Investment Review day 18 of 50: Rocket Lab $RKLB
Rocket Lab is a dynamic player in the space industry, carving out a lucrative niche by catering to smaller satellite launches with its Electron rockets. The company’s focus on reliability and customer service positions it well for growth. With Electron launches now profitable and the anticipated launch of Neutron later this year, Rocket Lab’s revenue is primed for significant expansion. Its smart acquisitions in satellite components and systems further solidify its move towards becoming an end-to-end space solutions provider, tapping into a vast “space applications” market.
While the space industry is notoriously risky, Rocket Lab’s current valuation seems attractive given its growth trajectory and potential. However, launch failures, particularly as the company brings Neutron to commercialisation, could impact the company’s reputation and valuation. Additionally, the company’s ambitious growth plans will require significant capital, potentially leading to shareholder dilution.
I’ve now bought stock on three occasions, most recently last month, when the valuation was significantly impacted after the company announced plans to issue convertible debt that were not well received by the market.
Are you invested in the future of space?
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