TL;DR
RKLB’s massive gains look tempting, but it’s a classic speculative bubble fueled by hype, not fundamentals. Remember history’s lessons: bubbles always burst.
Story
Rocket Lab (RKLB) investors boast of turning $106,000 into $662,000. Sounds incredible, right? It’s a classic speculative bubble narrative. Remember the dot-com boom? People got rich on paper, then lost everything. This RKLB situation reeks of similar hype. ‣ Speculative Bubble: When asset prices skyrocket based on hype, not underlying value.
The provided image shows a steep stock price increase. But where’s the real value? Delayed projects, missed deadlines—all glossed over by “diamond hands” HODLing. ‣ Diamond Hands: Investors who refuse to sell, even when facing losses. They’re betting on future potential, ignoring present failures. Like gamblers chasing losses, they double down on hope. Remember Enron? Blind faith led to disaster.
Some claim RKLB’s “potential” is limitless. That’s the siren song of every bubble. Potential doesn’t pay bills. Profits do. And RKLB’s track record is shaky at best. Look at the facts: The “hot fire” test, the Neutron launch, the promised 22 launches—all delayed or nonexistent. These aren’t minor hiccups; they’re red flags. ‣ Red Flag: A warning sign of potential problems.
The comments celebrate “holding long term.” This sounds noble, but it’s often denial. Holding onto a sinking ship doesn’t make it float. It just delays the inevitable. Remember the 2008 housing crisis? People clung to overpriced houses, hoping the market would rebound. It didn’t. Many lost everything. Don’t fall for the same trap.
The screenshot bragging is another warning sign. It’s performative investing—more about social media points than sound financial decisions. It encourages FOMO (fear of missing out), pushing others to jump on the bandwagon. ‣ FOMO (Fear of Missing Out): The anxiety of missing a potential opportunity, leading to impulsive decisions. This fuels the bubble, making it bigger and more fragile.
Advice
Don’t get blinded by hype. Research, analyze, and be skeptical. If something sounds too good to be true, it probably is.