Amazon.com (NASDAQ:AMZN) and Lockheed (NYSE:LMT) Join Hands to Build BE-4 Rocket Engines
America has taken a step further in space craft transporting an Orion spaceship made by Lockheed (NYSE:LMT) to the galaxy, on top of a missile constructed by Boeing. Lockheed Martin (NYSE:LMT) and Boeing come under a NASA contract as ULA and the test turned out to be a success. It was the first step of NASA in twenty years aiming towards putting Americans on Mars by 2030. Ever since America imposed sanctions against Russia, the latter has retaliated by imposing a threat to the American space program.
Russia would break off sourcing of its RD-180 rockets to U.S unless the country lifts the sanction. America has decided not to rely upon Russian RD-180 engines for its space program. Lockheed Martin (NYSE:LMT) would team with a US company to make advanced fluid oxygen/hydrocarbon rocket engines. Lockheed Martin (NYSE:LMT) made an announcement stating that it would team up with Amazon (NASDAQ:AMZN) owned Blue Origin.
This is a private space tech company and both these companies would work on liquid oxygen with liquefied gas and make new rocket engines. The engine would be called BE-4. Amazon (NASDAQ:AMZN) has stated that the engine would need finances less than what is required for the RD-180. But here’s the deal, it will take two BE-4 engines to match one RD-180. The reason we’re highlighting these points is because it’s great news for the investors.
Blue Origin has finally landed a deal which will lure a hoard of hungry investors trying to get in on the deal. The fact that the deal is directly or indirectly linked with NASA, investors are sniffing heavy revenue that is to be made for sure. The reason investors are happy about the country switching from Russian engines is because now America will have its own business going on when it comes to manufacturing rocket engines. This will be a lucrative prospect for investors that were initially interested in the prospects offered by such a business.
It won’t be considered unreliable anymore because it is not in the hands of the Russians. Now that America has got its own thing going, and the fact that Amazon (NASDAQ:AMZN) is a part of the deal, it will be easier for investors to put their trust in the project. GenCorp and SpaceX shareholders will be shocked to hear that Lockheed Martin (NYSE:LMT) opted for an infant company Blue Origin rather than the veterans. Well the reason is still the same; Blue Origin would offer more control, more dedication.
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It has claimed to make the engines in a much lesser price than the RD-180 engines and we need to see the bigger picture here. It’s a good decision for America and its great news for the domestic investors, especially those that are already linked with Amazon (NASDAQ:AMZN). It’s a benchmark for Amazon (NASDAQ:AMZN) too because this project would make the company one of the most lucrative companies on the stock market.