Their Rockets Won't Blow Up, But The Stock Might -- Initiating Rocket Lab At Buy

2025-03-12 11:00:40 ET

Summary

• Rocket Lab USA's stock crashed 35% over the past month on investor panic about the Neutron launch delay and lower guide for next quarter.
• Panic was blown out of proportion; this was a temporary setback, but the bigger picture for Rocket Lab's growth story remains intact.
• News broke Tuesday that the company is acquiring Mynaric, aka expanding their operations, and they sit on a robust $1.05 billion backlog.
• Launch is their fastest growing segment, and I expect it to bring in more money this year with 20 launches scheduled compared to 16 last year.
• I hereon share my sentiment on Rocket Lab and why I think RKLB stock will be an outperformer in 2025.

Investment Thesis

Rocket Lab USA, Inc. ( RKLB ) has a jam-packed 2025 schedule filled with new launches as well as acquisitions. I'm initiating the stock with a buy. Not too big, not too small, Rocket Lab sits in a strategic position to expand into an ever-growing space tech economy. The stock price ran up materially over the past year, up around 310%, including an almost 160% boost over the past six months. The good news, though, is that the stock got kicked down a little this month, dropping 37%, on investor panic post-earnings, as shown below....

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