Latest news with #RocketLabUSA
Yahoo
5 hours ago
- Business
- Yahoo
Here's Why Rocket Lab Stock Is a Buy Before August
Shares of the upstart rocket builder have lifted off over the past year. The company is ramping up its launches and expanding its ecosystem. The stock still looks reasonably valued relative to its growth potential. 10 stocks we like better than Rocket Lab › Rocket Lab USA's (NASDAQ: RKLB) stock skyrocketed nearly 470% over the past 12 months. The maker of reusable orbital rockets impressed investors with its successful Electron launches, fresh contracts, and the upcoming launches for its bigger Neutron rocket. Investors might be reluctant to buy Rocket Lab's stock after that monstrous rally. However, I think it's still worth buying ahead of its next earnings report in August for five simple reasons. Rocket Lab's Electron rocket can carry small payloads of up to 300 kilograms into space. It's been successfully launched 66 times and used to deploy 227 satellites. It achieved six Electron launches in 2021, nine launches in 2022, 10 launches in 2023, and 16 launches in 2024. It's also launched seven Electron rockets in 2025 so far. Its big customers include NASA, the U.S. Space Force, the Swedish National Space Agency, Capella Space, and BlackSky Technology. Annual revenue rose more than sevenfold from $62 million in 2021 to $436 million in 2024 as it ramped up those launches. Rocket Lab's second rocket, the Neutron, will have a higher maximum capacity of 13,000 kilograms to low-Earth orbit. It's scheduled to arrive in the second half of 2025, and it's already secured new Neutron contracts from NASA and a leading satellite network operator. Unlike the Electron, which carved out a comfortable niche with its small-lift launchers and doesn't face too many competitors, the Neutron will compete more aggressively against SpaceX's Falcon 9, which has a maximum capacity of roughly 22,800 kilograms. The growing rift between the Trump administration and Elon Musk -- as well as SpaceX's recent delays and failed launches -- might also drive more government contracts to Rocket Lab over the next few years. Rocket Lab won't break even anytime soon, but its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved from negative 70% in 2021 to negative 22% in 2024. Those improvements were driven by more launches, higher average launch prices, its increased in-house manufacturing, and tighter spending. Over the past year, Rocket Lab shipped two new research satellites for NASA, secured an additional study contract for NASA's next Mars mission, and agreed to deploy a constellation of 25 satellites for Kinéis, a global Internet of Things (IoT) connectivity provider. It signed a multi-year Electron launch contract with Japan's Institute for Q-shu Pioneers of Space (iQPS) while advancing its projects with the U.S. government. Rocket Lab also joined a team led by Kratos Defense & Security Solutions to test hypersonic flights, signed a new satellite launch contract with Airbus, and agreed to provide support for Firefly Aerospace's upcoming lunar mission. It recently agreed to buy Mynaric, a leading laser communications provider; and Geost, which develops satellite sensors for the U.S. military, to further expand its ecosystem. All of these catalysts could help Rocket Lab keep pace with SpaceX, which launched 138 Falcon rockets last year, as the domestic space race heats up. From 2024 to 2027, analysts expect Rocket Lab's revenue to nearly triple from $436 million to $1.2 billion. They also expect its adjusted EBITDA to turn positive in 2026 and more than triple to $202 million in 2027. With an enterprise value of $13.2 billion, it might not seem cheap at 11 times its projected sales for 2027. Nevertheless, those valuations seem reasonable if Rocket Lab eventually becomes as big as SpaceX, which generated an estimated $13 billion-$14 billion in revenue in 2024. So if you believe Rocket Lab will keep growing over the next decade, it might be smart to accumulate its high-flying stock before its next earnings report. 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy. Here's Why Rocket Lab Stock Is a Buy Before August was originally published by The Motley Fool 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
Yahoo
3 days 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
13-06-2025
- Business
- Yahoo
Mixed options sentiment in Rocket Lab USA with shares down 2.12%
Mixed options sentiment in Rocket Lab USA (RKLB), with shares down 58c near $26.78. Options volume relatively light with 30k contracts traded and calls leading puts for a put/call ratio of 0.38, compared to a typical level near 0.27. Implied volatility (IV30) is higher by 1.1 points near 70.18,in the bottom quartile of the past year, suggesting an expected daily move of $1.18. Put-call skew steepened, indicating increased demand for downside protection. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on RKLB: Disclaimer & DisclosureReport an Issue Option traders moderately bearish in Rocket Lab USA with shares down 8.08% Rocket Lab price target raised to $35 from $29 at Cantor Fitzgerald Rocket Lab USA Announces 2025 Annual Meeting Date Tesla up 4% after Trump says he wishes CEO Musk 'well' Bullish flow in Rocket Lab USA with shares up 8.64% 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
Yahoo
05-06-2025
- Business
- Yahoo
Is Rocket Lab a High-Risk, High-Reward Opportunity?
Rocket Lab has established itself as a highflier among the group of young companies trying to win the new space race. Its complete offering looks like the right model to win business from non-space customers who are interested in establishing a presence in orbit. Rocket Lab's stock is highly valued and has been volatile in the past, meaning investors should keep their safety belts fastened if they are going along for the ride. 10 stocks we like better than Rocket Lab USA › Few stocks have captured the imagination like Rocket Lab (NASDAQ: RKLB), a leader among a crop of young companies racing to turn the promise of the space economy into a reality. Rocket Lab went public in late 2020 as part of a special purpose acquisition company (SPAC) deal, and its journey since then has been full of volatility. But investors who have been along for the ride since day one are currently sitting on a 175% gain. Is it too late for investors to hop aboard this rocket ship, or can Rocket Lab still fly higher? Here's a look at the investment case for Rocket Lab today. Rocket Lab has been a disruptor from the beginning. Founded by industry outsider Peter Beck, a New Zealander who dropped out of college and was turned away from NASA and space companies when he sought internship opportunities, Rocket Lab has built a solid track record launching small satellites into orbit. The company has built up a lot of credibility in the industry, winning the right to compete for billions in future U.S. government launches earlier this year. But Rocket Lab aims to be much more than just a launch vehicle. Beck is attempting to build a "one-stop shop" for customers who want a presence in space but don't want to hire aerospace engineers, offering services that design satellites, manufacture them, launch them, and then maintain them while in orbit. The company is developing a new, larger rocket called the Neutron, which will allow it to deliver a wider range of payloads into space. It has also used the cash it raised when it went public to acquire companies that help it compete in areas other than launch, enabling it to grow quickly while keeping its debt in line with its cash reserves. The opportunity before Rocket Lab is massive. Morgan Stanley estimates the space economy could grow to $1 trillion by 2040. But some of that potential growth is already priced in. Shares of Rocket Lab are up by more than 500% over the past year, and the company currently trades at 22 times expected sales. That's a premium valuation for a business that does not expect to be profitable before 2027. Throw in questions about the timing of Neutron's introduction and uncertainty about how quickly the space economy will develop, and there is a lot of hope baked into the valuation. Given the number of space stocks competing for the business, as well as private companies, including Elon Musk's SpaceX, there is no guarantee that revenue growth and profitability will come as expected, even if Rocket Lab gets the engineering right. That leaves the stock open to further volatility: Investors tend to sell stocks with high valuations at the first hint of trouble. At these levels, it is easier to be bullish about Rocket Lab the company than Rocket Lab the stock. The company seems well on its way to establishing itself as the leader among the next generation of space companies. But this is literally rocket science, and projects of this complexity have a tendency to run into speed bumps and can fall off course. For patient, long-term investors, Rocket Lab has earned the right to be part of a well-diversified portfolio. But given today's valuation, investors should be in no rush to pile in and accumulate shares. This space race will take time to play out. Before you buy stock in Rocket Lab USA, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rocket Lab USA 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 $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 2, 2025 Lou Whiteman has positions in Rocket Lab USA. The Motley Fool has positions in and recommends Rocket Lab USA. The Motley Fool has a disclosure policy. Is Rocket Lab a High-Risk, High-Reward Opportunity? was originally published by The Motley Fool 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
Yahoo
29-05-2025
- Business
- Yahoo
Why Rocket Lab USA, Inc. (RKLB) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where Rocket Lab USA, Inc. (NASDAQ:RKLB) stands against other best-performing stocks. Rocket Lab saw its share prices jump by 13.14 percent on Tuesday to close at $28.76 apiece following news that it was entering the payload market business through the acquisition of Geost, LLC's parent company for $275 million. In a statement, Rocket Lab USA, Inc. (NASDAQ:RKLB) said it entered into a definitive agreement with Lightridge Solutions, a portfolio company of ATL Partners, for the acquisition of Geost's parent company for a mix of cash and privately placed shares. According to Rocket Lab USA, Inc. (NASDAQ:RKLB), it will pay Lightridge Solutions some $125 million in cash and $150 million in RKLB shares, on top of an additional $50 million payout tied to revenue targets. A launch pad atop a grassy hill, smoke filled sky from a successful voyage to space. The acquisition marks Rocket Lab's formal entry into the satellite payload segment, strengthening its position as a provider of end-to-end national security space solutions. The acquisition is expected to close in the second half of 2025. Overall, RKLB ranks 8th on our list of best-performing stocks. While we acknowledge the potential of RKLB, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RKLB and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
