Founded in 2006 by New Zealand entrepreneur Peter Beck, Rocket Lab (RKLB -2.27%) is an aerospace company that designs, manufactures, and operates launch vehicles, spacecraft, and related space systems. The company also develops and manufactures spacecraft components and provides on-orbit management solutions.
Rocket Lab is known for its Electron rocket. This small orbital launch vehicle launches small satellites into low Earth orbit (LEO) and offers rideshare options, a cost-effective way to launch small satellites into orbit, allowing multiple payloads to share a single launch. Rocket Lab is now developing Neutron, a larger, reusable launch vehicle for heavier payloads and constellations.
The company designs and builds a range of spacecraft, including those for Earth observation, scientific research, and communications. It also provides a wide variety of satellite components, such as star trackers, reaction wheels, solar cells, and separation systems, while offering solutions for managing spacecraft in orbit, including mission control and operations.
Keep reading to learn how to buy shares of Rocket Lab stock, what to consider before investing in this company, whether the company is profitable, whether it pays a dividend, and so much more.
How to buy Rocket Lab stock
Investing in Rocket Lab stock is easy because it's a publicly traded company. If you want to invest in shares of Rocket Lab, here's what you need to know.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should you invest in Rocket Lab?
Whether you should buy shares of Rocket Lab will depend on numerous factors, such as your personal risk tolerance, investment interests, portfolio goals, and financial objectives. Rocket Lab's business model focuses on providing a range of space-related services, including launch services, satellite manufacturing, and spacecraft components, to make space access faster, easier, and more affordable.
Rocket Lab specializes in small orbital launch vehicles like Electron and offers reliable launch services for private and public sector organizations. Its spacecraft platforms have been selected to support NASA missions and private commercial missions.
It offers mission design, spacecraft assembly, integration, testing, and mission operations support. Rocket Lab's vertically integrated approach enables it to control the entire process -- from launch vehicle design to spacecraft manufacturing -- allowing for greater efficiency, faster production timelines, and lower costs.
The company has launch sites in New Zealand and Virginia. Electron has become the second-most frequently launched U.S. rocket, delivering more than 200 satellites to orbit. It is also developing the larger Neutron launch vehicle for constellation deployment.
Rocket Lab's Neutron rocket is nearing its first launch, with the vehicle expected to be operational in the second half of 2025. Neutron is a reusable, medium-lift rocket designed to deliver payloads up to 13,000 kilograms (about 28,660 pounds) to low Earth orbit.
Rocket Labs is expanding its product portfolio with new offerings, such as STARRAY solar arrays and Frontier radios, aiming to make space access more accessible. The company is also exploring opportunities in the space infrastructure market, developing and manufacturing components for other companies' satellites.
Additionally, Rocket Lab has announced plans to acquire Mynaric, a provider of laser optical communication terminals, to expand its footprint in Europe and integrate its products into its own satellite constellation.
Most of Rocket Lab's revenue comes from its space systems division, which builds spacecraft, satellites, and spacecraft components. The Electron launch vehicle, a small- to medium-class vehicle, is the world's third-most-frequently launched orbital rocket.
NASDAQ: RKLB
Key Data Points
Is Rocket Lab profitable?
Rocket Lab is actively developing new technologies, like the Neutron launch vehicle, and expanding into new markets, like on-orbit management. However, these potential revenue streams are still in the early stages of development.
Rocket Lab's vertically integrated business model can lead to higher expenses and a longer time to profitability compared to companies that focus on a single area. While Rocket Lab has shown revenue growth, it has also historically faced losses and low margins.
Its losses are partly due to the capital-intensive nature of the space industry and the ongoing development of new technologies. Despite challenges, Rocket Lab has demonstrated strong revenue growth, including a record 2024, and maintains a substantial backlog of contracts.
Rocket Lab's 2024 revenue was $436 million, a 78% year-over-year increase. At the end of 2024, the company posted a backlog of almost $1.1 billion, with 64% attributed to its space systems division and 36% to its launch business.
Rocket Lab is not currently profitable. While the company has a large backlog and is working on improving its unit economics, it is still losing money. However, with the launch of its new rocket, Neutron, and the growth of the space economy, some analysts predict Rocket Lab will become profitable as early as 2027.
Exchange-Traded Fund (ETF)
Will Rocket Lab stock split?
Rocket Lab has never split its stock and is not on the list of upcoming stock splits. Stock splits are not a guaranteed event, and companies decide on them based on various factors, including market conditions and their financial health.
Shares of Rocket Lab have not traded above $40 since its initial public offering (IPO) via special purpose acquisition company (SPAC) in 2021. So, they still trade at an accessible price to retail investors, and a stock split remains unlikely.
The bottom line
Rocket Lab's growth prospects are promising. Its next-generation reusable rocket, Neutron, is expected to be a key catalyst for future growth, unlocking a larger market for the company. Rocket Lab's space systems business is expected to contribute significantly to future growth.
Rocket Lab's vertical integration provides operational efficiencies and positions it for long-term growth. Achieving profitability and maintaining positive cash flow will also be critical for sustained growth in the future. The space industry is competitive, and Rocket Lab faces challenges from established players like SpaceX.
For investors who want to put cash into a risky but potentially rewarding play on the future of the space economy, Rocket Lab could be a worthwhile investment. However, if you're looking for a profitable company or have a more conservative investing style, you may want to look elsewhere.
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