Key Points
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Rocket Lab’s reusable Neutron rocket will enable it to compete more effectively with SpaceX.
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Meanwhile, the Iridium acquisition is a game changer and adds over $800 million in revenue.
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An expensive valuation might weigh Rocket Lab down for now, but the stock is capable of big things.
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The space economy has become a reality. According to Morgan Stanley, the global space industry could exceed $1 trillion in value by 2040. Given the vast potential for space infrastructure, that growth could continue for decades to come. Space Exploration Technologies, or SpaceX, recently went public in a blockbuster IPO, but it’s already worth over $2 trillion.
Don’t let SpaceX’s hype distract you from Rocket Lab Corporation (NASDAQ: RKLB) as a potential winner. The emerging SpaceX competitor is doing many things right and just made a very promising acquisition that could boost its growth prospects. I don’t think it’s a stretch to predict that Rocket Lab stock could help set investors up for life with its returns over the next few decades.
Rocket Lab has two major growth catalysts on the horizon
The company broke into the rocket launch services market with its Electron rocket, which is capable of putting small satellites into orbit. Rocket Lab is in the late stages of developing Neutron, its next launch platform. Neutron is a reusable rocket capable of larger payloads, putting it in direct competition with SpaceX’s Falcon 9, the current industry leader.
Rocket Lab is already booking Neutron launch missions. In all, the company booked more launches in the first quarter of 2026 than all of last year, and its current manifest of 70 launch missions is an all-time high.
The company wants to do more than launch rockets, though. Rocket Lab recently took a big step in that direction, announcing it was acquiring Iridium Communications for an enterprise value of $8 billion. Iridium provides satellite communications to 2.55 million government and commercial subscribers worldwide. By combining its rocket and satellite manufacturing with Iridium’s constellation, Rocket Lab is going after SpaceX’s Starlink, its most profitable business segment.
It might take a while, but the stock has home run potential
It might be a stretch to say that Rocket Lab will overtake SpaceX as the world’s largest space company, but there’s no shame in second-place in a trillion-dollar industry. Wall Street analysts estimate that Rocket Lab could earn approximately $914 million in revenue this year, and that’s not including Iridium, which generated $871 million in revenue in 2025.
Adding those together puts Rocket Lab’s total potential 2026 revenue in the neighborhood of $1.8 billion. Rocket Lab should continue to grow for years to come, especially once Neutron gets going. The stock’s valuation is the biggest short-term drawback. Rocket Lab currently trades at a market cap of $58 billion, more than 30 times its estimated 2026 revenue.
That’s far less expensive than SpaceX right now, but it could still drag on the stock’s near-term performance. That said, the space economy is just getting started, giving Rocket Lab plenty of opportunities to grow and generate potentially life-changing returns for investors over time.
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Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.
