Rocket Companies (RKT) Surges 5.8% on Merger Optimism, Strong Q2 Earnings Fuel Rally

Rocket Companies (RKT) surged 5.8% in intraday trading on September 6, 2025, marking its highest price since September 2025, with a three-day rally of 18.07%. The stock’s momentum reflects optimism around its strategic merger with Mr. Cooper Group Inc., robust second-quarter performance, and favorable macroeconomic conditions.

The merger with Mr. Cooper, valued at $9.4 billion, has been a key driver of investor enthusiasm. Shareholders of Mr. Cooper approved the all-stock deal, which will combine Rocket’s digital mortgage platform with Mr. Cooper’s servicing portfolio of $2.1 trillion in mortgages. The transaction is expected to streamline operations, reduce costs, and expand Rocket’s market share in the U.S. mortgage sector. High tender offer participation rates and Rocket’s $9.1 billion in Q2 liquidity further underpin confidence in the integration process.

Financial results for the second quarter reinforced the stock’s upward trajectory. Rocket reported adjusted revenue of $1.34 billion, surpassing estimates, alongside a 13% year-over-year increase in net rate locks and 18% growth in closed loans. The company also raised Q3 revenue guidance to $1.6–$1.75 billion, outpacing market forecasts. These figures highlight Rocket’s ability to capitalize on demand for mortgage services, particularly as the Redfin acquisition enhances customer acquisition and cross-selling opportunities.

Market sentiment is further bolstered by expectations of U.S. Federal Reserve rate cuts, which could stimulate refinancing activity and homebuyer demand. Rocket’s business model benefits from lower interest rates, as reduced borrowing costs drive loan originations. Recent declines in bond yields have amplified optimism for mortgage-related stocks, with Rocket’s shares rising above analyst price targets and approaching a 52-week high.

Investor confidence in Rocket’s strategic direction is evident in the stock’s strong technical performance. A 6% surge on September 6 followed a 3.2% gain the prior day, with bullish patterns and positive momentum indicators signaling sustained demand. Despite short-term risks like overbought conditions, the merger’s progress and macroeconomic tailwinds position Rocket to maintain its upward momentum in the near term.