RKLB: Rocket Lab Stock Up Over 25% in Five Days. Here’s Why Retail Traders Love to Buy In
2 min read
Key points:
- Rocket Lab shares soar, soar, soar
- Retail traders can’t get enough of them
- Lossmaker, but big on business growth
Space-sector investments have taken off among the retail crowds and Rocket Lab is a top pick thanks to a bunch of things it’s got going for it.
🚀 Shares Up However You Look
- Rocket Lab
RKLB is on a tear — the stock is up 25% since last Wednesday, logging its fifth consecutive green day on Tuesday as retail traders pile back into one of their favorite speculative plays. Pre-market Wednesday? Another 2% added.
- Behind the move? A mix of momentum-chasing, rate-cut optimism, and big-picture bets on the space economy. Zoom out to one year ago, and shares are up a whopping 690%, valuing the space company above $21 billion.
- Shares of Rocket Lab are benefiting from renewed enthusiasm for momentum stocks, the market’s top-performing names since Trump’s tariff announcement in April sent traders scrambling for high-growth plays.
📻 More Recently…
- Last Friday, Fed Chair Jay Powell gave markets another lift when he hinted at a possible September rate cut during his Jackson Hole speech, setting off another wave of risk-on sentiment across equities.
- Retail traders, who drove Rocket Lab’s surge in 2024 (up 300% for the year), are circling back, using dips to add exposure as speculation in small-cap space names heats up again.
- Rocket Lab has positioned itself as one of the leading small-satellite launch providers, and investors see it as a pure-play growth bet on the expanding space sector, projected to hit $1 trillion in value over the next decade.
🌌 Betting on the $1T Space Economy
- Despite its valuation and lack of profitability, the small SpaceX rival continues to draw in retail buyers thanks to government contracts, ongoing R&D investments, and consistent demand for low-cost launch services.
- For the speculative thrill-seekers out there, Rocket Lab isn’t about today’s earnings — it’s about first-mover advantage in what could become one of the fastest-growing tech frontiers. As to the earnings…
- There aren’t any. Second-quarter losses piled to 13 cents a share, deeper than the 10 cents expected, topping last year’s 8-cent loss.
😎 But the Biz Is Growing Fast
- Revenue seems fine, though. Rocket Lab generated $144.5 million in second-quarter revenue, up sharply from $105 million in the same quarter last year. It was thanks to strong growth in satellite launch services and related technologies.
- While the company still isn’t profitable, revenue acceleration is helping to justify some of the hype, and traders are willing to pay up for business expansion rather than current earnings.
- Broadly, space commercialization is gaining traction — from defense contracts to private satellite deployment — and Rocket Lab’s bull case remains squarely tied to future demand, instead of today’s balance sheet.