Wall Street Thinks Rocket Lab Is a Buy. Here's Why I'm Not So Sure.

Key Points The launch of its Neutron rocket was originally expected in 2025 but may slip again until 2027. The stock has fallen more than 50% from its all-time high of $151, set back in late May. These 10 stocks could mint the next wave of millionaires › It's no secret that Wall Street analysts are very bullish on Rocket Lab (NASDAQ: RKLB) . The majority rate the stock a buy with an average price target of about $109 per share. This is substantially higher than where the stock is trading as of this writing, at about $64. Rocket Lab also just posted record revenue numbers in its latest quarterly earnings. Revenue increased 62% year over year, the space company's backlog ballooned to more than $2.3 billion, and momentum is strongly on Rocket Lab's side. Still, I'm not quite ready to jump on board. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Let's start with the bottom line. Rocket Lab isn't close to profitable, and it looks like the prospect of becoming profitable is slipping further into the distance. The company's second-quarter earnings report showed total operating expenses accelerating from the year prior, reaching $142 million in the quarter and $274 million halfway through the year. Rocket Lab's management expects cash burn to remain elevated for roughly the two years after its Neutron's first successful flight. The Neutron inaugural launch keeps getting pushed back as well. Its original target launch was slated for 2025, but even its latest target of Q4 2026 seems likely to slip again to 2027. Image source: The Motley Fool. Rocket Lab is also facing significant integration risk at the moment, having completed two acquisitions in 2026 and about to close another deal with Iridium Communications , which will add even more complexity. Rocket Lab is positioning itself for immense growth in the coming years, particularly in a relatively nascent space. Still, profitability is getting pushed further out while the execution risk grows. I would like to see the company navigate these immediate issues before paying for a stock trading at an immense premium. Shares of Rocket Lab are trading at roughly 50 times its sales as of this writing. Don’t miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $591,141 !* Apple: if you invested $1,000 when we doubled down in 2008, you’d have $64,663 !* Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $395,625 !* Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor , and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of September 22, 2026. Catie Hogan 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 .

The launch of its Neutron rocket was originally expected in 2025 but may slip again until 2027.

The stock has fallen more than 50% from its all-time high of $151, set back in late May.

It's no secret that Wall Street analysts are very bullish on Rocket Lab (NASDAQ: RKLB) . The majority rate the stock a buy with an average price target of about $109 per share. This is substantially higher than where the stock is trading as of this writing, at about $64.

Rocket Lab also just posted record revenue numbers in its latest quarterly earnings. Revenue increased 62% year over year, the space company's backlog ballooned to more than $2.3 billion, and momentum is strongly on Rocket Lab's side. Still, I'm not quite ready to jump on board.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Let's start with the bottom line. Rocket Lab isn't close to profitable, and it looks like the prospect of becoming profitable is slipping further into the distance. The company's second-quarter earnings report showed total operating expenses accelerating from the year prior, reaching $142 million in the quarter and $274 million halfway through the year.

Rocket Lab's management expects cash burn to remain elevated for roughly the two years after its Neutron's first successful flight. The Neutron inaugural launch keeps getting pushed back as well. Its original target launch was slated for 2025, but even its latest target of Q4 2026 seems likely to slip again to 2027.