This Space Stock Keeps Rocketing to New All-Time Highs. Should You Buy It Here?

Core Viewpoint - Space stocks, particularly those involved in government contracts, can offer compelling returns for investors, with Rocket Lab being a notable example due to its recent successes and contracts [1][2]. Company Overview - Rocket Lab (RKLB) has completed over a dozen successful launches in 2023 and recently secured a contract with the Japan Aerospace Exploration Agency [2]. - The company, based in Long Beach, California, provides launch services and has a market capitalization of $33 billion, offering launch-on-demand services with three launch pads and 132 annual launch slots [3][4]. Financial Performance - Rocket Lab's stock has increased by 183% year-to-date, significantly outperforming the Nasdaq Composite, which is up 18% [5]. - In the second quarter, Rocket Lab reported $145 million in revenue, a 36% increase from the previous year, and increased gross profit from $27.6 million to $46.4 million. However, operating expenses rose sharply from $70.4 million to $106 million, resulting in a quarterly loss of $59.6 million, worse than analysts' expectations [6][7]. Market Sentiment - Despite not yet turning a profit, Rocket Lab's price-to-sales ratio stands at 52.5, indicating high investor expectations for future growth [6].