After a rough start to 2025, Rocket Lab (RKLB) is back in orbit, with shares now hovering near all-time highs as excitement builds around the company’s next-generation Neutron rocket.
RKLB jumped 9% on Monday, closing at a fresh record above $38. The stock held steady Tuesday and continues to trade near peak levels.
It’s now up more than 29% over the past month and 54% year-to-date, lifting Rocket Lab’s market cap to $17.9 billion.
The comeback hasn’t been easy. From January through early April, shares were nearly cut in half amid trade-war jitters and a weak earnings outlook.
But sentiment has flipped as investors refocus on Rocket Lab’s expanding government contracts and the Trump administration’s possible pivot away from relying on SpaceX.
All eyes on Neutron
Anticipation is building for the maiden flight of Rocket Lab’s Neutron rocket, slated for the second half of 2025.
The medium-lift vehicle will launch from a sea-based platform, with its first liftoff scheduled at the Mid-Atlantic Regional Spaceport in Virginia.
If successful, Neutron will push Rocket Lab into direct competition with SpaceX’s Falcon 9 for national security and deep-space missions.
The company already dominates the light payload niche with its Electron launcher. But Neutron marks a strategic leap into larger payloads and higher-stakes contracts.
As Investors Observer reported earlier, “The U.S. space industry is being 'de-Muskified.’”
That sentiment has gained traction, especially as tensions between Elon Musk and the Trump administration bubble up.
“This shift could create new opportunities for other space infrastructure companies, including Rocket Lab,” the outlet noted.
New NASA contract
Rocket Lab has also continued to win new government business.
It recently secured a contract from NASA for its upcoming Aspera mission, a long-duration project to study the Milky Way’s formation. The Aspera spacecraft is expected to launch next year.
Rocket Lab isn’t profitable yet, but its growth trajectory remains strong.
Q1 revenue rose 32.1% to $122.6 million. The company expects Q2 revenue to reach $135 million, a touch below estimates but still reflecting solid year-over-year momentum.
That follows a breakout 2024, when Rocket Lab’s revenue soared 78.3% to $436.2 million. Launch service sales climbed 74%, and space systems revenue jumped 80%.
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