Rocket Lab Corporation (RKLB): A Bull Case Theory

We came across a bullish thesis on Rocket Lab Corporation (RKLB) on Rick Orford - Trading Stocks and Options For All’s YouTube. In this article, we will summarize the bulls’ thesis on RKLB. Rocket Lab Corporation (RKLB)'s share was trading at $72.32 as of February 6th.

Rocket Lab is widely misunderstood by the market, with investor attention overly focused on the delay of its upcoming Neutron rocket while missing the deeper strategic and financial progress underway. Rocket Lab is a vertically integrated space company that controls the full mission lifecycle, from rocket manufacturing and launch services to satellite components and on-orbit operations.

Its current Electron rocket serves the small satellite market reliably, while Neutron represents a strategic step into the medium-lift category, targeting customers that need flexibility without paying for oversized heavy-lift capacity. Although Neutron’s first launch was pushed from late 2025 to the first quarter of 2026, the delay is relatively modest, yet it triggered a sharp stock reaction as expectations had been tightly anchored to the original timeline.

Beneath the surface, Rocket Lab’s fundamentals continue to strengthen. Revenue rose 48% year over year to a record $155 million, with GAAP gross margins holding at a healthy 37%. The company also reported a $1 billion backlog, with more than half expected to convert within the next twelve months, signaling strong demand from both government and commercial customers. Losses narrowed meaningfully, beating analyst expectations on a non-GAAP basis, highlighting improving operating leverage even as the company invests heavily in growth.

Rocket Lab’s most powerful catalyst remains its vertical integration, which enables pricing power, margin control, and sticky customer relationships by offering a simplified, end-to-end solution. Neutron further expands its addressable market as constellation deployments and mid-sized payloads gain momentum.

Risks remain, including ongoing losses, rising operating expenses, and intense competition from entrenched players like SpaceX and Blue Origin. Even so, analysts maintain a moderate buy consensus, with meaningful upside potential if execution continues. Overall, Rocket Lab offers a high-risk, high-reward setup where strategic progress may ultimately outweigh near-term volatility.

Previously, we covered a bullish thesis on Rocket Lab USA, Inc. (RKLB) by Steve Wagner in May 2025, which highlighted the company’s accelerating Electron launch cadence, growing Space Systems backlog, and expanding defense exposure. RKLB’s stock price has appreciated by approximately 300% since our coverage. This is because the thesis played out as operational execution and backlog growth reinforced long-term confidence. Rick Orford shares a similar thesis but emphasizes the market’s misunderstanding of the Neutron delay and the value of vertical integration.

Rocket Lab Corporation (RKLB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held RKLB at the end of the third quarter which was 46 in the previous quarter. While we acknowledge the risk and potential of RKLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RKLB and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.