I had around $300 in my brokerage from dividends about a year and a half ago and after scrolling reddit for cheap stocks I decided to buy 90 shares of RKLB with it. I’m currently up around 2000%(which I understand isn’t a whole lot $ wise) but I don’t really understand why it’s so popular.
I’ve heard it’s the company “selling shovels for the gold rush” in the space industry, but why are people bullish on space exploration? The only thing I can think of is Elon saying occupy mars, but that’s wildly unrealistic in my opinion.
I’ve been considering buying more, but I haven’t pulled the trigger because I don’t feel comfortable buying more without understanding the actual purpose of what they’re doing. Maybe I should do actual research, but I’ve done well with what I considered was basically a penny stock and now I’m seeing so much hype that I don’t really understand, so I’m between selling and buying more .
I own Rocket Lab, but why is it so hyped on reddit?
byu/bigpoopmaker859 instocks
Posted by bigpoopmaker859
21 Comments
SpaceX hype.
– Spatial exploration (NASA, public agencies)
Trusted partner for scientific missions, lunar programs, deep space exploration, recurring government contracts
– Satellite launches (public and private)
Core business today with high demand from communications, Earth observation, defense, and commercial constellations
– Precision launch specialization
Dedicated orbits for small and medium payloads, avoiding rideshare limitations
– Vertical integration
Designs and builds rockets, satellites, propulsion systems, and space components
– Neutron rocket
Expansion into larger payloads and higher value missions, broader market access
– Space infrastructure
Not just launches but long term spacecraft platforms and mission architecture
– Asteroid and lunar resources (long term)
Infrastructure provider rather than speculative miner, picks and shovels exposure to rare metals and in space economy
– Long term space growth play
Revenue today, scalability tomorrow, optionality for the next decade
Might have forgotten smth
What other companies can you name that are launching rockets with 100% mission success in 2025?
To be fair they’re beginning to launch a mission to colonize the moon starting next year so the space thing isn’t a far cry from reality not fantasy
They’re executing well in a big-time hype market. SpaceX rumored to go public at a very high valuation is making it popular with retail as one of the only ways to play the space launch market. It is somewhat detached from fundamentals though and they don’t have any sort of high margin business like Starlink. Space systems is a nice niche for them with higher margins and lower risk than launch, but that’s a crowded business. I think they’ve been fairly priced in as a defense contractor now. I don’t think they have the same sort of upside as a stock like ASTS with a Starlink-type/high-margin/high-moat TAM opportunity.
“Maybe I should do actual research”
Yeah, that’d probably be good. There was another thread today in here about $RKLB that I made a long reply to, maybe start there. Then go to the companies investors page and give it a look.
A rule of thumb is when you start to feel this way about a stock and your up 2000% it’s ok to secure some gains and let that stock cool down to buy in again, or minimize your position and with that profit get you another cheap stock that you feel has potential
Because it’s a great stock
Maybe due to spacex
Papa Musk announced SpaceX IPO at 1.5 trillion valuation
It’s like MNTS, but with earnings. Retailers looooovvve space stocks.
I made a killing shorting MNTS a few year ago, it’s not that difficult to see the difference when you look at RKLB earnings growth.
Sell 10% of your stake – you’ve locked in doubling your money.
Then feel free to do invest the rest however you choose.
I’ll suggest you take out the principal amount and may be half of the gains and ride the rest. It’s poised for good growth for next decade.
100+ years ago they needed railways to move shit around and people made a lot of money.
Ps. Land is limited.
Bots and algorithms push stocks on Reddit to make suckers buy in at the peak just before the big boys cash out.
Nearly every Reddit hyped stock crashes
Space exploration has massive territory and monetary potential. All of the land on earth has already been staked so most resources, you can’t even touch because you don’t own that land. If you can mine it, people live on them so you have to follow regulations when trying to get to the resources. Even if they don’t live close to the site, waterways will usually carry the pollutants down disabling/destroying your worker populations. It causes a social ruckus in addition to making the life of some humans absolute shit. In space that doesn’t matter. They can use nukes if the situation calls for it.
The yields are absolutely out of this world. Asteroids and comets are always zooming around and some asteroids are just metal balls filled with enough precious metal resources that alone exceeds the Earth’s economy. It would be enough metal to last humans multiple lifetimes at our current rates of consumption. There are also other natural resource rich rocks just hurtling around space ripe for the taking.
I think it should be a popular stock because launching things into space is in the national security interest. Yes SpaceX is very dominate, but when it comes to national security you need competition and options. You need multiple supply chains for redundancy. If something happens to SpaceX the US still needs the ability to get to space. Blue origin is probably a great investment but so it RKLB. They can launch things as demonstrated. The ULA Vulcan seems to be having difficulties and that is bad for the national security.
RKLB is a war contractor and can do something very important that not a lot of companies can.
I think the reality is no one have an idea how much money rocket lab will make in the future. So anyone can make up dreams and stock will keep going up.
I think basically every flight they have is booked years in advance. All kinds of companies and countries want to put things in space and they are one of the few ways to do it.
We like space
I get your point. I to did not invest in rklb as I don’t understand it/don’t think it’s possible to occupy Mars. Another thought is to send solar panels to space for energy and transmit it back to earth and so on. I don’t see this working either. It’s a speculative stock and I’m sure the trump administration got something to do with it, as well as space X IPO, hype and so on. I just don’t think human life can thrive outside earth, and if scientists figure out how to alter life to that extent, I don’t think it’s in 2025. These space stocks are based on future expectations and earnings. I don’t even think they are profitable yet, though I may be wrong.
I’m also having the same feeling for AI stocks, not like I’m not invested in them; I am. But I just don’t see or understand the need/use case to spend billions in AI infrastructures with high leverage. I genuinely won’t pay for chatgpt, nor gemini and so on if these companies tries to start making revenue of these things but it’s just my thought. I’ll see how 2026 goes but I do think this year has been very speculative. Plus with tensions between China and Taiwan, time will tell where the economy is heading.
Let’s not forget also that high demand makes prices rise. So it has to be hyped for more demand and higher prices.