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Yahoo
a day ago
- Business
- Yahoo
Better Growth Stock: Rocket Lab USA vs. Datadog
Both companies are attacking massive addressable markets with differentiated products, but one has a clearer path to sustained hypergrowth. Wall Street's obsession with artificial intelligence (AI) monitoring may be overshadowing a bigger opportunity in the physical infrastructure of the space economy. The cheaper valuation story here isn't the bargain it appears to be when you factor in competitive dynamics. 10 stocks we like better than Rocket Lab › Wall Street loves a good David versus Goliath story. But what happens when two Davids are battling entirely different giants? That's the compelling dynamic between Rocket Lab USA (NASDAQ: RKLB) and Datadog (NASDAQ: DDOG) -- two disruptive innovators, each aiming for a trillion-dollar opportunity from opposite ends of the tech frontier. Datadog is entrenched in the red-hot world of artificial intelligence (AI) infrastructure and observability. Rocket Lab is scaling up in the fast-emerging space economy, building the tools -- and rockets -- for a multiplanet future. AI may be grabbing headlines, but investors might be missing a more explosive opportunity just over the horizon. Which of these high-growth stocks is the better buy? Rocket Lab reported $123 million in first-quarter 2025 revenue, reflecting 32% year-over-year growth. The company has rapidly evolved from a launch provider into a vertically integrated space systems manufacturer. Its product portfolio now includes satellite buses, solar power systems, separation stages, and flight software. In 2023, Rocket Lab components were present on approximately 38% of all orbital missions, a testament to its growing influence in the commercial space supply chain. The upcoming Neutron rocket, designed for medium-lift launches and human-rated capability, could further position Rocket Lab as a key player in the next phase of orbital access. Datadog posted $762 million in first-quarter revenue, representing 25% year-over-year growth and beating analyst expectations. The observability platform now serves 3,770 customers generating more than $100,000 in annual recurring revenue. More importantly, the company's strategic push into AI observability is gaining traction. AI-native companies now account for 8.5% of total annual recurring revenue, up from just 3.5% a year ago. This surge highlights Datadog's growing relevance as AI workloads become central to enterprise infrastructure. This is where conventional wisdom starts to break down. Datadog operates in the observability market, which is projected to grow at a steady 12.2% annually through 2030. That's impressive, but Rocket Lab is targeting a much more explosive opportunity -- the deployment of over 10,000 satellites requiring launch services by decade's end. This will support a total addressable market expected to exceed $10 billion. SpaceX currently holds a dominant position, accounting for approximately 87% of global launch mass. However, Rocket Lab's upcoming Neutron rocket could shift the dynamics. With a target launch price between $50 million and $55 million, Neutron undercuts SpaceX's $67 million Falcon 9 and is purpose-built for medium-lift missions, a segment where meaningful competition is limited. If Rocket Lab delivers on schedule and performance, it could inject long-awaited price pressure into the market and capture a significant share of future demand. Rocket Lab's recent contract wins underscore growing customer confidence and repeat business. The company completed its tenth mission for BlackSky, deploying next-generation imaging satellites. It's also executing an eight-launch agreement with iQPS, supporting the buildout of a radar satellite constellation. On the defense front, Rocket Lab is conducting hypersonic test missions for the U.S. Department of Defense under the HASTE program. These contracts reflect sustained demand and a growing role in national and commercial space infrastructure. Datadog also demonstrates strong customer traction. Companies like AppFolio, Asana, and Twilio rely on its observability platform. Its recent acquisition of AI-focused start-up Metaplane positions the company to meet rising demand for data quality monitoring as enterprises expand their use of AI. With 83% of customers using two or more Datadog products, the company continues to execute its land-and-expand strategy with precision. Datadog faces intensifying competition from Amazon's AWS, Microsoft's Azure, and Alphabet's Google Cloud, each of which bundles observability tools directly into its platform. These hyperscalers can undercut Datadog on pricing while investing heavily in research and development, backed by massive cash flow. Rocket Lab's higher valuation reflects its scarcity value. There are only two viable Western commercial launch providers, and only Rocket Lab is publicly traded. As the Department of Defense prioritizes launch diversity and commercial satellite constellations continue to expand, Rocket Lab's position as the sole investable alternative to SpaceX becomes more strategically important. While both stocks deserve spots on growth investors' watch lists, Rocket Lab emerges as the superior growth investment. The company's 32% revenue growth outpaces Datadog's 25%, and its Neutron catalyst could transform it from a small-sat specialist into a genuine SpaceX competitor. Most importantly, Rocket Lab operates in a market with insurmountable barriers to entry. Datadog remains a solid growth story, but its path involves navigating an increasingly crowded field where every major cloud provider wants market share. In the battle between monitoring software and launching rockets, physics wins. Rocket Lab's combination of proven execution, massive market opportunity, and the upcoming Neutron launch make it the more compelling growth story -- even if Wall Street hasn't fully realized it yet. Before you buy stock in Rocket Lab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. George Budwell has positions in Microsoft and Rocket Lab. The Motley Fool has positions in and recommends Alphabet, Amazon, AppFolio, Datadog, Microsoft, Rocket Lab, and Twilio. The Motley Fool recommends Asana and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Better Growth Stock: Rocket Lab USA vs. Datadog was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Automotive
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than NuScale Power 10 Years From Now
NuScale Power has a market cap of $11 billion and generates close to zero in revenue with no products coming down the line. Rocket Lab is a fast-growing space flight company. Rivian Automotive is a disrupter in the electric vehicle space. 10 stocks we like better than Rivian Automotive › Nuclear power is all the rage right now. NuScale Power (NYSE: SMR) has a market cap of $11 billion, and its stock is up 360% in the last 12 months. Hype is growing for this resurgent energy solution to help match demand from data centers and artificial intelligence, which are growing like gangbusters. However, risks abound for investors in this pre-revenue stock with a market cap above $10 billion. Here are two other industrial stocks I predict will be worth more than NuScale Power 10 years from now. First up, we have Rocket Lab (NASDAQ: RKLB), which has around the same market cap as NuScale Power. The first advantage Rocket Lab has over NuScale Power is the fact that it actually generates revenue. That's not a high bar, but a clear distinction that needs to be made. It is a disruptive rocket launch and space systems company nipping on the heels of SpaceX's dominant market share in the industry. With the Electron rocket, Rocket Lab regularly performs trips for commercial customers and the United States government, executing 59 successful launches and having 31 planned missions currently in its pipeline. It is the only company besides SpaceX to consistently launch payload rockets for customers, which they pay a pretty penny for. Besides rocket launches, Rocket Lab is working to build the systems that companies actually launch into space. This includes communication systems, solar panels, and payload vehicles. Over the long term, it is aiming to build its own constellation of satellites, although what it aims to do with these satellites is unclear. In the future, Rocket Lab will debut its Neutron rocket system, which is much larger than the Electron, translating into higher revenue per launch. Today, the company generates $466 million in revenue. Over the next few years, Rocket Lab has a chance to greatly grow its sales with the debut of the Neutron, expansion of its space systems, and working through its current product backlog of over $1 billion. This will get the company on a trajectory to be a much larger stock than NuScale Power in 10 years. A second stock that will be larger than NuScale Power in 10 years is Rivian Automotive (NASDAQ: RIVN). This is a fallen angel in the electric vehicle space aiming to get its mojo back with new product launches. The stock is down 92% from all-time highs after its much-hyped initial public offering (IPO). Rivian debuted in the electric vehicle sector with premium trucks and SUVs. This limited its addressable market. Stagnating deliveries to customers have followed. Reviews say it has a great car, just not one for a wide audience that can afford a vehicle that costs upwards of $100,000. Next year, it is aiming to launch the R2, a mid-size SUV with a much more affordable cost of $45,000. This should greatly increase Rivian's annual deliveries to customers, which are currently hovering below 50,000. Without this scale, Rivian will struggle to generate positive cash flow. Free cash flow has improved in recent years but was negative $1.86 billion over the past 12 months. A scaled-up Rivian Automotive can grow its annual revenue from $5 billion to between $15 billion and $20 billion, and eventually higher over the long term, with vehicles that appeal to mass audiences. Profit margins will be slim, as with all automotive businesses, but this should lead to at least $1 billion in annual earnings (an approximate 5% margin at $20 billion in revenue), which will easily help it obtain a larger market cap than NuScale Power in 10 years. Being larger than NuScale Power in 10 years will be simple. It may look like a large company today with a market cap of over $11 billion, but this is a pre-revenue company. All of its revenue today is from contracts to plan on building its products; they come with no positive unit economics and can be considered a wash from costs. It generates zero dollars in revenue today. If its plans for nuclear energy development and its small modular reactors come along on schedule, it will not generate any revenue until 2030. Even so, it will probably be negligible revenue, given how its projects are essentially tests for the modular technology. It has not been proven yet that this technology can work economically or much better than large reactors. A previously committed project in Utah was canceled because of delays and cost overruns. NuScale Power talks a big game, but it keeps kicking the can down the road when it comes to actually building and deploying a product. I don't expect this to change over the next 10 years this is a dangerous stock to buy and one headed much lower in the years to come. For this reason, stocks such as Rivian and Rocket Lab are better bets and should be larger than NuScale Power in market capitalization 10 years from now. Before you buy stock in Rivian Automotive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rivian Automotive 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than NuScale Power 10 Years From Now was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Cantor Fitzgerald Sees 35% Upside in Rocket Lab Corporation (RKLB)
Rocket Lab Corporation (NASDAQ:RKLB) is among the best NASDAQ stocks under $50 to buy Analysts at Cantor Fitzgerald have reaffirmed their Overweight rating and $35.00 price target on Rocket Lab Corporation (NASDAQ:RKLB), implying a 35% upside from the current levels. This optimism stems from the investor meetings across Europe in the past week, where topics like Electron's launch cadence, Neutron rocket development, and the space systems segment were discussed. The firm noted that the company's recent initiatives speak volumes regarding its prospects. Rocket Lab Corporation (NASDAQ:RKLB) possesses a competitive edge against SpaceX, its latest acquisitions of Mynaric and Geost, as well as talks around President Trump's Golden Dome Initiative. Additionally, the successful execution of 66 space launches adds an extra layer of excellence. A launch pad atop a grassy hill, smoke filled sky from a successful voyage to space. With a market capitalization of $11.91 billion, Rocket Lab Corporation (NASDAQ:RKLB) was regarded by the leading investment firm during its assessment as an 'end-to-end space company that is best-positioned in the industry.' What's even more exciting is that the company is a potential beneficiary of the public disagreement between President Trump and Elon Musk. Rocket Lab Corporation (NASDAQ:RKLB) is a California-based company that provides launch services and space systems solutions. Founded in 2006, the core offerings of the company include launch services, spacecraft manufacturing and design, and spacecraft components. The giant is aimed at leveraging space for innovation. While we acknowledge the potential of RKLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
5 days ago
- Business
- Business Wire
Rocket Lab Adds Two New Missions to 2025 Electron Launch Manifest, Schedules First Launch in Four Days' Time
LONG BEACH, Calif.--(BUSINESS WIRE)--Rocket Lab Corporation (Nasdaq: RKLB) ('Rocket Lab' or 'the Company'), a global leader in launch services and space systems, today announced it has been selected to launch two dedicated missions on Electron for a confidential commercial customer, the first of which will launch in just four days' time - a demonstration of Rocket Lab's ability to execute against a rapid contract-to-launch timeline for responsive, dedicated access to space for satellite operators. Launching from Rocket Lab Launch Complex 1 in New Zealand, the first dedicated mission on Electron – named 'Symphony In The Stars' - will take place no earlier than June 20, 2025 to deploy a single spacecraft to a 650km circular Earth orbit. A second dedicated launch on Electron to meet those same mission requirements is scheduled for launch before the end of 2025. Rocket Lab Founder and CEO, Sir Peter Beck, says: 'These newly-added missions to our launch manifest represent everything that makes Electron a global launch leader: a tailored and responsive launch service that meets the mission requirements of satellite operators to get their satellites on orbit when they want, where they want, and on short notice. We're proud to be delivering an unbeatable launch service for this new customer on Electron and looking forward to the first launch this week.' These dedicated Electron launches demonstrate both the strength of Rocket Lab's responsive launch capabilities and its increasing launch cadence as the global leader in dedicated small launch. With demand for 20+ launches in 2025 and 100% mission success for all Electron launches this year, Electron is continually sought after by satellite operators across commercial, civil, and government missions, and remains on track for another record year of launches from Rocket Lab's Launch Complex 1 and Launch Complex 2 orbital launch sites in Mahia, New Zealand and Wallops Island, Virginia. 'Symphony In The Stars' launch information: About Rocket Lab Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We deliver reliable launch services, satellite manufacture, spacecraft components, and on-orbit management solutions that make it faster, easier, and more affordable to access space. Headquartered in Long Beach, California, Rocket Lab designs and manufactures the Electron small orbital launch vehicle, a family of flight-proven spacecraft, and the Company is developing the large Neutron launch vehicle for constellation deployment. Since its first orbital launch in January 2018, Rocket Lab's Electron launch vehicle has become the second most frequently launched U.S. rocket annually and has delivered more than 200 satellites to orbit for private and public sector organizations, enabling operations in national security, scientific research, space debris mitigation, Earth observation, climate monitoring, and communications. Rocket Lab's spacecraft have been selected to support NASA missions to the Moon and Mars, as well as the first private commercial mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand and a third launch pad in Virginia. Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward looking statements contained in Section 27A of the Securities Act of 1933, as amended (the 'Securities Act') and Section 21E of the Securities Exchange Act of 1934, as amended (the 'Exchange Act'). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy are forward-looking statements. The words 'believe,' 'may,' 'will,' 'estimate,' 'potential,' 'continue,' 'anticipate,' 'intend,' 'expect,' 'strategy,' 'future,' 'could,' 'would,' 'project,' 'plan,' 'target,' and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the 'SEC'), accessible on the SEC's website at and the Investor Relations section of our website at which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management's estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.
Yahoo
14-06-2025
- Business
- Yahoo
Rocket Lab Successfully Launches Its 66th Electron Rocket
Rocket Lab USA Inc. RKLB recently completed its 66th successful Electron rocket launch. The latest launch mission encompassed the deployment of the QPS-SAR-11 satellite into the Earth's mission is part of the contract that Rocket Lab secured in February 2025, from Japan-based Earth imaging company iQPS, marking one of its largest Electron launch agreements to date. This deal involves eight dedicated Electron launches, with six missions scheduled for 2025, out of which four are already completed, and two in successful missions reflect RKLB's proven expertise in launch services and further strengthen its footprint in the space industry. In the modern era of space exploration, factors like rapid technological advancements, the growing demand for satellite deployment, increasing commercial space activities and rising investments in space infrastructure are fueling the growth of the space launch services must have prompted the Grand View Research firm to estimate that the global space launch services market will witness a compound annual growth rate of 15.6% during the 2024-2030 time robust market growth prospects are expected to benefit companies like Rocket Lab. With its advanced Electron rocket and expanding capabilities in small satellite launches, the company is well-positioned to leverage the booming demand for frequent and cost-effective launches. It is also making strides in reusable rocket technology, which significantly reduces costs and improves launch capture further market shares, Rocket Lab is currently developing the Neutron rocket, designed for larger payloads and constellation deployments. This new product should further bolster RKLB's position in the market and fetch solid revenues. Other companies that are expected to enjoy the perks of the expanding global space launch services market have been discussed Grumman Corporation NOC: It is one of the key players in the space industry, providing launch vehicles and propulsion systems through its space systems division. The company's innovations in rocket technology and satellite deployment make it a significant beneficiary of the growing demand for space launch has a long-term (three to five years) earnings growth rate of 3.3%. The Zacks Consensus Estimate for NOC's 2025 sales indicates year-over-year growth of 2.8%.The Boeing Company BA and Lockheed Martin Corporation's LMT joint venture, United Launch Alliance ('ULA'), has been the United States' premier launch services provider since its establishment in 2006. The JV has successfully launched more than 150 Atlas and Delta rockets since has a long-term earnings growth rate of 18.1%, while that for Lockheed is pegged at 10.5%. The Zacks Consensus Estimates for BA and LMT's 2025 sales indicates year-over-year growth of 25.6 and 4.7%, respectively. Shares of RKLB have gained 501.3% in the past year compared with the industry's 42.2% growth. Image Source: Zacks Investment Research RKLB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA) : Free Stock Analysis Report Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Northrop Grumman Corporation (NOC) : Free Stock Analysis Report Rocket Lab Corporation (RKLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
