A Motley Fool contributor says Rocket Lab could outperform SpaceX over 10 years, citing about 870% revenue growth since 2021, a $2.36 billion backlog and a lower trailing price-to-sales ratio (56 versus SpaceX’s 94). Still, the writer says Rocket Lab stock is one to avoid now.
Rocket Lab combines Electron launches for satellite companies and the U.S. government with space-systems manufacturing, including satellites, communications equipment and solar arrays. The contributor says its Neutron rocket, expected to debut later in 2026 or early 2027, could help it compete for payloads. The article says an Iridium Communications acquisition was expected to close soon; if completed, it would move Rocket Lab into satellite internet.
The contributor estimates Rocket Lab could grow revenue more than tenfold, to $10 billion over the next decade. He warns that ongoing share sales could dilute shareholders. In his scenario, a $50 billion market capitalization in 10 years at today’s share price would equal five times that revenue; he says the space sector’s low margins make this a reasonable, rather than compelling, valuation.
