TL;DR
A Reddit user, heavily invested in Rocket Lab (RKLB), spins a tale of disruptive innovation and massive future growth. The reality? A speculative stock fueled by hype and a delayed flagship product.
Story
Rocket Lab (RKLB): From rock bottom to rocketing higher? It’s a classic story of market mania, dressed up in the shiny new suit of space exploration. The stock, after bumping along the bottom for three years, suddenly shot up nearly 700%. Why? A mix of hype, hope, and a healthy dose of speculation.
The narrative goes like this: Rocket Lab’s Electron rocket, a smaller, more flexible launch option, has found its niche. Their upcoming Neutron rocket, still on the drawing board and delayed to 2025, is touted as a “Falcon 9 killer.” But let’s be real—promises are cheap in the pre-launch phase. Remember the dot-com bubble? Companies with no revenue and only a dream soared, then crashed and burned.
The author, blinded by rocket exhaust and heavily invested, draws comparisons to Apple and SpaceX. ‣ Vertical integration: Controlling all aspects of production, from parts to final product. Sure, Rocket Lab makes its own rockets, but Apple’s ecosystem is built on seamless integration between hardware and software—a very different beast. And comparing a $12 billion company to SpaceX’s $350 billion valuation? That’s like comparing a firecracker to a supernova.
The author dismisses financial metrics like price-to-sales ratios. ‣ Price-to-sales ratio: A valuation metric that compares a company’s stock price to its revenue. Ignoring these fundamentals is like building a house on sand—it looks great until the tide comes in.
The post is peppered with emotive language—“iPhone moment,” “chubby, black, sexy dildo shape”—and appeals to tribalism: “political neutrality” as a dig at Elon Musk’s SpaceX. This isn’t analysis; it’s marketing. Remember the 2008 housing crisis? People bought into the hype, ignored the warning signs, and lost their shirts.
The author’s own “positions” reveal the depth of their emotional investment, including Rocket Lab merchandise. This isn’t just investing; it’s fandom. When you’re emotionally attached, critical thinking goes out the window.
Advice
Due diligence isn’t just reading Reddit. Scrutinize financial statements, analyze the competition, and be wary of emotional appeals. If something sounds too good to be true, it probably is.
Source
https://www.reddit.com/r/wallstreetbets/comments/1im2lcx/rocket_lab_is_more_than_a_meme_stock/