What Happened?

Shares of global satellite communications provider Viasat (NASDAQ: VSAT) jumped 4.2% in the morning session after the company, along with Intelsat General Communications, secured a major contract from the U.S. Space Force. 

The combined firm-fixed-price contract is worth up to $437.7 million and is for the Protected Tactical Satellite-Global (PTS-G) program, which involves providing space vehicles. This significant government award sent shares to a seven-year high, reflecting strong investor optimism about the company's future revenue. The news provided a boost to the stock ahead of its scheduled earnings report.

After the initial pop, the shares cooled down to $84.25, up 3.5% from the previous close.

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What Is The Market Telling Us

Viasat’s shares are extremely volatile and have had 68 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Viasat is up 124% since the beginning of the year, and at $84.25 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Viasat’s shares 5 years ago would now be looking at an investment worth $1,588.

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