Rocket Lab (NASDAQ: RKLB) stock has slipped into a local bear market after falling by 25% from its highest point this year. It was trading at $113.65, with its market capitalization falling from over $86.8 billion to $65 billion.
On a recent episode of Prof G Markets titled “The Space Boom Is Just Beginning,” Rocket Lab (NASDAQ: RKLB | RKLB Price Prediction) CEO Peter Beck pushed back against host Ed Elson's skepticism about space industry economics.
Few stocks have rewarded believers like Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) over the past 12 months.
There are pullbacks that signal something is wrong, and there are pullbacks that reflect a stock catching its breath after an extraordinary run. For Rocket Lab NASDAQ: RKLB, the nearly 24% decline from its 52-week high of $151 to Wednesday's close of $115 looks far more like the latter.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Rocket Lab Corporation delivered 63.5% YoY revenue growth to $200.3M, with gross margin expanding to 38.2% and backlog reaching $2.2B. Space Systems now drives 68% of revenue, while Launch Services provides strategic leverage and strong momentum, especially in defense and hypersonics. Despite a forward P/S of 78x and execution risks, especially around Neutron's launch and reusability, I rate RKLB a Strong Buy for long-term investors.
Rocket Lab Is Creating A Vertically Integrated Space Powerhouse
Rocket Lab Corporation has shifted from a risky launch-dependent story to a vertically integrated defense contractor with direct government contracts. RKLB's backlog surged 20% sequentially and 108% year-on-year in Q1 FY26, reaching a record $2 billion across all programs. Revenue growth and margin expansion are now driven by spacecraft manufacturing and space systems, not just launches.
Rocket Lab's Space Systems generated $136.7 million in Q1 revenue versus $63.7 million from launch services, highlighting a major business shift. Revenue surged 63.5% year-over-year to a record $200.3 million, while backlog exceeded $2.2 billion, up more than 100%. Neutron remains the primary catalyst, with five launch contracts already secured despite the rocket not yet flying.
Here's the uncomfortable truth for anyone who wants exposure to the space economy: the company that dominates it isn't public.
RKLB leans on Space Systems, including components, satellites, solar power and flight software, which now generates more revenues than Launch Services.
Rocket Lab (NASDAQ: RKLB) stock price has gone parabolic this year and is now trading at its all-time high. It soared for four consecutive weeks, meaning it has now jumped by over 4,000% from its pandemic low of $3.43.