The 10-Year Treasury Eased to 4.9%. Here's Why Oklo, Archer, and Rocket Lab All Got Crushed -- and Which One I'd Buy Anyway.

The 10-year Treasury yield eased to 4.9%, but is still pressuring speculative growth stocks. Oklo (NYSE: OKLO), Archer Aviation (NYSE: ACHR), and Rocket Lab (NASDAQ: RKLB) have all taken a beating, but their long-term growth cases remain compelling.

Here's why they fell so sharply, and which one still looks like the best buy.

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Oklo's nuclear power could be a major winner in the AI boom

Higher Treasury yields make future earnings less valuable in today's dollars, which tends to hurt speculative growth stocks like Oklo.

The company has yet to scale its nuclear business before generating any meaningful revenue. As a result, investors may be less willing to pay a premium for profits that could be years away. Higher rates can also make financing its capital-heavy projects more expensive.

Still, the long-term case for advanced nuclear energy is intact. Oklo is developing its Aurora powerhouse, an advanced nuclear power plant designed to supply electricity to customers such as artificial intelligence data centers and industrial facilities.

The company is also working to establish a broader business around nuclear fuel recycling and isotope production.

Of course, Oklo faces risks, including potential issues with regulation, construction, and financing. The stock also trades at a price-to-sales (P/S) ratio of about 3,600 times, suggesting that investors have high expectations that it will grow dramatically. But if commercialization takes longer than expected, the stock could see some significant downside.

Nuclear power isn't the only industry facing higher capital costs. That same pressure is hitting companies transforming how people travel.

The air taxi opportunity is gaining traction at Archer Aviation

Archer still needs to scale production and launch electric commercial air taxi services, so investors may be less willing to pay for growth that could take years to materialize. Like with Oklo, higher borrowing costs can also make funding its expansion more expensive. Despite that, encouraging developments are emerging.

Archer is working to establish air taxi networks, develop the infrastructure needed to support them, and build relationships with aviation and transportation partners. Plus, Archer is developing autonomous and hybrid-electric aircraft with military contractor Anduril, giving it exposure to the defense industry.

Archer still has to navigate risks around aircraft certification, production scaling, and customer adoption. The stock also trades at a P/S ratio of about 460 times, as investors expect that electric air taxis will become viable and that Archer can capture a meaningful share. If that doesn't happen, the stock could continue to face steep losses.

Meanwhile, the next company already has a developed business supporting its long-term ambitions.

A more established way to invest in the space industry

Rocket Lab has an established business, but it's still investing heavily in new rockets and space systems, with much of its growth potential still years ahead. Like the others, though, higher borrowing costs could make its ambitious expansion plans less affordable to fund.

Still, Rocket Lab has built a broad space business that spans rocket launches, satellite components, and other space systems. Its Electron rocket has a track record of delivering small satellites into orbit, serving both commercial and government missions.

Rocket Lab is also developing Neutron, a medium-lift rocket that could serve a broader range of commercial and government launches. If successful, Neutron could expand its addressable market and tap more lucrative launch opportunities.

Even so, the company faces execution risks, competition, and the possibility that Neutron's inaugural launch could be delayed again. Its P/S ratio of about 45 times also reflects high expectations for growth. That means the stock could give back a lot more if those expectations aren't met.

All three stocks are feeling the pressure of higher yields, but one still looks like a buy.

Which of the three stocks looks like the best buy?

Oklo is focused on advanced nuclear power, Archer is trying to establish an electric air taxi business, and Rocket Lab is expanding its existing business in the space industry.

Of these three stocks, Rocket Lab could be the top pick. It combines an established business with opportunities to expand into larger launch vehicles and advanced space systems. But looking ahead, if Treasury yields remain elevated and the stock sees a sharper pullback, it could be an opportunity to buy at a discount.

Rick Orford 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.