rocket

NuScale Power (SMR -8.95%) stock has had a breakout year. Shares are up more than 170% since the start of 2025. It hasn’t been a smooth ride for shareholders, though. NuScale stock has plunged about 40% twice just since January.

This week was another turbulent period for the stock. As of late Thursday, NuScale Power shares are 15% off this week’s highs, yet still up by 24.2% since last Friday’s close, according to data provided by S&P Global Market Intelligence.

Image source: Getty Images.

NuScale Power’s Trump tailwind

NuScale has been a big beneficiary of what it calls “multi-billion dollar federal support.” Several executive orders signed by President Trump earlier this year have boosted the nuclear power sector. Even prior to the current Trump administration, bipartisan passage of the ADVANCE (Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy) Act of 2024 has helped streamline approvals by the National Regulatory Commission for faster deployment of nuclear power projects.

This week another federal department spurred investors to jump into NuScale Power stock. The U.S. Army announced the launch of the Janus Program. The initiative is meant to fast-track the installation of commercially owned and operated small nuclear reactors to provide energy to domestic military installations.

Investors should be wary of jumping into NuScale stock after this week’s surge, though. While it has just begun generating revenue from a Romanian power project, investors have pushed its enterprise value to over $6.5 billion. Consider that revenue for the second quarter was just $8.1 million. Investors who believe in the future of modular nuclear reactors should still consider it a speculative investment.

After a stock skyrockets by around 500% in just 12 months, as Rocket Lab (RKLB -3.21%) has, it’s only natural to wonder if it rose too quickly, and in so doing, has become too overvalued to safely invest in.

The aerospace company has been experiencing tremendous growth in recent years, and investors remain bullish about its potential for even more growth ahead due to its larger new Neutron rocket, which will open up more opportunities for the business in the long run. But with the company’s market cap now hovering around $28 billion, has too much expected growth been priced into the stock? Could shares of Rocket Lab be due for a big decline?

Image source: Getty Images.

Rocket Lab’s stock carries an incredibly high premium

Although Rocket Lab’s business has been growing in recent years, so too have its losses. From 2021 through 2024, its revenue rose from just $62 million to more than $436 million. Its losses didn’t increase at nearly as rapid a pace, but they did rise from $117 million to $190 million.

When a company is in a rapid-growth phase, it’s not usually worried as much about keeping costs in check — the priority is the top line. In that context, short-term losses can be justifiable. But with Rocket Lab, investors are also paying a massive premium; the stock trades at close to 60 times its trailing revenue and 40 times its book value. Paying high multiples for stock can be warranted when there’s low risk and a lot of future growth expected, but Rocket Lab is far from a safe buy given its current levels and its lack of profitability.

Back in 2021, when it first went public, there was plenty of hype around Rocket Lab’s business, but it wasn’t trading at the mammoth premium that it is today.

RKLB PS Ratio data by YCharts.

The company may not be out of growth catalysts just yet

Despite the stock’s high valuation, one factor could still drive it higher: the company’s Neutron rocket. It’s a partially reusable rocket that can carry significantly larger payloads than Rocket Lab’s current Electron rocket. A successful inaugural launch will be a huge milestone for the business, which could lead to even more excitement around this already scorching-hot stock — and unlock more contract opportunities.

That event could, however, also turn into a sell-the-news moment where investors buy up the stock amid the chatter leading up to the launch, and then sell shares right when they might be around their peak, which might happen if and when a successful launch takes place. This is one of the risks with buying speculative stocks — their movements are extremely difficult to predict.

According to analysts, the stock is already heavily overvalued. The consensus 12-month price target of a little more than $42 is 27% lower than the current price. However, a successful Neutron launch could spark a wave of price-target upgrades from analysts.

Rocket Lab is a high-risk, high-potential-reward stock

This week, Rocket Lab’s stock hit a new 52-week high, proving that it’s not running out of steam just yet. And it may hold its momentum as the excitement builds around the upcoming Neutron launch. The closer that gets, the more the stock may rally.

Rocket Lab’s fundamentals, however, don’t support its inflated valuation, and the danger is that with expectations being as high as they are, there is plenty of room for disappointment and for the stock to fall significantly in value. Although it may not have peaked just yet, that doesn’t mean it’s a good buy at its current price. Unless you have a high risk tolerance, you’d probably be better off investing in a more reasonably priced growth stock than Rocket Lab.

In latest development of his weapons arsenal, Kim supervised the test of a new solid-fuel rocket engine for North Korea’s ICBMs.

North Korean leader Kim Jong Un has overseen a test of a new rocket engine designed for intercontinental ballistic missiles (ICBMs) that he described as marking a “significant change in expanding and strengthening” the country’s strategic nuclear forces.

The country’s official Korean Central News Agency (KCNA) reported on Tuesday that the successful test marked the ninth and final ground test of the solid-fuel rocket engine, built with carbon fibre and capable of producing 1,971 kilonewtons of thrust – a measure of propulsive force which is more powerful than earlier North Korean rocket engines.

The KCNA said that Kim expressed satisfaction after Monday’s test, calling the “eye-opening” development of the new rocket engine a “significant change” in North Korean nuclear capabilities.

The announcement that tests on the solid-fuel rocket are now complete comes a week after Kim visited the research institute that developed the engine, and where he unveiled that a next-generation Hwasong-20 ICBM is currently under development.

The development of North Korea’s ICBM arsenal adds to Pyongyang’s efforts in recent years to build weapons that pose as a viable threat to the continental United States, according to defence analysts.

Pyongyang’s nuclear ambitions are seen as a means to bolster North Korea’s status as a nuclear power and give it leverage in negotiating economic and security concessions with the US and other world powers.

North Korea also marked the 77th anniversary of its founding on Tuesday, by the current leader’s grandfather, Kim Il-sung.

In a separate report, KCNA said that Chinese President Xi Jinping sent a congratulatory letter to Kim and called for strengthened “strategic communication” between Beijing and Pyongyang.

“The Chinese side is ready to join hands in promoting the China-DPRK friendship and the socialist cause of the two countries through the intensified strategic communication and brisk visits and close cooperation with the DPRK side,” Xi wrote, using the acronym for North Korea’s official name, the Democratic People’s Republic of Korea.

Last week, Kim joined Russian President Vladimir Putin and Xi in Beijing for China’s Victory Day Parade commemorating the end of World War II.

Analysts have said that the rare trip to an international gathering of world leaders was a diplomatic win for Kim, who has fortified his alliance with Russia and China.

In a week that saw the S&P 500 lose value, one stock in particular, space rocket operator Rocket Lab (RKLB 1.42%), glowed a bright shade of green as it rocketed to close the week 9.5% higher on Friday.

And I know why.

Because I was there to see it.

Image source: Rocket Lab.

Welcome to Virginia, LC-3

On Thursday morning, Aug. 28, Rocket Lab officially opened its third “launch complex” in the world, LC-3, at the Virginia Spaceport Authority’s Mid-Atlantic Regional Spaceport on Wallops Island, just off the Virginian eastern seaboard.

LC-3 will be home to Rocket Lab’s newest and biggest rocket, the 141-foot-tall, methane-and-liquid oxygen-fueled Neutron. Capable of lifting 13 metric tons to low Earth orbit, Neutron will be 43 times more powerful than its little brother (and Rocket Lab’s current only rocket), the Electron. Neutron is scheduled to make its inaugural test flight from LC-3 later this year.

Of course, all of this we already knew about Neutron. We’ve know this since Rocket Lab CEO Sir Peter Beck promised the rocket was coming, four years ago. But here are three things you probably didn’t know about Rocket Lab stock and Neutron., things I only learned myself by attending the LC-3 ribbon-cutting last week.

From MARS to Mars

As Virginia Gov. Glenn Youngkin pointed out in his opening speech before assisting with the ribbon-cutting, Neutron will be launching from a site at the Mid-Atlantic Regional Spaceport — “MARS,” the spaceport. And as CEO Beck observed, bigger rockets can send bigger payloads farther distances — including to Mars, the planet.

Rocket Lab actually already has two satellites built and ready to go to Mars, as part of the ESCAPADE science mission for the University of California Berkeley’s Space Science Laboratory and NASA. What it hasn’t had is a rocket big enough to get them there, and delays caused by trying to hitch rides on other companies’ rockets — SpaceX’s Falcon Heavy and Blue Origin’s New Glenn — have delayed the mission.

Neutron, when it’s ready, could solve that problem by giving Rocket Lab a way to get to Mars under its own power.

Targeting SpaceX

With 43 times the payload capacity of Electron, which can itself often carry multiple small satellites at a time to orbit, Rocket Lab’s Neutron rocket is often described as ideal for the deployment of Earth orbit satellite constellations. Rocket Lab’s most recent descriptions of the medium-lift rocket, however, suggest the company is preparing to compete with rivals such as SpaceX and Northrop Grumman (NOC 0.36%) in the “cargo resupply” market as well.

Resupply whom, you may ask? Well, the International Space Station is the party most obviously in need of regular resupply runs, and currently, SpaceX and Northrop Grumman are fulfilling that function. NASA has indicated openness to allowing other companies to bid on Commercial Resupply Services contracts, however, awarding one to Sierra Nevada Corporation in 2016, for example. Nearly a decade later, Sierra Nevada has yet to actually perform a resupply mission.

Seems to me that opens up a gap that Rocket Lab may soon be able to fill.

Uncle Sam is looking for a few good astronauts

Arguably the biggest reveal of last week’s LC-3 opening, though, was a heavy hint Rocket Lab dropped as to a previously unexpected aspiration: putting astronauts in orbit.

Describing the missions it hopes Neutron to perform once it starts launching, Rocket Lab named all the things we’ve already discussed — launching constellations, visiting other planets, “and eventually human spaceflight,” too.

This revives an early hope that Neutron might give NASA and other space-users a third way to send astronauts to space, in addition to SpaceX’s Crew Dragon and Boeing‘s (BA -0.54%) ill-starred Starliner.

Admittedly, Rocket Lab stopped short of giving any real detail on its plans to develop a human-rated spacecraft for Neutron to carry. Just the hint it did drop at the LC-3 opening, though, already has investors talking about what Rocket Lab’s plans might be along these lines, which could run the gamut from helping to keep space stations crewed, to sending astronauts to the moon or Mars, or even conducting space tourism around Earth.

Stay tuned. As soon as I know more, so will you.

The Dow Jones Industrial Average and S&P 500 indexes are both nudging lower today. Rocket Lab (RKLB 8.07%) stock, however, is moving decisively in the other direction. Shares of the launch services leader are shooting higher today thanks to the company’s announcement on Friday afternoon as well as investors’ growing confidence in development of the Neutron rocket.

As of 11:31 a.m. ET, shares of Rocket Lab are up 11%.

Image source: Getty Images.

Rocket Lab can take a step toward proving the naysayers wrong this week

Before the weekend, Rocket Lab announced that it’s increasing U.S. investments to grow semiconductor manufacturing capacity, which will shore up the supply chain for space-grade solar cells and electro-optical sensors for national security space missions. To help support the initiative, Rocket Lab has received a $23.9 million award under the CHIPS and Science Act.

The second catalyst pushing the space stock higher today is the company’s planned opening of the Neutron rocket launch complex in Virginia on Thursday. In February, Bleecker Street Capital released a short report on Rocket Lab that cast doubt on management’s timetable for the Neutron. Whereas the company projected mid-2025 for an initial flight of the new medium-lift reusable rocket, Bleecker Street Capital suggested that a first flight would be more likely in 2026.

On Rocket Lab’s second-quarter-2025 conference call, management affirmed its expectation that the first launch of the Neutron rocket will occur before the end of the year.

Is it too late to fly with Rocket Lab stock for space economy exposure?

Rocket Lab’s announcement regarding increased investments in semiconductor manufacturing is encouraging, as is the opening of the Neutron launch complex this week. The stock’s rise today, however, seems a bit of an overreaction.

A successful launch of the Neutron rocket will be a powerful catalyst for Rocket Lab stock since Neutron will be the only competitor to the Falcon 9 from SpaceX. Investors looking to mitigate risk, though, may want to wait for a successful debut of the Neutron rocket before buying Rocket Lab stock.

Aug. 12 (UPI) — United Launch Alliance successfully launched one of its Vulcan Centaur rockets into orbit Tuesday, demonstrating the viability of a newly developed technology for the U.S. military’s space capabilities.

The rocket at Cape Canaveral Space Force Station in Florida at 8:56 p.m. EDT Tuesday. It’s the third launch ever of the company’s Vulcan rockets and the first time it was used for a national security mission, referred to as United States Space Force (USSF)-106, reported Spaceflight Now.

“This is literally the mission that drove the design of the vulcan,” Tori Bruno, president and CEO of ULA, said during the company’s livestream leading up to the launch.

The video showed the rocket lifting off and its bright glare cutting through the Florida night sky.

The mission centers on the Vulcan delivering classified payloads as well as a Navigation Technology Satellite-3 system into orbit. The NTS-3 is operated by Air Force Research Laboratory and will be used to shield GPS technology and critical infrastructure from jamming, the deliberate jamming of signals.

ULA said in an X post earlier that it would deploy its mission at geosynchronous orbit, which is more than 22,000 miles above the Earth’s surface and more closely aligns with its rotation.

The Vulcan’s launch means an end to the U.S.’s reliance on Russian-made rockets as mandated by Congress as well as additional capabilities for Space Force, according to a press release. The launch is the first integrated navigation satellite experiment in nearly 50 years.

Col. Jim Horne, US Space Force mission director, during a media call Monday called the launch “a historic point in our program history,” reported Signal, a publication of the Armed Forces Communications and Electronics Association.

July 29 (UPI) — Australian aerospace company Gilmour Space on Wednesday launched its Eris 1 rocket, which crashed shortly after taking off.

The test flight of the rocket, which was intended to be the country’s first to reach orbit in 50 years, follows multiple delays caused by weather conditions and technical setbacks. While the rocket launch fell well short of its goal, the company’s leader still called the test a success.

“Got off the Pad , I am happy,” Adam Gilmour, the company’s CEO said in a social media post. “Of course I would have liked more flight time but happy with this.”

A video of the launch posted online shows the rocket rising from a cloud of exhaust and remaining in the sky for a matter of seconds before it lost momentum and dropped back down.

The Eris is the first Australian-made rocket to attempt to orbit the planet and was launched from a spaceport in Bowen, Queensland, according to the company’s website.

The launch drew spectators who cheered the home-grown company’s attempt to put a rocket in space, according to the Australian Broadcasting Company.

“If they’re talking about more satellites going up, it would have to help Bowen’s economy in the long term,” resident Douglas Tawse told the broadcaster.

Jonti Horner, University of Southern Queensland astrobiologist and astronomer, told the news outlet that the test by Gilmour Space demonstrated that the space industry had mature, moving beyond an era when only government agencies were able to launch rockets.

“In the last decade or so, there has been very much an explosion in our use of space, and that’s been because there has been a shift to commercial capacity to put things into orbit,” he said.

Brits are said to be “ditching” a popular holiday destination as prices to visit continue to soar. They instead seem to be opting for a cheaper alternative

Brits are reportedly giving a once-beloved holiday spot the cold shoulder as sky-high prices make trips to the destination increasingly unaffordable. Reports suggest that the cost of a holiday in Turkey is on the rise, with inflation hitting the tourist favourite hard.

In recent times, disgruntled travellers have been vocal about the escalating costs, with many considering a boycott in favour of more budget-friendly sunny escapes. Now, it appears a new destination has caught their eye, as viral posts suggest holidaymakers are swapping Turkey for Albania, and they’re loving the change.

A TikTok user by the name of ahmadsquad1 shared her bewilderment in a video post-holiday in Turkey, pondering over the noticeable lack of bustle. She acknowledges the inflation issue but is curious about why certain spots remain deserted.

In her video, she queries: “So we just got back from Turkey, and [in] every single shop we went to they were complaining about how quiet it is, and how there’s not that many people on holiday and, if they are on holiday, they are broke and don’t do loads of shopping – us included, but why is it?

“Where are people going? Why is that you have stopped going? One thing we did notice when we were there was like, for example, any kind of can – whether it’s branded or local brand – they would be like £4.00. Ice cream was like £4.00. Everything was so expensive.”

She mentioned that a typical meal such as a kebab and chips would set you back roughly £8.00, leading her to wonder whether the sparse crowds are down to inflated costs. Alternatively, she suggested that holidaymakers might simply be hunting for more budget-friendly getaways.

When she invited viewers to share their opinions, many disputed her claim that Turkey had ever been the top choice for British tourists. Nevertheless, some confessed they’ve sworn off returning to the country.

One person responded: “Been going to Turkey for years, but last year was different. Inflation hit hard, prices were high, getting overcharged. Hospitality didn’t feel the same. Not surprised fewer people are going now.”

Another suggested: “Should try the Balkan countries. Bosnia and Albania are lovely and very affordable.”

A third chimed in with: “Turkey has gone more expensive now, especially in Istanbul which makes it not worth it. People are now going to Bosnia or Albania.”

Meanwhile, a fourth contributor noted: “Turkey has gone expensive and a lot of people are choosing cheaper options like the North African countries, Balearic Islands or Greek islands.”

However, not everyone was convinced by the complaints, with one person writing: “Turkey isn’t that expensive – I don’t see what everyone is moaning about.” Another countered: “Of course the tourist areas are expensive, but decent places are cheap.”

Why is Turkey becoming so expensive?

There are a few reasons why prices are said to have shot up in Turkey. Statista has offered one explanation.

The website reads: “Domestic producer price indices have been continuously rising, which has directly resulted in a price increase in all consumer goods and services. Accordingly, the Consumer Price Index (CPI) in all commodity groups increased extremely since 2022.

“In the same year, the food and non-alcoholic beverages category had one of the highest inflation rates in the CPI. This particularly affected Turkish consumers, as these products accounted for the highest share of household expenditure in 2023.

“Since 2020, food prices have increased significantly around the world, and Turkey is no exception. Although inflation has started to slow down recently, food prices in Turkey continue to go up steadily, increasing by 48.6 percent in November 2024 compared to the same month in the previous year.

“It is not surprising that food inflation has not simmered down, as the producer price index (PPI) of agricultural products followed a constant increasing trend in the country over the past few years.”

Nevertheless, Turkey is reportedly implementing measures to revitalise tourism, tackling escalating costs, diversifying holiday experiences and pumping money into infrastructure. Authorities are allegedly working to curb inflation, whilst some are championing specialised tourism sectors such as wellness retreats and medical tourism.