Rocket Lab (RKLB) stock climbed nearly 2% in overnight trading heading into Thursday after the company's CFO positioned its upcoming Neutron rocket to fill a market gap as SpaceX shifts focus toward Starlink, Starship, and space-based data centers. At the Wells Fargo Industrials & Materials Conference on Wednesday, CFO Adam Spice said SpaceX's future opportunities lie beyond commercial launch services, creating what he called a 'very nice spot' for Neutron in the merchant launch market. The company continues targeting Neutron's first launch before the end of the year despite a February testing setback when a booster tank ruptured due to a third-party manufacturing defect. RKLB stock closed Wednesday at $105.05, down 3%, tracking a second straight week of losses.
Rocket Lab CFO Positions Neutron Against SpaceX at Wells Fargo Conference
At the Wells Fargo Industrials & Materials Conference on Wednesday, Rocket Lab CFO Adam Spice said SpaceX's future opportunities lie in Starlink, Starship, and potentially space-based data centers rather than commercial launch services. He stated the merchant launch market could become less important to SpaceX over time, creating an opening for Rocket Lab's Neutron rocket. "It seems like Neutron's going to have a very nice spot in this market going forward once we can actually get it to a point where it can scale rapidly," Spice said.
Spice acknowledged a February testing setback after a booster tank ruptured but said the issue was traced to a third-party manufacturing defect. "Everything right now is still pointing towards an opportunity to launch before the end of the year," Spice said.
Rocket Lab Scales Neutron Production to Four Rockets Annually
Rocket Lab is scaling production for up to four Neutron rockets annually and is producing an Archimedes engine every eight days. Spice laid out the company's path toward reusable Neutron boosters: "The third tail is the one where we plan on launching it, bringing it back, and putting that back into service," he said.
The company plans for each booster to fly up to 20 times, with a fleet of six boosters potentially supporting nearly 100 launches per year.
Rocket Lab Secures $1.3 Billion in SDA Awards and $90 Million Space Force Contract
Spice said Rocket Lab's ambitions extend beyond launch services: "Because ultimately my goal with Rocket Lab is not to just be a launch company, but I actually want to have my own assets on orbit that I generate recurring revenue from." Drawing parallels with SpaceX, he said: "We share the same goal."
Rocket Lab has expanded through acquisitions including Motiv Space Systems, Mynaric, Geost, and SolAero, while growing its government business. Last month, the company said its solution for the Space Development Agency's Tracking Layer Tranche 3 constellation became the technical baseline for the program, supporting more than $1.3 billion in SDA-related awards. Days earlier, Rocket Lab secured a $90 million U.S. Space Force satellite contract.
Rocket Lab recently completed its ninth dedicated mission for Synspective and said on X that its factory is "busier than ever," with its 100th Electron rocket moving through production.
Retail Sentiment for RKLB Drops to Bearish
On Stocktwits, retail sentiment for RKLB dropped to 'bearish' from 'bullish' a week ago, amid a 48% decline in message volume over the same period. One user said, "Some folks sold RKLB and $ASTS to chase that shiny new thing called SpaceX. Let's see how it works out in the short term." Another user said, "$RKLB $70 coming unfortunately... Market may come down substantially...due to SpaceX IPO and the other IPOs."
RKLB stock has surged 287% over the past year.
FAQ
What did Rocket Lab's CFO say about Neutron at the Wells Fargo conference?
At the Wells Fargo Industrials & Materials Conference on Wednesday, CFO Adam Spice said SpaceX's shift toward Starlink, Starship, and space-based data centers could leave a market opening for Neutron. He stated, "It seems like Neutron's going to have a very nice spot in this market going forward once we can actually get it to a point where it can scale rapidly."
When does Rocket Lab expect to launch Neutron for the first time?
Rocket Lab still targets Neutron's first launch before the end of the year. CFO Adam Spice said, "Everything right now is still pointing towards an opportunity to launch before the end of the year," despite a February testing setback caused by a third-party manufacturing defect.
How much is Rocket Lab's Space Development Agency contract worth?
Last month, Rocket Lab said its solution for the Space Development Agency's Tracking Layer Tranche 3 constellation became the technical baseline for the program, supporting more than $1.3 billion in SDA-related awards. Days earlier, the company secured a separate $90 million U.S. Space Force satellite contract.
