Is Rocket Lab USA Stock a Buy Now?
Over the past few decades, private companies have expanded the possibilities of space exploration and research. According to estimates from consultancy McKinsey, the space economy is projected to grow to $1.8 trillion by 2035.
With such substantial growth ahead and innovation across the industry, the space economy is emerging as a potentially significant investment opportunity.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
While companies like SpaceX lead the way, they remain private. Alternatives like Rocket Lab USA (NASDAQ: RKLB) are making waves in the small-satellite launch market, and it is the second-most utilized launch provider in the U.S.
The space company is expanding its services, including lunar exploration and satellite deployment, in response to increasing demand. Here's what investors should know about Rocket Lab and its long-term opportunity today.
Second in space launches in the U.S.
Rocket Lab USA, founded in 2017, has enjoyed strong demand for its services over the past several years. The company generated $436.2 million in revenue in 2024, representing a 78% increase from the previous year.
Strong growth has been driven by increasing demand, as evidenced by its rising backlog of orders, which now stands at $1.1 billion. That sizable figure indicates strong demand and provides some visibility into its future revenue generation. The company anticipates recognizing about 56% of this backlog as revenue over the next year.
Since its founding, Rocket Lab has completed 66 launch missions, including 16 in 2024, making it the No. 2 launch company in the U.S. However, it remains well behind SpaceX, which launched 132 rockets last year and has larger rockets and the ability to transport bigger payloads.
Rocket Lab aims to close this gap with its Neutron rocket, which it expects to launch sometime this year. The rocket represents a significant development for Rocket Lab since it will allow transport of larger payloads -- nearly 40 times larger than its Electron launch vehicle.
This capability is vital as demand for launching satellites and other cargo continues to grow. The larger rocket will also enable Rocket Lab to compete for larger contracts and achieve higher profits and margins per launch.
Pursuing every part of the space value chain
Besides its launch vehicles, Rocket Lab is carving out a niche in the space systems section of the broader space economy. For example, it acquired the German company Mynaric for $75 million. It provides laser optical- communications terminals for air, space, and mobile applications. By acquiring Mynaric, Rocket Lab can scale up production of optical communication terminals, which are crucial for satellite-to-satellite connectivity.
The German company was already a subcontractor for Rocket Lab, and the integration will give it greater control over its supply chain, allowing it to operate more efficiently.
CEO Peter Beck said that his company would pursue every part of the space value chain and that it was "closing in on the final step and most valuable part of the space economy: operating our own constellations to provide data and services from space."
Rocket Lab's finances
As an investor evaluating opportunities within the aerospace sector, it's crucial to analyze the current financial state of Rocket Lab. Delays in the launch of the Neutron rocket could hinder its near-term prospects and would likely weigh on the stock in the short term.
Furthermore, the company is grappling with sizable operational losses, reflecting its high cash burn, which may be a red flag for conservative investors seeking stability. Last year, revenue was $436.2 million while the cost of revenue and operating expenses soared to $626 million. As a result, the company had an operating loss of $190 million.
This trend continued in the first quarter, with an operating loss of $59 million on $122.5 million in revenue.
RKLB Revenue (Quarterly) data by YCharts.
Rocket Lab has expressed optimism about its path toward profitability. Analysts project the company could achieve positive cash flow by 2026 and earnings by 2027.
Is Rocket Lab USA right for you?
Rocket Lab's future is bright. Its backlog of orders is significant, and it has been included as part of the U.S. Space Force's $5.6 billion National Security Space Launch program. As part of this, Rocket Lab has been selected to compete for the Department of Defense's national security missions for its National Security Space Launch (NSSL) Phase 3 Lane 1 program. If chosen, its success here could lead to stable and potentially lucrative contracts over the long term.
As investors, we must strike a balance between risk and reward and understand what we are getting into. Rocket Lab USA is a fast-growing company in the emerging space economy. It is positioning itself not just as a launch company, but as one that also operates across the entire space value chain.
Rocket Lab's current financials may deter those seeking steady, reliable returns. However, for growth-focused investors, today could be an opportunity to get in at ground level with a company in an industry expected to experience significant growth in the years to come.
Should you invest $1,000 in Rocket Lab right now?
Before you buy stock in Rocket Lab, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rocket Lab wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!*
Now, it's worth noting Stock Advisor 's total average return is995% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
10 minutes ago
- CTV News
Billions of login credentials have been leaked online, Cybernews researchers say
NEW YORK — Researchers at cybersecurity outlet Cybernews say that billions of login credentials have been leaked and compiled into datasets online, giving criminals 'unprecedented access' to accounts consumers use each day. According to a report published this week, Cybernews researchers have recently discovered 30 exposed datasets that each contain a vast amount of login information — amounting to a total of 16 billion compromised credentials. That includes user passwords for a range of popular platforms including Google, Facebook and Apple. Sixteen billion is roughly double the amount of people on Earth today, signaling that impacted consumers may have had credentials for more than one account leaked. Cybernews notes that there are most certainly duplicates in the data and so 'it's impossible to tell how many people or accounts were actually exposed.' It's also important to note that the leaked login information doesn't span from a single source, such as one breach targeting a company. Instead, it appears that the data was stolen through multiple events over time, and then compiled and briefly exposed publicly, which is when Cybernews reports that its researchers discovered it. Various infostealers are most likely the culprit, Cybernews noted. Infostealers are a form of malicious software that breaches a victim's device or systems to take sensitive information. Many questions remain about these leaked credentials, including whose hands the login credentials are in now. But, as data breaches become more and more common in today's world, experts continue to stress the importance of maintaining key 'cyber hygiene.' If you're worried about your account data potentially being exposed in a recent breach, the first thing you can do is change your password — and avoid using the same or similar login credentials on multiple sites. If you find it too hard to memorize all your different passwords, consider a password manager or passkey. And also add multifactor authentication, which can serve as a second layer of verification through your phone, email or USB authenticator key. The Associated Press
CTV News
16 minutes ago
- CTV News
‘Massive innovation opportunity': Expert on stablecoins' regulatory framework
Jillian Friedman,Chief Operating Officer at Symbiotic, joins BNN Bloomberg to discuss the potential impact of the latest development on crypto.
Globe and Mail
19 minutes ago
- Globe and Mail
Why Amazon Could Be About To Breakout To $250
Inc. (NASDAQ: AMZN) has staged an impressive comeback since the dark days of early April. The tech giant is up more than 30% in barely more than two months and, as of Tuesday evening, was trading just under $215. That's only around a 10% move away from February's r ecord highs at the $240 level. For those of us on the sidelines, it's time to get excited because there are multiple signs that another leg higher is coming fast. Between bullish technical momentum, supportive analyst coverage, and a consistent tendency to rally into earnings, there are at least three solid reasons to think shares could be trading at $250 or more before the summer is out. The Technical Setup Is Bullish Since April, Amazon's chart has been showing higher highs and higher lows, a classic sign of a strong uptrend. Each dip has been shallow and swiftly bought up. Momentum is clearly on the bulls' side, and with the broader market in risk-on mode, that trend looks likely to continue. In recent sessions, the $215 level has emerged as a key resistance zone. It's where sellers have stepped in and checked the upward momentum, but they've been unable to reverse the overall trend. With the stock tightening into that level, we're now looking at a textbook breakout setup. A clean push through $215 could trigger a fast move up to retest the all-time highs at $242. But it may not stop there. In a market driven by momentum and narrative, the psychology of a breakout can be just as powerful as any catalyst. A break above all-time highs would confirm the bullish structure, clear the way for new upside targets, and likely trigger a wave of technical buying. If that happens, $250 becomes a very achievable near-term target. Analysts Are Getting Louder The analyst community is doing its part to support the bull case. Already this month, both JPMorgan Chase and Bank of America have reiterated their Overweight ratings and issued fresh price targets. JPMorgan raised its target to $240, while BofA raised its target to $248. Both calls reflect growing confidence that Amazon's underlying business remains robust, especially on the AWS side, and that it's well-positioned to continue outpacing expectations. These new targets align broadly with other analysts' bullish stance throughout the year, but they are far from the most optimistic. The team over at Tigress Financial reiterated their Buy rating last month and boosted their price target to a street-high $305, which implies more than 40% upside from current levels. Amazon Loves to Rally Into Earnings The final reason to be excited about the potential upside in the weeks ahead is Amazon's pattern of running into earnings. With the next report due in late July, this dynamic should help drive an imminent breakout. We saw this in the run-up to the May report when shares rallied sharply in the weeks before the results. The same pattern played out in February and again last November. That kind of consistency makes it a fairly reliable playbook, especially when combined with broader bullish market sentiment. This time around, the conditions are arguably even better. The major indices are once again flirting with fresh all-time highs, investor appetite for mega-cap tech is surging again, and Amazon's fundamentals look stronger than ever. If recent history is any guide, smart investors will start building or adding to positions starting now, ahead of the July report. When a stock with this kind of chart and analyst support also has a history of rallying to earnings (that it then beats), it's hard to stay on the sidelines. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
