Rocket Lab (NASDAQ: RKLB) is an early industry leader in the young and high-growth space exploration industry. It is a publicly traded aerospace company that specializes in launching rockets and designing spacecraft for a global customer base. Rocket Lab stands out because it has already designed and developed an impressive portfolio of rockets that are in high demand to deliver high-tech equipment and operate in space.
Looking forward, Rocket Lab is close to an important milestone – becoming one of the few companies on planet earth to develop a mostly reusable rocket – called Neutron. That’s why I call Rocket Lab ‘SpaceX Junior.’ Let’s take a closer look at high-growth space industry and why Rocket Lab is in position to capitalize.
Space Exploration Industry Predicted to Surge
In the old days the U.S. government and other powerful governments around the world were leading the charge in space exploration. In the last ten years we have seen a big shift – the space exploration industry is becoming privatized. That transition has been visible with a growing list of famous billionaires launching private space exploration companies. That includes Elon Musk with SpaceX, Jeff Bezos with Blue Origin and Richard Branson with Virgin Galactic.
*image from businessinsider.com
The reason the space industry is going private is simple – there is massive demand from the private sector for more rockets to haul high-tech equipment into space, operate in space and collect data from space. This is why the most respected market-research firms are predicting the space exploration industry will experience significant growth in the next ten years.
Leading market-research firm McKinsey & Company recently published a report on the space industry – predicting tremendous growth in the next ten years. Here are some more details.
The space industry is approaching the next frontier, with each week bringing news of a major development somewhere in the world. Be it a test of a new rocket system, the launch of an innovative satellite, or a robotic exploration mission safely landing on the moon, activity in space is accelerating.
We estimate that the global space economy will be worth $1.8 trillion by 2035 (accounting for inflation), up from $630 billion in 2023. This figure includes both “backbone” applications—such as those for satellites, launchers, and services like broadcast television or GPS—and what we term “reach” applications”—those for which space technology helps companies across industries generate revenues. Uber, for example, relies on the combination of satellite signals and chips inside smartphones to connect drivers and riders and provide directions in every city.
Many of my wealth management clients have expressed interest in investing in SpaceX – the clear, early industry leader in space exploration with its re usable rockets. The barrier is that SpaceX is still a private company and shares are not available to the public on the stock exchanges in New York City. However I see an excellent alternative in another early industry leader that most investors have never heard of.
Rocket Lab (NYSE: RKLB) was founded in 2006 and is headquartered in Long Beach, California. The company went public in early 2020 and its shares are currently traded on the NASDAQ stock exchange. This is no fly-by-night company. Rocket Labs has established itself as an early industry leader in space exploration with an impressive portfolio of revenue producing rockets and space systems. Below I am going to highlight a few factors that have distinguished Rocket Labs from the competition and why I am bullish on this stock.
Industry leading portfolio of space products and services: Rocket Lab owns one of the best and most advanced portfolios of rockets and space systems in the industry. That includes its Electron rocket, a partially reusable rocket that has launched 239 satellites into space. There is already massive demand for Electron’s service to launch more satellites into space and that’s the main reason Rocket Lab revenue is surging. Take a look at Electron in action below.
Impressive sales growth of 54% YOY in 2025: Because of its industry leading portfolio of rockets and space tech, Rocket Lab has been delivering impressive sales growth in the last four years.
- Rocket Lab revenue for the twelve months ending June 30, 2025 was $0.504B, a 54.36% increase year-over-year.
- Rocket Lab annual revenue for 2024 was $0.436B, a 78.34% increase from 2023.
- Rocket Lab annual revenue for 2023 was $0.245B, a 15.92% increase from 2022.
- Rocket Lab annual revenue for 2022 was $0.211B, a 239.02% increase from 2021.
*chart and stats from macrotrends.com
$1 billion sales backlog: Looking forward Rocket Lab has an impressive pipeline of future sales that should keep revenue climbing for many years. At the end of the second quarter of 2025 Rocket Lab report a sales backlog of $1 billion.
The next-gen Neutron rocket could be a game changer: Rocket Lab is deep into development of its next generation rocket called Neutron. Neutron is special for a few reasons. While the electron rocket can carry about 660 pounds of payload to low orbit earth, if successful Neutron will be able to haul 28,000 pound payloads to space. This is the reason Rocket Lab will be charging its customers around $50 million per launch – big rocket equals big revenue. Neutron is also going to be mostly reusable, similar to Electron and the SpaceX style. Rocket Lab is shooting for its first test launch of Neutron by the end of 2025. Keep an eye on Neutron, the success or failure of this rocket will have a big impact on shares.
Rocket Lab Has Been Wild on the Chart
Rocket Lab went public in 2021 and for the first few years shares didn’t do well. However, as Rocket Lab acquired more customers and grew revenue, investors started to notice. Shares took off in the second half of 2024 and have been on a roll since. I bought shares for my clients between $45 and $50 in July and August during a period of consolidation on the chart. I would like to buy more shares but will be waiting for pullbacks.
Bigger picture, as you can see from the chart this can be a very volatile stock and the company’s success is not a guarantee. I consider this to be a very high risk, high reward company and stock that has been prone to periods of extreme volatility. I will continue to exercise patience and caution when operating in this stock.
The Big Picture on Rocket Labs: Rocket Lab is an early industry leader in the high-growth space industry. The company has an impressive portfolio of space rockets and systems. The Neutron rocket could be a game changer. If Rocket Lab succeeds with Neutron it should support strong revenue growth for many years. I consider this to be a high-risk, high-reward company and its stock has been prone to extreme volatility in the past. Either way Rocket Lab is one of the most interesting companies I’ve seen in a while and this is a stock for growth investors to watch closely.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.
