We have just released our list of the 10 best satellite and space concept stocks that billionaires are buying, and Rocket Lab USA, Inc. (NASDAQ: RKLB) ranks seventh on that list.
Over the past few years, space and satellite companies have transformed from being viewed as speculative meme stocks into an investable sector. Companies in this industry are steadily growing revenue and securing large volumes of high-value government and defense contracts, with orders tightly linked to their growth narratives.
The biggest event in the space sector this year was the largest IPO in history completed in June by Musk's rocket and aerospace company; at the time of listing, the company reached a market value of $1.77 trillion, placing it among the highest-valued companies globally. However, the stock has had a volatile ride since going public. As of the close on November 6, its share price had fallen more than 36% from its post-June IPO high and was down 10% since its Nasdaq listing.
This mirrors the broader space sector. In 2026, space sector stocks experienced sharp swings: they surged in the first half on AI enthusiasm and IPO expectations, then saw a significant pullback in the second half. Even so, the macro backdrop still offers reasons for optimism. Morgan Stanley expects the global space industry to continue expanding from $350 billion, with governments around the world investing heavily each year in next-generation space infrastructure.
According to Insider Monkey, as of the end of the second quarter of 2026, a total of 16 billionaires held shares in Rocket Lab. With its business expansion and high growth potential, the company continues to attract investors.
Driven by strong demand across all business lines, the company's second-quarter revenue hit a record high of $234 million, up 62% year over year and up $34 million quarter over quarter; its order backlog surged 137% year over year to $2.36 billion. Diluted loss per share was $0.08, compared with a loss of $0.13 per share in the same period last year.
In June of this year, Rocket Lab announced a cash-and-stock acquisition agreement to acquire Iridium Communications, with an enterprise valuation of about $8 billion. The deal will integrate Rocket Lab's rocket launch capabilities and satellite manufacturing business with Iridium's global satellite communications network, creating a vertically integrated space company with end-to-end capabilities spanning satellite development, launch, and in-orbit operations. The transaction is expected to close in mid-2027.
However, the company still faces some challenges that could weigh on market sentiment in the short term. Due to manufacturing defects, the maiden flight of the company's next-generation large rocket Neutron has been delayed from the fourth quarter of 2026 to early next year; following this news, the stock plunged nearly 30% over the past month.
While we acknowledge the investment risks and growth potential of Rocket Lab (RKLB), we believe some AI infrastructure stocks offer stronger long-term upside and more attractive entry prices. If you are looking for an AI name that is superior to RKLB, serves as a key "toll booth" for AI, and can be called one of the world's most important companies, you can refer to our dedicated research report.
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