After a Breakout Quarter, Rocket Lab Is Starting To Look Like an Interesting SpaceX Rival

"SpaceX’s IPO will change the way the S&P 500 and Nasdaq 100 will look. Of course, the latter will be changed far sooner than the former, given recent rule changes that will give the coming slate of AI mega IPOs a "fast track," allowing the mega-cap titans to be eligible for inclusion in the Nasdaq after 15 short days. If ever there was a strong case for preferring the Nasdaq 100 over the S&P 500, it'll be after SpaceX and the rest of the mega IPOs touch down."

"As things like satellite connectivity and orbital AI data centers become more of a reality and less of a thing of science fiction, we might be entering a time where space plays become more of a highly investable growth play, and less of a speculative question mark. Like it or not, SpaceX's IPO will change the way the S&P 500 and Nasdaq 100 will look."

"In any case, though, a name like Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) looks that much more interesting after reporting a quarterly earnings result that impressed Wall Street in a big-time way. The company clocked in revenue that was up just shy of 64% year over year. The backlog is becoming quite massive, and gross margins are on the right track."

"It feels like the space companies are starting to become serious growth business models. And as SpaceX finds its way onto the Nasdaq, pretty soon, your average investor will have a good amount of exposure. Just like Tesla"

Space stocks may enter a highly exciting period as SpaceX prepares for an IPO that could influence broader market perceptions. Satellite connectivity and orbital AI data centers are becoming more practical, turning space-related businesses into investable growth opportunities rather than speculative question marks. Rule changes may allow AI mega IPOs to be included in the Nasdaq after 15 days, potentially making the Nasdaq 100 more affected sooner than the S&P 500. Investors may also look at adjacent companies, especially Rocket Lab, which has shown strong quarterly performance. Rocket Lab reported revenue up nearly 64% year over year, growing backlog, and gross margins trending in the right direction.

Read at 24/7 Wall St.