Rocket Lab's share price surged on Monday.
Rocket Lab (RKLB dropping by 5.83%) witnessed a 3.5% surge in its stock value until 9:45 a.m. ET on Monday, following its groundbreaking announcement. Rocket Lab made history by launching two rockets from two distinct launch pads located in two different hemispheres within a 24-hour timeframe for the first time ever.
Highlighting the achievement, the company noted that this marked a "new record for the quickest launch turnaround." Moreover, this event has elevated Rocket Lab's annual launch count to 14 launches, representing a 40% improvement over the 10 launches conducted in 2023.
There's still time left in 2024!
Rocket Lab Closing In on SpaceX
While Rocket Lab didn't explicitly reference it, SpaceX carried out a similar feat nearly three years ago in December 2021. SpaceX followed up one launch from Vandenberg with another from Cape Canaveral within the same 24-hour window. Although the launches did not take place in different hemispheres (SpaceX only operates from U.S. sites), the launches were succeeded at least from different coasts.
The hemispherical distinction holds a significant impact. SpaceX might dominate the U.S. space launch sector, but Rocket Lab's presence in both the U.S. and Asian markets due to its close proximity to customers in these regions gives it an edge in both markets, potentially offering an advantage over SpaceX in the Asian market.
Furthermore, Rocket Lab was established in 2006, four years after SpaceX's inception. Although Rocket Lab may have only achieved this milestone three years after SpaceX, it indicates that Rocket Lab is gradually closing the gap with its colossal competitor.
Is Rocket Lab Stock Worth Investing In?
Admittedly, concern over Rocket Lab stock's current valuation still lingers in my mind. Valued at 31.5 times sales currently and with ongoing losses, I find it challenging to label Rocket Lab stock as a "bargain." Nevertheless, one aspect that Rocket Lab has to offer from an investor's perspective is that it is a publically traded entity, whereas SpaceX remains a private company.
Investors with an interest in leading space rocket companies can definitely consider purchasing some shares of Rocket Lab. However, if you prefer SpaceX, you might have to wait for it to go public.
Rocket Lab's achievement of launching two rockets from different hemispheres within a day has attracted interest in its finance sector. Investors looking for opportunities in leading space rocket companies might find Rocket Lab's publicly traded status appealing, despite its current valuation of 31.5 times sales.
Given Rocket Lab's gradual closeness to SpaceX in terms of launch count and market presence, some investors might see potential in its stock as an alternative to waiting for SpaceX to go public.
