Should You Buy Rocket Lab Stock After It Just Won Its Largest Launch Contract in History?
Key Points
Shares of Rocket Lab have fallen more than 50% since reaching an all-time high in May.
Rocket Lab's backlog is $2.2 billion as of the first quarter of 2026.
- These 10 stocks could mint the next wave of millionaires ›
Since the IPO of Space Exploration Technologies (NASDAQ: SPCX), space-related stocks, including Rocket Lab (NASDAQ: RKLB), have tumbled. Rocket Lab's slide may come to a grinding halt on the back of a lucrative new deal with the U.S. Space Force. Should investors jump on board?
On July 27, Rocket Lab announced a $266 million contract with the Space Force's Rocket Systems Launch Program. The government award covers 12 suborbital missions, with the option for up to six more, flown mostly from a new launch site in Kodiak, Alaska.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Rocket Lab's revenue keeps on climbing. The end-to-end space company finished 2025 with $602 million in revenue and more than $2 billion in its backlog as of the first quarter of 2026. Rocket Lab is also close to launching its reusable medium-lift rocket, Neutron. If Neutron is successful, it poses a direct challenge to SpaceX's launch dominance.
Image source: The Motley Fool.
The stock is down more than 50% from its peak of $151 per share in late May. This is a volatile stock, and with the space industry still in its infancy, investors should expect wild price swings. Still, Wall Street is largely bullish on Rocket Lab, and so am I.
With a steady stream of new contracts and a strong relationship with the U.S. government, Rocket Lab has significant potential. There's always execution risk with a company dealing in such expensive, high-stakes engineering projects. Still, so far, the company has proved it is capable of both building innovative space technologies and closing deals. This latest deal with the Space Force further solidifies my belief that Rocket Lab is here to stay and is a buy for patient, risk-tolerant investors.
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 $511,613!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,817!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $390,394!*
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 July 30, 2026.
Catie Hogan 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
