Retail Investors Are Betting Big on Rocket Lab—Should You Too?

Key Points

• Rocket Lab is a retail favorite that surged over 300% in 2024 and remains a top speculative play for investors betting on long-term growth in the space sector.
• Its diversified business model, anchored by the Electron rocket and expanding with the upcoming Neutron launch, positions the company to scale.
• Despite its lack of profitability and lofty valuation, Rocket Lab’s government contracts, continued R&D investment, and exposure to a projected $1 trillion space economy make it an exciting growth opportunity.

Rocket Lab USA Inc. NASDAQ: RKLB became a retail favorite in 2024, gaining recognition and popularity and surging over 300% in value. While the stock has been relatively flat in 2025, that’s the only thing lacking momentum.

With the company aggressively pushing forward across multiple fronts, it remains a popular long-term bet among retail investors aiming to get in early on a major player in the growing space industry. 

A Space Company With Multiple Revenue Streams

Rocket Lab is an end-to-end space company offering reliable launch services, satellite manufacturing, spacecraft components, and on-orbit management. Its flagship Electron rocket, used for small satellite launches, has become the backbone of the business, launched 63 times as of April 2025.

With global demand for small satellite launches accelerating—over 10,000 are expected by 2030—Rocket Lab is well-positioned to capture market share. But the real excitement lies in the pipeline: the Neutron rocket.

Neutron is a reusable, medium-lift launch vehicle designed for satellite constellation deployments, national security missions, and even lunar or interplanetary exploration. Scheduled for its maiden flight in the second half of 2025, Neutron represents Rocket Lab’s bid to move upmarket and compete more directly with SpaceX.

It's a key piece of the company’s strategy to scale operations and gain relevance in the booming space economy.

Lofty Valuation and No Profitability, But a Pure Growth Play

Rocket Lab isn’t a value stock by any measure. With a market cap of $11.5 billion and a price-to-sales ratio of 25, it's a high-risk, high-reward growth play. The company remains unprofitable and continues to post losses, but that’s not unexpected for a firm in the middle of a deep R&D and growth cycle.

In Q1 2025, Rocket Lab reported revenue of $123 million, up 32% year-over-year and slightly above expectations. Its launch services generated $38 million, while space systems pulled in $85 million. However, the company posted a wider-than-expected loss of $0.12 per share and negative GAAP operating cash flow of $54.2 million for the quarter. R&D expenses rose nearly $7 million from Q4 due to continued investment in Neutron’s development.

Still, Rocket Lab's balance sheet remains solid, with $517 million in cash and equivalents, giving it breathing room to keep investing aggressively as it works to achieve major technical and commercial milestones.

Recent Developments and Major Milestones

The company confirmed its inaugural Neutron launch remains on track for the second half of 2025. Recently, Neutron was officially selected as part of the U.S. Department of Defense’s $5.6 billion National Security Space Launch (NSSL) Phase 3 Lane 1 program, making Rocket Lab one of just five companies selected for the initiative.

As part of the onboarding, it received a $5 million task order to demonstrate mission assurance capabilities. RKLB also received a separate contract from the U.S. Air Force for a future Neutron launch to test experimental point-to-point transportation.

Rocket Lab announced a NASA contract to launch its Aspera mission earlier this week. Aspera is a groundbreaking astrophysics project that will study the intergalactic medium and better understand how stars and planets form. Launching on the Electron rocket no earlier than Q1 2026, the mission could enhance Rocket Lab’s reputation as a trusted partner in advanced science missions.

Long-Term Growth in a $1 Trillion Opportunity

While Rocket Lab remains unprofitable and faces execution risk, particularly with the high-stakes Neutron launch, the broader opportunity in the space sector is undeniable. Morgan Stanley projects that the global space economy could exceed $1 trillion by 2040.

Rocket Lab has proven itself a reliable small satellite launcher, now leaping into national defense and large-scale missions. RKLB’s recent breakout and positioning in a rapidly expanding market could offer a compelling entry point for investors with a high risk tolerance and a long-term mindset.