Core Insights - Rocket Lab has shown significant stock performance, with a 360% increase in 2024 and 174% in 2025, turning a $10,000 investment three years ago into $186,880 [2] - The Defiance Drone and Modern Warfare ETF (JEDI) is recommended as a better investment option, providing exposure to Rocket Lab and other companies in related industries [3][15] Company Overview - Rocket Lab specializes in launch services, rockets, space vehicles, and satellite equipment, becoming a key player in both U.S. and international space programs [2] - The company has secured substantial contracts, including an $816 million contract for missile-tracking satellites and a $515 million contract for a satellite communications network for the U.S. military [12] ETF Details - The JEDI ETF focuses on companies involved in military drones, AI-driven warfare, space products, military robotics, and cybersecurity, with at least 50% of revenue coming from these sectors [5] - Rocket Lab is the top holding in the JEDI ETF, accounting for 8.66% of the fund, which includes 26 stocks with a maximum 10% weighting per stock to ensure diversification [6][7] Performance Metrics - The JEDI ETF has shown strong performance, with Rocket Lab's one-year performance at 180.8%, while other top holdings like Saab AB and Kratos Defense have outperformed Rocket Lab [7][8] - The ETF's expense ratio is 0.69%, which is considered reasonable given the potential returns [15] Market Context - The U.S. defense budget is projected to increase from $900 billion in 2026 to $1.5 trillion in 2027, contributing to the profitability of Rocket Lab and other companies within the JEDI ETF [14]

Core Insights - Rocket Lab's stock increased by up to 5% following the announcement of record revenues in Q3, driven by an increase in launch deals and a growing backlog [1] Financial Performance - The company reported Q3 revenue of $155 million, exceeding the analyst forecast of $152 million and representing a 48% increase from approximately $105 million a year ago [2] - Rocket Lab posted a smaller-than-expected loss of 3 cents per share, compared to the anticipated loss of 10 cents per share [2] - The company reported an adjusted EBITDA loss of $26.3 million, which was higher than the previously forecasted loss range of $21 million to $23 million and above the analyst expectation of $22.2 million [7] Future Guidance - Rocket Lab provided strong guidance for the current quarter, expecting revenues between $170 million and $180 million, slightly above the analyst forecast of $172 million [3] - The company anticipates adjusted EBITDA losses in Q4 to range between $23 million and $29 million, exceeding the $13 million loss forecast by analysts [7] Operational Highlights - Rocket Lab has a record backlog with 49 rocket launches on contract, having signed 17 new deals in Q3 and plans to complete over 20 launches by year-end [3] - The company is on track to achieve a new annual launch record, as stated by CEO Peter Beck [4] Market Context - Competition in the space technology sector is intensifying, with increased reliance on independent contractors by the U.S. government and NASA, including competitors like SpaceX [5] - Rocket Lab's stock has more than doubled this year and surged nearly 270% over the last twelve months, despite a 13% pullback in November amid broader market conditions [6]