Rocket Lab: Is It Finally Time to Buy Below $60?

Rocket Lab (RKLB) has seen its stock plummet from a 52-week high of $151 to under $60, a decline of over 60%. The catalyst was the company's announcement that the first launch of its highly anticipated Neutron rocket has been pushed to 2027, a significant delay from earlier expectations.

The delay stems from a defect in the rocket's propellant dome, which posed a risk of catastrophic failure on the launch pad. While the news shocked investors, the decision to delay was a prudent safety measure rather than a fundamental failure. Rocket Lab is prioritizing reliability over speed, a necessary approach in the complex world of rocket science.

Despite the setback, Rocket Lab's business fundamentals remain strong. The company's backlog grew to $2.36 billion as of Q2 2026, up 137% year-over-year, and includes over 90 launches across its Electron, Neutron, and HASTE vehicles. Management expects to recognize about 45% of this backlog as revenue within the next year.

Additionally, Rocket Lab signed its largest commercial Electron deal ever in September—a 20-launch agreement with Synspective—demonstrating continued demand for its services. The Neutron delay does not affect these existing contracts or the company's ability to generate revenue from its current offerings.

The market's reaction to the Neutron delay has been severe, but it's important to separate the stock price from the company's intrinsic value. The delay does not erase Rocket Lab's $2.36 billion backlog or its long-term opportunity to compete with SpaceX in the medium-lift launch market. Neutron remains a key growth driver, and once it becomes operational, it could unlock significant new revenue streams.

At the current price, Rocket Lab has a market cap of about $35 billion, which values the stock at roughly 27 times Wall Street's revenue estimates for next year (~$1.3 billion). While not cheap, this is the most attractive valuation the stock has offered in months. For a company with a strong backlog and a clear path to capturing more of the growing space economy, this multiple could prove reasonable.

The space industry is still in its early innings, and Rocket Lab is one of the few publicly traded pure-play space companies with a proven track record. Its Electron rocket is already a reliable workhorse for small satellite launches, and Neutron will position it to compete for larger government and commercial contracts. The delay is a bump in the road, not a dead end.

Investors who have been waiting for a better entry point may find this pullback appealing. However, it's essential to recognize the risks: Neutron could face further delays, competition from SpaceX is intense, and the company is not yet profitable. But for those with a long-term horizon, the potential rewards may outweigh these risks.