roger

SpaceX is dominating. Why does $RKLB Rocket Lab even exist? @RocketLab exists because the Small Rocket Market is UNDERSERVED. It's a niche market but it's growing. Rocket Lab is carving out its niche by offering RAPID, reliable, and precise small satellite launches. While SpaceX dominates with its heavy-lift rockets, Rocket Lab excels in quick deployments and tailored missions for smaller payloads, making it a go-to for specialized and time-sensitive projects. Think of Rocket Lab being an Uber whereas SpaceX is a Bus. I will go into details later. Since we are all interested on $RKLB as investments. Let's go over some financials first. Growth: Rocket Lab has shown impressive revenue growth, with its most recent quarter reporting a 71% year-over-year increase to $106 million, marking its highest revenue quarter to date. The company has a substantial backlog of $1.07 billion 😱 with 42% expected to be realized within the next 12 months, indicating strong future revenue potential. Rocket Lab is not yet profitable, with a net loss of $41.631 million in its latest report. Analysts expect Rocket Lab to achieve profitability within the next three years, with positive earnings per share projected by 2026. Some stats. Rocket Lab has conducted 54 Electron launches, with 50 successful missions (92.6%). Electron rocket is the second-most used orbital rocket in the U.S., trailing only SpaceX's Falcon rockets and has delivered 198 satellites to orbit. The Rise of the Small Rockets. Have you heard of the Moore's Law? Moore's Law is the observation that the number of transistors will double every two years (transistors gets much smaller). This idea also burst into satellite industry in the form of small satellites: tiny, light satellites that are just as capable, if not more so, than older, bigger ones. In 2023, 97% of all spacecraft launched were smallsats. It's a shocking stat and despite the suitability of smaller rockets for smallsat launches, the industry still favors larger rockets like SpaceX's Falcon 9 due to their lower costs. SpaceX's Transporter rideshare missions offer very competitive rates, around $5,500 per kilogram, making them more economical than Rocket Lab's offerings, which are nearly five times higher. But the keyword here is the 'Rideshare.' Just as people often dislike sharing a ride, even satellites aren't fans of it 😂 The logistics and scheduling of rideshare missions mean all satellites are "dumped" in a single, often less-than-ideal orbit location. Satellites then need extra propulsion to reach their desired orbits, adding to the hassle. Imagine taking a bus (Falcon 9) with 10 others, and you're all dropped at one stop and each of you need to walk or rent a bike/scooter to reach home, making it cost-effective but not personalized. Not everyone likes it. Conversely, taking an Uber (Electron) takes you directly to your destination. It's ready on short notice and tailored to your needs. People often pay 5-10 times more for this convenience, much like how small rockets offer more flexibility and quick access to space for urgent missions, unlike their larger counterparts. In essence, small rockets, like Uber, provide quicker, more tailored access to space, whereas rideshare missions (like Falcon 9) require waiting for a full load and aren't suitable for time-sensitive or custom deployments such as replacing damaged satellites or even responsive military space mission. That is $RKLB Rocket Lab's advantage and they are the undisputed King of Small Rockets. Have I mentioned that the Electron's entire structure is crafted from carbon composite using a massive 90-ton 3D printer? This results in incredibly lightweight tanks that are 100 times stronger than steel. Definitely a topic worth diving into in another post! But wait, there's more! Rocket Lab is gearing up to launch Neutron, a medium-lift rocket, in about 8 months. This move is a direct shot at SpaceX's Falcon 9. We'll definitely have to delve into that in another post! 😂 Lastly, it's likely we'll see some talent migrating from @SpaceX to Rocket Lab. Why? Well, SpaceX remains a private company, while Rocket Lab is public. Many engineers may be drawn to Rocket Lab due to the allure of stock grants and potential for growth. But that's also discussion for another time! So much discuss. Rocket Lab is undeniably a captivating company, and the future of $RKLB looks incredibly promising and if their Neutron rocket launches successfully, we could witness a monumental shift in the space industry landscape. Wen Moon? 🚀 $TSLA $ASTS $LUNR $RDW $SATS $SIDU $MDA $PLTR If you liked my write-up, spam repost! 👇