came with it appears to have reassured investors, who may have been concerned about the company’s recent financial performance. Simply Wall St. notes that Intuitive Machines has been growing its losses in recent years, reporting a net loss of $39.5 million in 2021, up from $17.8 million in 2020.
Despite these losses, many analysts and investors see Intuitive Machines as a promising investment opportunity in the rapidly growing space industry. Seeking Alpha notes that the company has a strong backlog of contracts, with over $300 million in revenue already booked for the next several years. Additionally, Intuitive Machines has a number of high-profile partnerships, including a collaboration with NASA to develop a robotic lunar lander and a partnership with SpaceX to provide cargo services to the International Space Station.
Overall, it appears that Intuitive Machines’ skyrocketing stock price is a reflection of growing investor optimism about the company’s potential for growth and success in the space industry. With the completion of its SPAC merger and a significant cash infusion, Intuitive Machines is well-positioned to continue developing innovative space services and technologies and to establish itself as a leading player in the space industry. While there are risks associated with investing in any emerging industry, it seems that many investors are willing to bet on Intuitive Machines’ bright future.