RKLB

Rocket Lab faces new manufacturing setbacks with its Neutron rocket, adding uncertainty to launch timelines and costs. The delays are forcing investors to reassess growth forecasts and may impact cash flow timing, raising questions about the company's long-term valuation and shareholder returns.

Cathie Wood's Ark Invest is reducing its Alphabet position while increasing bets on Rocket Lab despite the latter's Neutron rocket launch delay to 2027. Alphabet shows strong AI monetization through search and cloud growth, while Rocket Lab trades at a premium valuation with significant execution risks dependent on Neutron's commercial success.

The article suggests that SpaceX and Rocket Lab would be attractive buying opportunities during a market crash despite their currently high valuations. Both companies are experiencing rapid growth but trade at elevated multiples (SpaceX at 43x sales, Rocket Lab at 32x sales) and operate at losses, making them vulnerable to significant pullbacks in a market downturn.