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Redwire (RDW) Stock Is Up, What You Need To Know

RDW Cover Image

What Happened?

Shares of aerospace and defense company Redwire (NYSE: RDW) jumped 4.7% in the morning session after the company announced it has opened a new rapid capabilities facility in Albuquerque, New Mexico, to advance the development of space-based defense systems. 

The new 15,000 square-foot facility, known as the Firestone Rapid Capabilities Facility, represents an expansion of Redwire's long-standing partnership with the Air Force Research Laboratory (AFRL). The site will support a wide range of capabilities for space, missile defense, and other emerging warfighting domains. Importantly, the facility will also support Redwire's work on a $45 million, five-year contract with the AFRL's Space Vehicles Directorate. This contract involves designing, developing, and testing prototype software and hardware for mission-critical technologies, signaling a strengthening of the company's role in national security applications.

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What Is The Market Telling Us

Redwire’s shares are extremely volatile and have had 96 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.

The previous big move we wrote about was 2 days ago when the stock dropped 2.9% as concerns about the health of the U.S. economy grew following a significant downward revision of job market data. The Labor Department reported that employers added 911,000 fewer jobs from April 2024 through March than initially estimated. These "benchmark revisions" are issued annually to more accurately account for new and defunct businesses. The report detailed that the leisure and hospitality sector added 176,000 fewer jobs, professional and business services 158,000 fewer, and retailers 126,000 fewer. This weaker-than-expected data has fueled investor anxiety, as it suggests businesses may be becoming more reluctant to hire amid economic uncertainty. The numbers issued are preliminary, with final revisions scheduled for February 2026. 

JPMorgan Chase CEO Jamie Dimon added that the U.S. economy is "weakening," though he stopped short of predicting a recession. "Whether it's on the way to recession or just weakening, I don't know," he said. Dimon's remarks are closely watched, given his influence as head of one of the nation's largest banks.

Redwire is down 49.2% since the beginning of the year, and at $8.66 per share, it is trading 66.3% below its 52-week high of $25.66 from February 2025. Investors who bought $1,000 worth of Redwire’s shares at the IPO in January 2021 would now be looking at an investment worth $831.41.

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