Why Intuitive Machines stock is headed for the moon today

shares of intuitive machine (NASDAQ:LUNR)a former space special purpose acquisition company (SPAC) that has been trading below its initial public offering (IPO) price for most of its public offering, was literally sent to the moon this morning.

Shares of the company’s small space stock rose an impressive 60.6% on the first trading day after the holidays, by 10:30 a.m. ET, buoyed by positive reports on the progress of the Nova-C class lunar module. is showing. The company aims to be the first US soft landing on the moon in more than 50 years, and the first successful landing by a private company on the moon.

To the moon, Alice!

Intuitive Machines’ Nova-C lander blasted into space aboard SpaceX’s Falcon 9 rocket just after midnight Thursday. It fine-tuned its course to the moon, began charging its batteries, and established communications with the company’s mission control center in Houston. According to the latest reports, the 14-foot-tall spacecraft was on course to land on the moon this coming Thursday, Feb. 22, at approximately 5:39 p.m. ET.

it’s not very As cool as Apollo-era manned moon landings are, it’s just the beginning. And for investors today, that appears to be more than enough to trigger a rally in Intuitive Machines stock.

Is Intuitive Machines stock a buy?

NASA is paying the company $118 million for this mission. Intuitive Machines also carries some payloads for commercial customers, which should add some extra revenue to the landing attempt. Those payments were enough to turn Intuitive Machines’ stock from a loss in 2022 to a profit last year.

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But one mission won’t make you a good stock. Don’t get me wrong. If Intuitive Machines sticks to the landing on Thursday, the company will immediately join a number of smaller companies looking to win both headlines and space contracts from NASA and other companies hoping to put payloads on the moon’s surface. This will likely propel it to pole position among space startups.

Still, the fact remains that analysts surveyed by S&P Global Market Intelligence expect Intuitive Machines to quickly slip into the red this year and continue to lose money for years as it prepares for future missions. . This stock may be a moonshot – and we wish them luck – but it’s also a highly speculative bet.

Should you invest $1,000 in Intuitive Machines right now?

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Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.

“Why Intuitive Machine Stocks Are Going to the Moon Today” was originally published by The Motley Fool