Olena Bartienieva
Investment Thesis
Rocket Lab (NASDAQ:RKLB) is currently experiencing strong growth and is also a huge hit on Twitter and Seeking Alpha. Space is a very attractive market that is expected to grow from $350 billion in 2016 to over $1
Rocket Lab: Valued Like SpaceX, But No FCF Yet; Hold
Summary
- Rocket Lab offers low-cost space access with strong revenue growth and a vertically integrated model, targeting both commercial and government clients.
- The company boasts a $1.07 billion order backlog and $517 million in cash but currently operates with negative free cash flow.
- Competition with SpaceX and the broader government vs. private sector dynamic are key factors in the space industry landscape.
- While Rocket Lab's long-term vision is compelling, investors must weigh its lack of profitability and cash flow against its growth potential. I am staying on the sidelines for now.
As a 21-year-old student passionate about stock analysis, I provide in-depth equity research and market insights. With a solid grasp of financial trends, I aim to offer actionable investment ideas and identify growth and value opportunities. Follow me for insightful analyses to navigate the world of investing.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.