Why Rocket Lab Stock Is Soaring This Week
Key Points
Rocket Lab announced a new three-launch deal with iQPS -- on top of the four it already had planned.
This deal occurs just one week after the company added 10 launches to a previous agreement with Synspective.
Rocket Lab's future looks brighter than ever, but it is home to a precipitous valuation.
- These 10 stocks could mint the next wave of millionaires ›
Shares of launch services and space systems innovator Rocket Lab (NASDAQ: RKLB) rose 19% this week as of noon ET on Thursday, according to data provided by S&P Global Market Intelligence.
The catalyst for Rocket Lab's share price hitting all-time highs came from an announcement where it signed a three-launch deal with Japan's Institute for Q-shu Pioneers of Space (iQPS).
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 »
This development adds to a four-launch deal already booked with iQPS, which is building out its Earth-imaging constellation via Rocket Lab's Electron rockets.
This arrangement comes just one week after Rocket Lab secured a 10-launch agreement with Japan's Synspective, which will now have 21 launch missions together.
Rocket Lab: Firing on all boosters
Already home to a $1 billion backlog as of the second quarter, founder-led Rocket Lab keeps stacking launch orders as quickly as it can get rockets in the sky.
These deals provide steady growth, but Rocket Lab's burgeoning capabilities are the star of the show for investors looking decades down the road.
Image source: Getty Images.
These capabilities include:
- A Q2 announcement of back-to-back launches on Complex 1 in two days, showing the potential for higher launch frequency
- The company's Geost acquisition closing, building out Rocket Lab's payload opportunities
- Approaching clearance for a buyout of Mynaric and its laser communication abilities, adding to Rocket Lab's vertical integration
- A potential launch of its new Neutron rocket later this year, which would open the door for larger payloads
- A margin profile that is quickly improving, reducing the stock's reliance on outside funding
So is Rocket Lab a buy?
Despite all these promising traits, however, Rocket Labs trades at a lofty 67 times sales and is not yet profitable. Interested investors may want to buy shares in multiple batches over time, rather than all at once.
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 $490,472!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,046!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $654,835!*
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 October 7, 2025
Josh Kohn-Lindquist has positions in Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
Recommended Articles
