Rocket Lab Corporation (RKLB): A Bull Case Theory

 We came across a bullish thesis on Rocket Lab Corporation on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on RKLB. Rocket Lab Corporation's share was trading at $65.31 as of October 8th.

RocketLab is evolving from a traditional launch provider into a fully integrated constellation operator and owner, positioning itself to monetize long-term space assets. While its Electron rocket business generates revenue, the real growth and value lie in the Neutron platform, which can carry roughly 43 times more mass than Electron. Just three Neutron launches could match a year’s worth of Electron revenue, highlighting the transformational potential of this platform.

The company’s cash from operations remains negative due to accelerating CapEx, but rising revenue and improving gross margins indicate pricing power and operational sophistication, particularly in managing the complexity of Neutron and integrating components such as solar panel technology through its Space Systems division.

CEO Peter Beck has affirmed that the critical infrastructure for Neutron is largely in place, including engine production and recovery systems, paving the way for multiple annual launches. Strategic acquisitions, including Mynaric for laser-based communications and Geost for missile-tracking satellites, further enhance RocketLab’s ability to generate perpetual cash flow from constellation operations, shifting the business model from one-off launch revenue to recurring asset-based earnings.

The thesis rests on two main factors: reducing Neutron costs via reusability and effectively allocating capital between platform development and revenue-generating assets. With a balance sheet showing cash just above debt, RocketLab has financial flexibility to support its ambitious expansion. If the company executes on cadence, cost reductions, and customer acquisition, it could achieve meaningful operating leverage and strong unit economics.

While near-term financials may remain challenged due to Neutron investments, the long-term opportunity in the expanding space industry and RocketLab’s proven operational execution make it a compelling, high-upside investment with transformative potential.

Previously we covered a bullish thesis on Rocket Lab USA, Inc. (RKLB) by Steve Wagner in May 2025, which highlighted strong Electron launch cadence, Space Systems growth, and Neutron’s potential. The stock has appreciated approximately 218% since coverage as operational execution validated the thesis. The thesis still stands as long-term space and defense opportunities remain. Antonio Linares shares a similar bullish view but emphasizes Neutron’s transformative revenue and perpetual cash flow from acquisitions.

Rocket Lab Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held RKLB at the end of the second quarter which was 31 in the previous quarter. While we acknowledge the potential of RKLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.