Why Rocket Lab Stock Shot 30% Higher This Week
Key Points
SpaceX is rumored to seek a $1.5 trillion IPO, which is lifting the entire space sector.
Rocket Lab made progress in testing its larger Neutron rocket.
The stock looks wildly expensive right now.
- These 10 stocks could mint the next wave of millionaires ›
Shares of Rocket Lab (NASDAQ: RKLB) shot up 30% this week, according to data from S&P Global Market Intelligence. An upstart space flight company that is benefiting from increased spending on the space economy, Rocket Lab stock was trading higher this week because of a report about a potential $1.5 trillion SpaceX IPO (initial public offering) in 2026.
Rocket Lab also made another milestone in the development of its new, larger rocket called the Neutron. Here's why the stock was up 30% this week to a price of $63.44 as of this writing on December 12th, 2025.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Heavy space economy investments
Even though it isn't directly associated with the Rocket Lab business, SpaceX is compared heavily to the upstart rocket launch provider as the leader in the commercial launch sector. When investors get bullish on SpaceX -- which is currently one of the largest private companies in the world by valuation -- they tend to also get bullish on the prospects of Rocket Lab.
It turns out that public market investors may get a chance to buy SpaceX shares next year. Reports have come out that the company is planning an IPO next year at a hefty valuation of $1.5 trillion, raising $30 billion in funds in the process. Seeing how investors are valuing SpaceX at such a premium price has translated to gains in Rocket Lab stock this week.
On top of the SpaceX news, Rocket Lab made progress with its "Hungry Hippo" rocket fairing for its large Neutron rocket, which is undergoing testing and hopefully going to perform full flights and commercial launches in 2026.
Image source: Getty Images.
Should you buy Rocket Lab stock?
Shareholders of Rocket Lab are sitting fat and happy after the returns of the last few years. The stock is up over 10x since the beginning of 2024, when shares were trading below $5.
Rocket Lab's business is doing well right now. Revenue grew 48% year-over-year to $155 million last quarter, with plenty of growth yet to come when the Neutron debuts later in 2026.
However, at a market cap of $34 billion, the stock has a price-to-sales ratio (P/S) above 50 at the moment, making the stock wildly overvalued and uninvestable at the moment.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $469,283!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $52,892!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $507,421!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
See the 3 stocks »
*Stock Advisor returns as of December 8, 2025
Brett Schafer 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.
Recommended Articles
