Latest news with #RocketLab
Yahoo
3 hours 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
Globe and Mail
10 hours ago
- Business
- Globe and Mail
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
Yahoo
a day ago
- Business
- Yahoo
Is Increased Focus on Hypersonic Tech Opening New Doors for Rocket Lab?
In recent years, the rapid development and adoption of hypersonic technology across industries, from aerospace and defense to space exploration, have opened new growth avenues for Rocket Lab USA RKLB, a key player in hypersonic testing with its HASTE launch system. With commercial firms and government agencies ramping up investments in advanced hypersonic systems to bolster space access and national security, RKLB remains well-positioned to capitalize on this accelerating technological shift. Notably, Rocket Lab's HAEST (Hypersonic accelerator suborbital test electron) is a suborbital testbed launch vehicle that provides reliable, high-cadence flight test opportunities needed to boost hypersonic and suborbital system technology development. In April 2025, Rocket Lab secured a contract from Kratos Defense to conduct a full-scale hypersonic test flight for the U.S. Department of Defense. Additionally, RKLB's HASTE platform has been included in two major defense frameworks — the $46 billion Enterprise-Wide Agile Acquisition Contract with the U.S. Air Force and the UK Ministry of Defence's £1 billion ($1.3 billion) Hypersonic Technologies & Capability Development Framework. These programs allow Rocket Lab to compete for launch and engineering services in advancing hypersonic technologies. The inclusion across both U.S. and UK initiatives underscores the growing demand for HASTE in defense testing and is likely to significantly boost Rocket Lab's future revenue stream. While HASTE has not yet won any purely commercial contract, its demonstrated reliability and cadence in the defense sector may soon open doors to non-defense payload opportunities. As increased investment in hypersonic technology has become a global trend lately, with nations like the United States, the United Kingdom, and China significantly boosting funding for research and development in this tech, other stocks like Lockheed Martin LMT and RTX Corp. RTX are also indulging in advanced hypersonic technology developments. Notably, Lockheed Martin has been developing highly advanced hypersonic technology for the past 60 years. To this end, the company is currently working in partnership with DARPA, the U.S. Air Force, the U.S. Army, and the U.S. Navy to transition hypersonic concepts to operational reality. LMT's Conventional Prompt Strike is a hypersonic boost-glide missile currently under development, which boasts the capability to provide longer range, shorter flight times, and high survivability against enemy defenses. On the other hand, RTX is working across its business and domains to move advanced hypersonic capabilities from creation to testing and into the hands of warfighters at top speed. RTX is currently involved in the design of the Hypersonic Attack Cruise Missile, which leverages Northrop Grumman's scramjet propulsion to travel at more than five times the speed of sound and cover vast distances in minutes. The U.S. Air Force currently expects this missile to be operational by fiscal 2027. Shares of RKLB have surged 467.2% in the past year compared with the industry's 40.9% growth. Image Source: Zacks Investment Research The company's shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 17.85X compared with its industry's average of 9.65X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for RKLB's 2025 and 2026 earnings has improved over the past 60 days. 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 Lockheed Martin Corporation (LMT) : Free Stock Analysis Report RTX Corporation (RTX) : Free Stock Analysis Report Rocket Lab Corporation (RKLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Globe and Mail
a day ago
- Business
- Globe and Mail
Is Increased Focus on Hypersonic Tech Opening New Doors for Rocket Lab?
In recent years, the rapid development and adoption of hypersonic technology across industries, from aerospace and defense to space exploration, have opened new growth avenues for Rocket Lab USA RKLB, a key player in hypersonic testing with its HASTE launch system. With commercial firms and government agencies ramping up investments in advanced hypersonic systems to bolster space access and national security, RKLB remains well-positioned to capitalize on this accelerating technological shift. Notably, Rocket Lab's HAEST (Hypersonic accelerator suborbital test electron) is a suborbital testbed launch vehicle that provides reliable, high-cadence flight test opportunities needed to boost hypersonic and suborbital system technology development. In April 2025, Rocket Lab secured a contract from Kratos Defense to conduct a full-scale hypersonic test flight for the U.S. Department of Defense. Additionally, RKLB's HASTE platform has been included in two major defense frameworks — the $46 billion Enterprise-Wide Agile Acquisition Contract with the U.S. Air Force and the UK Ministry of Defence's £1 billion ($1.3 billion) Hypersonic Technologies & Capability Development Framework. These programs allow Rocket Lab to compete for launch and engineering services in advancing hypersonic technologies. The inclusion across both U.S. and UK initiatives underscores the growing demand for HASTE in defense testing and is likely to significantly boost Rocket Lab's future revenue stream. While HASTE has not yet won any purely commercial contract, its demonstrated reliability and cadence in the defense sector may soon open doors to non-defense payload opportunities. Other Stocks Focusing on Hypersonic As increased investment in hypersonic technology has become a global trend lately, with nations like the United States, the United Kingdom, and China significantly boosting funding for research and development in this tech, other stocks like Lockheed Martin LMT and RTX Corp. RTX are also indulging in advanced hypersonic technology developments. Notably, Lockheed Martin has been developing highly advanced hypersonic technology for the past 60 years. To this end, the company is currently working in partnership with DARPA, the U.S. Air Force, the U.S. Army, and the U.S. Navy to transition hypersonic concepts to operational reality. LMT's Conventional Prompt Strike is a hypersonic boost-glide missile currently under development, which boasts the capability to provide longer range, shorter flight times, and high survivability against enemy defenses. On the other hand, RTX is working across its business and domains to move advanced hypersonic capabilities from creation to testing and into the hands of warfighters at top speed. RTX is currently involved in the design of the Hypersonic Attack Cruise Missile, which leverages Northrop Grumman's scramjet propulsion to travel at more than five times the speed of sound and cover vast distances in minutes. The U.S. Air Force currently expects this missile to be operational by fiscal 2027. The Zacks Rundown for RKLB Shares of RKLB have surged 467.2% in the past year compared with the industry 's 40.9% growth. The company's shares are trading at a premium on a relative basis, with its forward 12-month Price/Sales being 17.85X compared with its industry's average of 9.65X. The Zacks Consensus Estimate for RKLB's 2025 and 2026 earnings has improved over the past 60 days. RKLB currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> 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 Lockheed Martin Corporation (LMT): Free Stock Analysis Report Rocket Lab Corporation (RKLB): Free Stock Analysis Report
Makkah Newspaper
2 days ago
- Business
- Makkah Newspaper
Rocket Lab Leading a Revolution in the Space Industry
Dear reader, the space industry is one of the most exciting and challenging fields in the world, requiring massive technological innovations and advanced research to make progress. Among the companies making significant strides in changing the space industry, "Rocket Lab" stands out as one of the key players. The company is contributing not only through modern space launch technologies but also through a strategic vision that aims to make space more accessible and scalable (The End-To-End Space Company). Founded in New Zealand in 2006 by engineer Peter Beck, Rocket Lab was driven by a deep passion for developing space technology and reducing the high costs of rocket launches. With this vision, the company succeeded in developing innovative solutions that made satellite launches easier and more cost-effective. Rocket Lab began its journey in space launches with small-sized rockets, which opened the door for smaller companies and even countries with limited budgets to access space. This was a significant departure from the larger companies that had dominated the broader space launch market, allowing Rocket Lab to fill a large gap in this sector. One of Rocket Lab's most notable innovations is the "Electron" rocket, a small rocket specifically designed for launching small satellites. This rocket is known for its high efficiency and cost-effectiveness, proving its ability to provide a reliable and affordable solution in the space launch market. The Electron rocket can carry payloads of up to 300 kilograms into low Earth orbit, a crucial feature for companies developing small satellites or conducting space research. Thanks to its unique design and continuous innovations, Rocket Lab has become one of the leading players in this field. Rocket Lab's contribution to the space industry doesn't stop with the Electron rocket. The company is also working towards making space more sustainable by enhancing its ability to reuse rockets. This is an important step towards reducing the environmental and financial costs associated with rocket launches. Rocket Lab's future plans include the development of fully reusable rockets, which could significantly reduce costs in the long term. This would expand the accessibility to space and strengthen its competitive position in the industry. In addition to its innovative rocket solutions, Rocket Lab is also advancing new technologies in the satellite sector. In recent years, the company has started launching a range of satellites aimed at various applications in industries such as communications, weather, and Earth observation. Thus, Rocket Lab's vision isn't limited to launching rockets; it's focused on creating a comprehensive solution by providing everything that companies and organizations need to access space. For example, in the future, Rocket Lab could become a primary supplier of satellites that improve communication infrastructure, provide accurate environmental data, or even develop space projects related to mineral and energy exploration. Along with its technological innovations, Rocket Lab continues to build strategic relationships with major space companies, further enhancing its market presence. For instance, the company has announced collaborations with NASA to carry out several space missions, including launching satellites and testing new technologies. This collaboration signals Rocket Lab's growing status as a trusted partner for key industry players, providing it with an opportunity to further develop its technologies and tools. Rocket Lab aims to maintain its leadership in the space industry by expanding its operations. The company is currently developing new rockets like the "Neutron" rocket, a larger and more powerful rocket that will enable Rocket Lab to enter the heavy-lift space launch market. This move will enhance its ability to compete with major companies such as SpaceX and Blue Origin. Rocket Lab will continue working towards its ambitious goal of making space more accessible and developing sustainable technology, which will have a positive impact on the long-term growth of the space sector. Dear reader, Rocket Lab is a strong competitor to SpaceX in the rocket launch sector, despite the differences in the scale of the projects each company handles. While SpaceX focuses on launching heavy rockets and carrying large payloads to space, Rocket Lab provides an innovative, cost-effective solution for small satellites and light payloads. Finally, Rocket Lab is quickly establishing itself as a one-stop space company, offering comprehensive solutions for all stages of space missions. From designing and launching small satellites with its Electron rocket to developing reusable rocket technology and expanding into satellite manufacturing, the company provides end-to-end services for businesses and governments looking to enter space. This integrated approach makes Rocket Lab a unique and reliable partner for space exploration and innovation.
