Latest news with #RocketLabUSA
Yahoo
3 days ago
- 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
Yahoo
29-05-2025
- Business
- Yahoo
Needham Sees Upside in Rocket Lab Post-Geost Deal, Hikes Price Target
Needham reaffirmed its Buy rating on Rocket Lab USA, Inc. (NASDAQ:RKLB) and increased its price target from $28 to $32 on May 28. The adjustment was announced following the news that Rocket Lab will acquire Geost LLC, a company specializing in infrared and electro-optical payloads for national security. The two companies share a defense clientele, which includes the Space Force, the U.S. Air Force, and the Space Development Agency (SDA). Notably, Rocket Lab USA, Inc. (NASDAQ:RKLB) agreed to acquire Geost at a purchase price of $275 million, with $125 million in cash and $150 million in RKLB shares, along with the possibility of an additional $50 million in cash earn-outs. Needham views the acquisition as a major step for Rocket Lab USA, Inc. (NASDAQ:RKLB), boosting its position as a leading defense and aerospace contractor. According to the firm, Rocket Lab's enhanced position could prove essential as it competes for a number of government projects, including the Golden Dome project. While we acknowledge the potential of RKLB to grow, 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 100x upside potential, check out our report about the cheapest AI stock. Read More: and Disclosure: None.
Yahoo
29-05-2025
- Business
- Yahoo
Needham Sees Upside in Rocket Lab Post-Geost Deal, Hikes Price Target
Needham reaffirmed its Buy rating on Rocket Lab USA, Inc. (NASDAQ:RKLB) and increased its price target from $28 to $32 on May 28. The adjustment was announced following the news that Rocket Lab will acquire Geost LLC, a company specializing in infrared and electro-optical payloads for national security. The two companies share a defense clientele, which includes the Space Force, the U.S. Air Force, and the Space Development Agency (SDA). Notably, Rocket Lab USA, Inc. (NASDAQ:RKLB) agreed to acquire Geost at a purchase price of $275 million, with $125 million in cash and $150 million in RKLB shares, along with the possibility of an additional $50 million in cash earn-outs. Needham views the acquisition as a major step for Rocket Lab USA, Inc. (NASDAQ:RKLB), boosting its position as a leading defense and aerospace contractor. According to the firm, Rocket Lab's enhanced position could prove essential as it competes for a number of government projects, including the Golden Dome project. While we acknowledge the potential of RKLB to grow, 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 100x upside potential, check out our report about the cheapest AI stock. Read More: and Disclosure: None. Sign in to access your portfolio
Yahoo
28-05-2025
- 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
