Rocket Lab USA (NasdaqCM:RKLB) Lands US$46 Billion U.S. Air Force Contract
Be aware that Rocket Lab USA is showing 2 weaknesses in our investment analysis.
The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
Rocket Lab USA's recent government contract announcements, particularly the US$46 billion U.S. Air Force contract and its involvement in the UK's hypersonic technologies program, could influence the company's projected growth outlined in the narrative. These contracts suggest a firm foothold in aerospace, potentially boosting future revenues and earnings by strengthening its position in national security sectors. This aligns with the company's increased focus on medium-class launches and cost-efficiency projects like the Neutron rocket and the Flatellite satellite, which are expected to cater to both commercial and defense markets.
Over the past year, Rocket Lab's total shareholder return, including share price and reinvested dividends, surged to a very large percentage, highlighting significant long-term capital appreciation. This performance stands out against the US Aerospace & Defense industry's 1-year return of 16.3% and the broader U.S. market's 2.5% return over the same period, underlining Rocket Lab's distinct outperformance relative to industry and market averages.
The recent news has potential implications for revenue and earnings forecasts, with analysts anticipating revenue growth attributed to increased launch frequencies and expanded product offerings. Earnings are, however, under pressure from factors like execution risks and competition, but the infusion of large government contracts could bolster long-term profitability. Despite a flat 1.5% share price movement, the price target of US$24.32 remains approximately 18.8% above the current share price of US$19.74, suggesting room for potential upward movement as Rocket Lab continues to execute its growth strategies.
Explore Rocket Lab USA's analyst forecasts in our growth report.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NasdaqCM:RKLB.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


USA Today
2 days ago
- USA Today
Could this California company challenge SpaceX's Falcon 9? What to know about Rocket Lab
Rocket Lab has increasingly been in the news over mounting anticipation for the first launch of its upcoming Neutron rocket. Rocket Lab, a spaceflight company based in California, has spent years building up a reputation as a reliable launch service provider for small satellites. Now, though, the venture has its sights set on bigger targets: Procuring some of those lucrative government and commercial contracts that have long been the domain of Elon Musk's Texas-based SpaceX. Maybe you've heard about Rocket Lab's diminutive Electron launch vehicle, which the company bills as the second-most active rocket in the U.S. Or maybe you've heard about its next-generation Neutron spacecraft, which could soon be making its inaugural flight from Virginia. Whichever may be the case, here's everything to know for those interested in Rocket Lab and its future plans for spaceflight. What is Rocket Lab? Rocket Lab is a launch service provider and spaceflight company founded in 2006 and based in Long Beach, California. The company operates out of three launch pads at two launch sites, including one in New Zealand and two in Virginia at the Mid-Atlantic Regional Spaceport within NASA's Wallops Flight Facility. Rocket Lab Neutron launch date Rocket Lab has increasingly been in the news over mounting anticipation for the first launch of its upcoming Neutron rocket. The satellite launch vehicle is central to Rocket Lab's plans to shift from small satellite deployments to missions with heavier payloads. But when exactly the Neutron rocket could make its orbital debut has yet to be determined. Rocket Lab continues to work through a checklist of requirements before Neutron can get off the ground for its maiden flight. That includes integrating – or stacking – the rocket stages and getting its commercial launch license from the Federal Aviation Administration, according to the company's first-quarter earnings presentation provided to the USA TODAY Network. The good news? Construction on infrastructure at the launch pad is on schedule, according to the report. Earlier in July, Rocket Lab also announced that the company had awarded a contract to shipbuilder Bollinger Shipyards to support the build of a 400-foot ocean landing platform named "Return On Investment." But the challenge for Rocket Lab will be in transporting the components of the Neutron to the facility, according to the website TechCrunch. The vehicle must be shipped in segments to Rocket Lab's Launch Complex 3 in Virginia, where it will be fully mated as a rocket. Could Neutron challenge SpaceX, Falcon 9? Many space industry analysts have said that Neutron could emerge as a credible challenger to SpaceX's Falcon 9 in the medium-lift launch market. Rocket Lab is developing the Neutron rocket – which already has contracts with the Department of Defense – for commercial, civil and military space operations. That includes satellite constellation deployments, cargo resupply missions to the International Space Station and interplanetary missions. The arena is one that SpaceX, founded by billionaire Elon Musk in 2002, has dominated for years with its Falcon 9 rocket – one of the most active rockets in the world. The Falcon 9 is routinely the rocket of choice to launch NASA astronaut missions to the International Space Station and is the exclusive launch provider for Musk's Starlink satellite deliveries. At 141-feet-tall, Neutron is smaller in stature than SpaceX's two-stage, 230-foot Falcon 9. But like the Falcon 9, Neutron is designed to be reusable so that it can launch more frequently. Its design features an integrated system that brings Neutron's first stage and payload fairings back to Earth as a single stage. Capable of delivering about a 14-ton (more than 28,600 pounds) payload to low-Earth before landing, Neutron is powered by Rocket Lab's newly developed Archimedes engine. Rocket Lab's emergence also comes at a time of mounting public discord between Musk and President Donald Trump. What is Rocket Lab's Electron rocket? Rocket Lab has already spent years reliably launching its smaller Electron rocket to deliver small satellites and other payloads to orbit for civil and commercial contractors. At 59 feet tall, Electron is capable of carrying just 661 pounds of cargo to space, according to Rocket Lab. A version of the rocket is also tailored for Rocket Lab's hypersonic HASTE launches. One of the two launch complexes where Electron can launch is right next door to the Neutron's new launch complex. Since its first orbital launch in January 2018, the Electron has delivered more than 200 satellites to orbit and become one of the most frequently launched U.S. rockets, second only to the Falcon 9, according to Rocket Lab. In June alone, the Electron launched four times on both government and commercial missions, according to Rocket Lab. The most recent mission came June 28 when the Electron launched a single satellite to space for "a confidential commercial customer," Rocket Lab announced in a press release. The mission was the second of two launches from the same launch site in less than 48 hours, a new launch record for the company. Is Rocket Lab a good stock to buy? Whether to invest Unlike SpaceX, Rocket Lab is publicly traded. While Rocket Lab's stock is up 800% over the past year, according to Forbes, the company is not yet profitable. "A lot hinges on Rocket Lab's ability to evolve its revenue model and reach sustained profitability," Sasirekha Subramanian, an equity research content expert, wrote for Forbes. Eric Lagatta is the Space Connect reporter for the USA TODAY Network. Reach him at elagatta@


Gizmodo
3 days ago
- Gizmodo
Rocket Lab Has Some Genuine Competition for SpaceX, but It Can't Reach the Launchpad
California-based startup Rocket Lab is looking to compete with industry leader SpaceX with its upcoming launch vehicle, Neutron. But before it can debut its reusable rocket later this year, the company has to figure out a way to transport Neutron's components to the southern tip of Wallops Island in Virginia. Rocket Lab is awaiting approval to dredge a permanent channel to the Mid-Atlantic Regional Spaceport (MARS) on Wallops Island, a spaceport surrounded by shallow waters and scarce infrastructure, TechCrunch reported. The company is racing to meet its deadline for Neutron's inaugural liftoff in September, but the rocket still needs to go through final preparations on its launchpad before it can launch, and it has to make it onto the island first. Stuck in the mud, Rocket Lab is contemplating an old-timey sailing technique known as kedging. The Virginia Commercial Spaceflight Authority operates MARS, a commercial launch site, in partnership with NASA's Wallops Flight Facility. The site represents an ideal alternative to Cape Canaveral in Florida, which is experiencing increased congestion due to the steadily rising number of rocket launches. Rocket Lab began constructing its second launch site, called Launch Complex-2, for its Electron rocket in 2019, which has so far carried out four missions from its Virginia launchpad. In 2023, Rocket Lab began construction of a new launch site for its Neutron rocket, Launch Complex 3. Rocket Lab has already spent millions on Launch Complex 3, and it plans on spending another $5 million or so to dredge Sloop Gut, a channel in Accomack County, Virginia, that serves as a navigation route on Wallops Island. The company wants to remove sediment from the channel and dredge around 5,300 feet (1,615 meters), deepening it to 7 feet (2 meters) below the water to accommodate large barges carrying its rocket components to the island. Its request was approved by the Virginia Marine Resources Commission in May, but the company is still waiting for the green light from the Army Corps of Engineers, according to TechCrunch. In the meantime, Rocket Lab is asking federal regulators for permission to use a technique called kedging, which involves using a series of anchors to haul a ship across shallow water. The company hopes the method will help transport Neutron's rocket parts in time for a launch this year. In case its request isn't approved in time, Rocket Lab suggests it can use ramps and cranes to transport Neutron's hardware across the waters or use a boat ramp. The clock is ticking for Rocket Lab to launch its Neutron rocket on time, a medium-lift launch vehicle capable of launching 13 metric tons to low Earth orbit. Neutron is Rocket Lab's answer to SpaceX's Falcon 9 (which can launch up to 22 metric tons to low Earth orbit), hoping to provide the industry with an alternative to sending satellites to space.
Yahoo
4 days ago
- Yahoo
The DORKs are popular this week. Here's the new class of meme stocks retail traders are pumping to the moon.
A surge in Opendoor stock in the last week has triggered a fresh meme stock rally. Retail traders are bidding up stocks with high levels of short interest and shaky financials. Opendoor, Kohl's, and others are seeing massive trading volumes. The DORKs are popular this week. With stocks at record highs, there's a new class of meme stocks that's grabbed the attention of retail traders. Absent are the OG meme names GameStop and AMC. Those early favorites have been replaced by another group. The DORKs—an acronym being thrown around by bullish traders to refer to the ticker symbols of Krispy Kreme, Opendoor, Rocket Lab, and Kohl's—are spiking in the last few days, with the burst of enthusiasm sparked by a stunning rally in Opendoor stock that's mostly cooled off even as the rest of the group surges. It's looking similar to 2021, when everything from crypto to pandemic-era blank check firms to highly-shorted companies with weak financials were getting pushed to dizzying heights. And with recent legislation proposing to loosen day trading restrictions by lowering the minimum margin account threshold, there's never been a more retail-friendly time in the markets. But there are differences, too, between today's rally and the pandemic-era frenzy. "Today's surge is powered by advances in trading technology, wider use of leverage, and the rapid expansion of the options market. Confidence among retail traders is notably higher, fueled in part by recent gains in crypto markets," Mark Hackett, chief market strategist at Nationwide, said. "While this activity reflects rising risk appetite, it remains isolated and has yet to challenge the broader market's calm and steady tone." Taking a page from Warren Buffett's book, investors are getting greedy, which also means extra caution may be warranted. Tony DeSpirito, head of US fundamental equities at BlackRock, is sensing some pockets of froth in the market as sentiment continues to rise and meme stocks surge. In particular, stocks with high multiples but low growth are concerning to DeSpirit. "Meme stocks are the epitome of greed," DeSpirito told Business Insider. "If I'm advising an individual, I'd tell them to stay away from the meme stocks and get the stocks that actually have good cash flow, good earnings, etc." Here's what's been moving in the meme stock world. Opendoor Technologies Prior to last week, Opendoor was an unloved penny stock on the verge of delisting from the Nasdaq. After hedge fund manager Eric Jackson shouted out the stock on X and gave it a hefty $82 price target, enthusiasm for Opendoor surged, activating the retail trader cohort who quickly went all-in. The stock has rallied over 440% in the last month alone, going from under a dollar to $2.88, even hitting $4.71 briefly at one point on Monday. The rally has stalled in recent days, with the shares down as much as 28% on Wednesday. The stock is still up 310% in the last month. Kohl's Corporation Kohl's stock jumped 38% on Tuesday, not on the heels of corporate news or earnings, but rather r/WallStreetBets chatter. Retail traders identified a short interest of nearly half of the company's float, making the stock a perfect candidate for a short squeeze. The frenzy caused trading in Kohl's shares to be temporarily paused during Tuesday's session. Krispy Kreme The doughnut chain Krispy Kreme surged 28% on Tuesday. The stock started 2025 trading at nearly $10 and proceeded to slide downwards in the following months after the company reported disappointing earnings—until this week. The stock soared again on Wednesday, up as much as 39%before paring gains. Krispy Kreme also has a significant short interest level of 33%, making it another target for Reddit short squeezers. Rocket Lab Rocket Lab stock has surged amid increased retail interest in space technology. The company provides end-to-end space services and is a rival to Elon Musk's SpaceX. The stock has been a Wall Street Bets favorite for many months now. Rocket Lab has surged nearly 50% in the last month and is up nearly 100% year-to-date, bolstered by news of recent government contracts and scheduled launches. The company's short interest comprises 13% of its float. GoPro Digital camera producer GoPro was also swept up in the meme-stock craze. In its heyday back in 2015, the stock traded at $67. A big influx of retail volume has propelled the stock from under a dollar to above $2 immediately upon Wednesday's open. The stock was up as much as 72% on Wednesday before paring the gain to around 40%. Nearly 10% of GoPro's float is shorted. Read the original article on Business Insider