Space stocks surged after SpaceX's June IPO, but since then SpaceX shares have swung between $105 and $225 and Rocket Lab has fallen 65% from its June peak near $150. SpaceX's launch services revenue reached $1.8 billion, up 6%, while Starlink grew 69% to $5.2 billion with 13.6 million consumer broadband subscribers, and its AI segment, now called Super Intelligence, reached $7.6 billion, helped by an $84.5 billion compute leasing deal with Anthropic. Rocket Lab focuses purely on the space economy, relying on its Electron rocket, which can carry up to 660 pounds to low Earth orbit, and holds a backlog of nearly $2.4 billion, but its Neutron rocket has been delayed to 2027. SpaceX's $2.2 trillion market cap compares with $30 billion for Rocket Lab, and the two trade at about 70 and 40 times trailing sales. The author says SpaceX suits investors seeking broad exposure to AI and communications, while Rocket Lab is the purer aerospace option, though further Neutron delays could weigh on its shares in the near term.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SpaceXIPOvaluationRocket Labaerospace
Open a keyword to see other news on the same topic.
Related news
- If SpaceX Stock Falls Below $135, Here's the Move I'd Make
SpaceX (SPCX) went public on June 12 at $135 per share, reached a record close of $211.39 on June 16, and now trades at $145. Revenue rose 33% to $18.67 billion in 2025, and Elon Musk has said it could reach $1 trillion by 2030. At its peak, the $2.64 trillion market cap was 58 times the $45.3 billion in revenue analysts expected for 2026. Starlink's $2.84 billion operating profit in the first half of 2026 was wiped out by operating losses of $1.20 billion in space and $3.73 billion in AI, while rising rates, Treasury yields and lockup expirations from August weighed on the shares. The author would not buy if the stock dips slightly below its IPO price, to avoid panic selling, but would consider nibbling if it falls much lower, with third-quarter results due after the close on Oct. 20.
- Why Rocket Lab Stock Plummeted as Much as 16% Today
Rocket Lab (RKLB) pushed back the arrival of its Neutron reusable rocket at the launchpad to 2027, from the fourth quarter of 2026 previously, after finding a propellant dome manufacturing issue that the company says it has since resolved. Shares fell as much as 16% and were down 9.8% at 1:48 p.m. ET, after KeyBanc cut its price target to $100 from $135 and Clear Street cut its target to $105 from $129, with both keeping their ratings. Based on the $59.18 close the previous day, the $100 and $105 targets imply upside of 69% and 77%. The article notes Rocket Lab ended the second quarter of 2026 with a record backlog of $2.36 billion, pointing to strong demand for its launch services.
- Rocket Lab’s stock slides as the company pushes back Neutron’s first launch
- History Says to Buy These Space Stocks in a Market Crash
The article notes the S&P 500 is up roughly 12% in 2026 despite risks from persistent inflation, high bond yields and elevated valuations. It argues two space stocks could be attractive if the market suffers a major pullback. SpaceX (SPCX), with a market capitalization of roughly $1.92 trillion, trades at about 43 times expected sales; analysts expect revenue to grow roughly 141% to about $45 billion this year, though the company is currently operating at a loss. Rocket Lab grew second-quarter revenue roughly 62% to about $234 million, with a market capitalization of roughly $30.4 billion and a valuation of about 32 times expected sales, and it is still posting net losses.
- History Says to Buy These Space Stocks in a Market Crash
The S&P 500 is up roughly 12% in 2026 and the Nasdaq Composite roughly 12.5%, after gaining 71% and 74% over the last half-decade. The author cites risks including persistent inflation, high bond yields, elevated valuations and AI financing concerns, and suggests a sharp market pullback could create a chance to buy space stocks. SpaceX (SPCX), with a market capitalization of roughly $1.92 trillion, trades at about 43 times this year's expected sales of roughly $45 billion, and it is currently operating at a loss with capital spending likely to keep surging. Rocket Lab grew revenue about 62% year over year in the second quarter to roughly $234 million, with a market cap near $30.4 billion, about 32 times expected sales, and still posts sizable net losses.
- SpaceX Burned More Than $9.9 Billion of Free Cash Flow in a Single Quarter. Here's How Long Its $85.7 Billion IPO War Chest Actually Lasts.
SpaceX reported second-quarter earnings with $9.9 billion in negative free cash flow, driven by heavy capital spending after its $85.7 billion IPO, the largest ever. AI infrastructure revenue reached $7 billion in the quarter ending in September, up from $359 million a year earlier, while capital expenditures of $19.5 billion are expected to roughly double to about $40 billion. The article says the IPO funds would run out within two years at the current burn rate, so positive free cash flow will be needed. Musk targets annual recurring revenue of $500 billion to $1 trillion by the end of 2027, compared with $58.3 billion in the latest quarter, a goal the author considers unlikely. The author also notes a market cap of $2.15 trillion and a price-to-sales ratio of 69, and concludes the stock is likely overvalued and risky.
Related markets
Latest news
- How Investors May Respond To Qualcomm Stock Earnings Outlook Concerns
QUALCOMM affirmed a quarterly cash dividend of US$0.92 per share for December 2026, while diluted EPS fell 16.67% year on year, with a P/E of 20.00, a dividend yield of 2.03% and weaker operating margins. The company is cutting its global workforce and faces pressure in smartphones and Apple-related revenue, while committing capital to data center chips, robotics and AI partnerships with Amazon and Apple. The article notes that two hyperscaler customers have production underway, with revenue targets for fiscal 2027 and 2029. Under the current analyst narrative, revenue is projected at US$60.0b and earnings at US$11.5b by 2029, based on 10.8% yearly revenue growth, and fair value implies about 10% potential upside to the current price. The most optimistic analysts forecast US$66.9b of revenue and US$11.8b of earnings by 2029.
- 1 Red Flag That Keeps Me From Buying AMD Stock
The author says they are not planning to buy AMD stock because it looks too expensive, even though AMD's products are now more competitive alternatives to Nvidia's AI computing units. AMD trades at 130 times trailing 12-month earnings and 67 times forward earnings, well above the 25 to 35 times the author considers typical for a big tech company in the AI race. At 32 times next year's earnings, the article argues the stock already prices in most of the growth expected for 2027, which could lead to a sizable sell-off or slower gains as the stock grows into its valuation. The article compares this with Nvidia, which trades at 27 times trailing earnings.
- Vietnam Stock Technical Analysis: Week 26-30/10/2026
The technical analysis for the 23/10/2026 session shows VN-Index rising for a fourth straight session and approaching the SMA 50-day and SMA 100-day lines, with trading volume still above average. The index is above the Bollinger Bands middle line, while the Stochastic Oscillator and MACD both turned up after crossing above their signal lines. HNX-Index traded sideways with a small-bodied candle and lower volume, and is testing the Bollinger Bands middle line, with MACD also rising after crossing its signal line. The article says that if these positive signals hold, the short-term outlook for both indices would improve.
- Is the AI Bubble About to Burst? Plus, Apple Bets on Doorbells.
The Motley Fool podcast discusses whether the AI boom is becoming a bubble and what could cause it to burst. Ray Dalio is cited as saying an AI bubble could burst in the coming period, while the host sees timing as the key question and says debt is still manageable for now. The episode notes that SpaceX is seeking another $40 billion in debt and analyzes Google's multibillion-dollar nuclear power deal with Constellation Energy and the large energy demands of data centers. It closes by discussing Apple's push into smart-home products, including doorbells, cameras and a new home hub.
- SpaceX’s $1 Trillion Revenue Ambition: Can Elon Musk Deliver?
The Motley Fool Hidden Gems Investing podcast discusses Netflix's slowing growth: revenue still rose at a double-digit pace and margins came in somewhat better than guided, but ad sales slowed and the stock fell only about 3% during the session. The hosts see the quarter as a sign Netflix has entered a mature phase, and note the company has parted ways with its content chief. Full-year revenue growth is expected to ease to 13% in 2026 from 16% in 2025, and shares trade below 20 times earnings. The episode also lists topics including SpaceX's AI transformation, Musk's trillion-dollar ambitions, AI infrastructure risks and a Tesla-SpaceX merger, but the available transcript focuses mainly on Netflix.
- 2 Warren Buffett Artificial Intelligence (AI) Stocks I'd Buy Right Now and Never Sell
The article argues that Apple and Alphabet, two holdings in Warren Buffett's Berkshire Hathaway, suit long-term investing because their businesses do not depend entirely on AI succeeding. Apple has a loyal customer base and a Services segment that generates recurring revenue, and although Berkshire has reduced its position over time, Apple remains its largest holding. Alphabet, which owns Google and YouTube, is using its Gemini AI models as a new growth driver across Search, Workspace, Android and Google Cloud, while its core businesses are already strong on their own. According to the author, the biggest risk is that investors overestimate how much profit individual companies will earn from AI.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.