Has Rocket Lab’s Stock Peaked?
Rocket Lab's stock (RKLB) has surged nearly 500% in the past year, raising questions about its valuation. The aerospace company's revenue grew from $62 million in 2021 to $436 million in 2024, but losses also climbed to $190 million. Investors are betting on its new Neutron rocket to drive future growth, yet the stock trades at 60 times trailing revenue and 40 times book value—a premium that may already price in lofty expectations.
High-growth stocks often justify short-term losses, but Rocket Lab's market cap of $28 billion leaves little room for error. The risk-reward calculus now hinges on flawless execution and untapped market opportunities. As the company transitions from small-scale launches to heavier payloads, its ability to monetize the Neutron platform will determine whether the current valuation is visionary or speculative.
