What Happened
Growth Stock Valuation Raises Questions Amid Neutron Delays
Rocket Lab’s market value has reached $45 billion, approximately 59 times its trailing revenue of $769 million. Despite record revenue and backlog, the company remains unprofitable, with a $94 million net loss in the first half of 2026. The Neutron rocket, a key driver of future growth, is still unflown, with delivery to the launch pad targeted for the fourth quarter of 2026. The company’s acquisition of Iridium Communications is expected to close in mid-2027, adding new revenue streams but also debt and complexity. This development was reported by The Globe and Mail.