The Best Space Stock to Invest $500 in Right Now

The new era of space exploration is here, driven by private enterprise. Commercial space companies are making key advancements in launch technology and spacecraft design, cutting costs and breaking barriers.

Meanwhile, NASA is focused on deep space exploration. Its Artemis program aims to send humans to the Moon and eventually to Mars. This makes the new space frontier an appealing investment opportunity.

One company that is making strikes is Rocket Lab (NASDAQ: RKLB). The company provides launch services and space components and is rolling out its larger launch vehicle sometime next year. This has the potential to open up a huge revenue stream. If you have $500 and are looking to invest in the space economy, here's why Rocket Lab is a buy today.

Rocket Lab is the second-most-used launch company in the U.S.

Rocket Lab's business comprises two components: launch services and space systems. In its launch services business, the company uses its small-lift Electron rocket to make frequent, cost-effective missions for clients launching small satellites into orbit. Through mid-November, Rocket Lab has made 75 successful launches with its flagship Electron rocket.

Rocket Lab is the second-most-used launch company in the U.S., behind SpaceX, which has made over 600 launches. To better compete with SpaceX and to secure larger contracts from NASA and other satellite companies, the company has developed Neutron, its medium-lift launch vehicle. Neutron is reusable and designed to carry payloads up to 13,000 kg to low Earth orbit, aiming to unlock six times the revenue and profit potential compared to Electron.

The latest update on its Neutron rocket

The timeline for Rocket Lab's Neutron medium-lift rocket has been a focal point among investors. Due to its potential to unlock larger revenue streams, the launch will be a significant driver of Rocket Lab's expanding launch business.

Rocket Lab updated its Neutron schedule and now anticipates the rocket will arrive at Rocket Lab Launch Complex 3 in the first quarter of next year, with the first launch following thereafter, pending successful qualification testing.

Image source: Rocket Lab.

The company had hoped to launch this year, but the recent schedule shift pushes the first launch into 2026. Morgan Stanley noted that the delay "may have been more modest than feared" and that the market is "largely shrugging off" the shift. Stifel views the delayed launch as a "more realistic goal, prioritizing mission success over speed."

Its space systems business is humming along

While the launch business is essential, its space systems segment is larger. This business is benefiting from the Space Development Agency program being in full production mode.

Rocket Lab recently announced expanded U.S. investments to bolster semiconductor manufacturing capacity, supported by a $23.9 million award from the Department of Commerce through the CHIPS and Science Act. These investments are to ensure supply chain security for space-grade solar cells and electro-optical sensors for national security missions.

Rocket Lab is one of only two U.S. companies specializing in the production of high-efficiency, radiation-hardened, space-grade compound semiconductors. The company expects to double the production capacity of compound semiconductors and space-grade solar cells, from 20,000 wafers per month to nearly 35,000.

A solid stock for growth investors

Rocket Lab is also the beneficiary of a recent executive order from the Trump administration aimed at reducing regulatory hurdles, accelerating launch approvals, and advancing spaceport infrastructure for the commercial space industry.

Although the company pushed back the launch of its Neutron rocket, the delay was better than expected. When it launches, it will open up new revenue streams and deliver higher margins in the future. seo

Rocket Lab is making strides; its space systems business is booming, and its launch business is poised for explosive growth. Given its role in the growing space economy, I believe Rocket Lab is a solid stock for long-term growth-focused investors to buy today.

Courtney Carlsen has positions in Morgan Stanley and Rocket Lab. The Motley Fool has positions in and recommends Rocket Lab. The Motley Fool has a disclosure policy.