Down Nearly 65% From Its 52-Week High, Has Rocket Lab Stock Become a Bargain Buy?
Key Points
Rocket Lab's stock has been falling sharply in recent months, ever since the SpaceX IPO.
Its business, however, has been growing fast, and it posted record numbers in its most recent quarter.
The launch of its larger Neutron rocket will open up even more growth opportunities.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
Rocket Lab (NASDAQ:RKLB) stock has been declining sharply in recent months. Around the time Space Exploration Technologies Corp went public, there has been less excitement (and money) to go around for space stocks, and Rocket Lab appears to have felt that, significantly. In late May, just before the SpaceX IPO, it hit a high of $151. On Monday, it closed at just under $54 -- a decline of 64% from that peak.
At $34 billion in market cap, it's nowhere near as big as SpaceX, which is worth around $2 trillion today. But it still has tremendous growth potential in space, and it's been posting some incredible numbers. Could this struggling rocket stock be a bargain buy right now?
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Image source: Getty Images.
Rocket Lab has been growing fast, and the best is still to come
Rocket Lab makes money not only from launching rockets but also from building satellites and spacecraft. It's a business that can benefit from the overall growth of the space economy. When it last reported earnings in August, it posted record numbers yet again, as revenue of $234 million was up an impressive 62% year over year.
It wasn't all that long ago that the business wasn't even generating that much annually. Back in 2022, its top line totaled $211 million. Meanwhile, over the trailing 12 months, it has generated $769 million in total revenue.
And yet, there are still tremendous opportunities ahead as the company's Electron rocket can carry payloads up to 300 kg, but its larger Neutron rocket is sure to unlock even more potential -- it can carry up to 13,000 kg. And that rises to 15,000 kg for expendable missions. Neutron's initial launch has been delayed until next year, and that has soured investors who were hoping to see it this year. But it's still a huge potential catalyst for the business down the road.
The stock comes with risk, but it may prove to be a steal of a deal in the long run
Rocket Lab has been growing fast, and its opportunities are promising, but investors shouldn't overlook the risk, either. The business remains unprofitable, and spending is likely to be high, given the nature of its operations.
For investors who are, however, comfortable with taking on some risk and volatility, the stock may be worth buying right now, while the market looks to be looking past Rocket Lab. When Neutron finally launches, that could once again spark excitement in the stock and send it soaring.
We just issued 'double down' alerts on 3 stocks — find out if Rocket Lab made our list
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 $561,556!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $65,603!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $344,608!*
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 27, 2026.
David Jagielski, CPA 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
